All Forum Posts by: Nathaniel Donnelly

...and even if there is another housing crisis rents always seem to rise and never seem to go down, so as long as I acquire fixed-rate loans, I should always be able to at least break even.

Great thing about San Diego is everyone will always want to live here...unless the unthinkable happens...but then we have worse things to worry about it.

Simon,

That's really good advice, and I honestly never thought of it from that perspective.

We actually had no choice but to refinance this way because I am using a VA loan, and due to some debt to income issues, it was the only way we could do it. We bought the primary with the plan to refi in 6 months to get rid of PMI, which is where we're at now.

Perhaps in the future we can reverse our mortgages to put the equity back in the primary.

However, our primary loan will be ~700k, and will appraise around $750k, so paying it off isn't an option right now.

Since rates are still so low right now, wouldn't the best idea be to acquire as many rentals as possible rather than pay off the primary first - ensuring 100% cash flow as the mortgages are paid off?

I'm thinking that as housing prices rise, if SHTF, I can always dump one of the rentals and use the profit from appreciation to mitigate any crises.

Is this a risky/unwise way of thinking?

Al,

I'm currently netting +$710/mo. on the current rental. ($1500 Rent - $790 Mtg.)

And yes, I'm hoping it'll cash flow. Obviously that would depend on what I can rent it out for minus the mortgage.

I've heard of people doing thios though...and honestly, I'm more interested in having multiple paid off homes in a few decades rather than monthly cash flow at this point, so as long as they break even after factoring in maintenance costs, I'd be fine with that.

All,

Long time coming, but I wanted to thank you for your advice.

Turns out the inheritance was actually about $250k! I was able to pay off my car, debt, school loans, and still have $145k to put down on a $700k property.

My girlfriend is renting out her property and I am currently refinancing the big place (current residence) and paying off my rental which would appraise at about $250k right now. It is currently being rented out for $1500/mo.

After the refi, I'm thinking of pulling out enough from that rental to put down 25% on a third rental property. Is this wise?

Thanks again all!

All,

I am in San Diego and currently in a refi with the home I live in that will include paying off one of my rental properties. It would probably appraise at $240k to $250k and I am currently renting it out at $1500/mo.

I have a buy-and-hold strategy and would love to have as many homes bought and paid for (by tenants) as possible by the time I retire. I am now 37 years old.

My question is this: What is the best way to achieve this goal? I was thinking about pulling out a home equity loan to put down 25% on another investment property...which would be ~$75k for a ~$300k property. Still not sure how realistic that is with everyone paying in cash for homes in this range here in SD.

I also would like to increase that $1500/mo positive cash flow if possible.

Anyone familiar with a) the San Diego market and/or b) long-term buy-and-hold strategies that may be able to pass along some advice?

Thank you in advance!

@ Ru, I have the same problem and your advice caught my attention. I have $250k and our plan is to pay off debt and cars (90k) and put $140k down on our dream home in SD, which we are in escrow with, but with a 50/50 chance of getting. We own two homes already, but one is $30k upside down still (hence the escrow issue). We would have $4000 cash flow at that point and low reserves, maybe $10k. If we are unable to close escrow, my plan was to put 25% down on two $200k homes to rent out, along with the other home we own. On that last one, I have 25% equity already. With the latter option, I would have $55k in reserves and a $5200 cash flow. Thoughts?

Greetings! I will be inheriting about $40k on October 1st. My girlfriend and I already own three properties, two of which are being rented out already, and aside from the mortgages, we are debt free. We have about $200k in equity on the three properties. What advice do you have for us regarding the investing possibilities in San Diego for that $40k? Thank you in advance!

Hello all, We are about to buy our third property and since it is an older place, and we're spending $700k on it, we want to be sure we select a thorough inspector that we can have confidence in. How would we go about finding one? I'd like a VA/FHA-style inspection, and could use my former inspector who did my first home (VA). Does it really matter? Any advice would be helpful. Thank you.

Me, me, me! Looking at a buy-and-hold strategy for SFHs in San Diego. Does the analysis tool account for the neigborhood trends, or does it matter? Thanks!

Alemneh Asefa,

Welcome to BP! I'm brand new here and have just turned my first property into a rental here in San Diego. Looking to buy my second rental here before the year's out.

I don't want to say I have work for you just yet, as I don't really know what I'm doing, haha. Just trying to get my real estate education before I pull the trigger for real. And I believe I'm going to go with a buy-and-hold strategy initially.

If I were you, I'd join one of these REI groups here in SD. Just went to a meeting last night about the right way to find good contractors. Here are a couple links:

http://www.meetup.com/FIBI-San-Diego-Investment-Club/
http://sdcia.com/

All the "who's who" in SD go to these things, and I'm sure you'll find what you're looking for. I think the next SDCIA meeting is on the 14th at the Scottish Rite Center in Mission Valley. I'll be there.

Good luck brother!