All Forum Posts by: Oliver Fang

@Dan H. Thanks for the advice. Yeah I kinda expected to just break even so any cash flow is actually extra. I'm mostly looking at the property and rent appreciation. Yeah, cap expenses are a thing, but it's part of owning a house and will come with any property, no? The good thing is that the owner did a good job maintaining and the property is close enough that I can do some of the things myself. I guess I can go into that a bit...the carpet hasn't been changed in 7 years or so it's something that needs to be replaced for sure. 50 year roof was just newly done and the home inspector said the installers did a good job. I'm still waiting on his official report but some things that look like they'll need replacing is a couple of the door frames, the "popcorn" ceiling, one or two of the appliances, and maybe some new paint. I think the agent will do some negotiating and the seller is a very reasonable/handy person so you think there's a chance that he will cover some of it? If I'm renting out, are there also tax credits I can get from my own maintenance costs? Any other tips regarding this?

I appreciate the concern, but I think after looking around for a couple months, a place like this in Mira Mesa is pretty ideal for my situation. It's close enough that I can easily self manage, decent rent to purchase price ratio, no HOA/Mello Roos, appreciating neighborhood, and relatively easy to sell if I need to.

Composite flooring is a good suggestion. I do want to try to match the color/texture of the flooring on the first floor, which is bamboo, but I'll definitely look into it.

@J.R. St Julien Thanks for the cost estimates! That seems in line with what I've been hearing from friends in the area and looking at listings online. Good point about the room rental situations. It sounds like renting to a family is probably the way to go. I'm all about less hassle.

@Marshall Martinez @Lee Ripma Thanks for the responses guys! Sounds like you both recommend the fixed rate. I will give that some serious consideration then and see if the math still works out.

The unit is 2100 sqft, 4/2.5 and the yard is really quite nice. Carpet upstairs needs to be replaced and I think we might just do all hardwood so its easier to maintain. In a quiet, convenient location a couple blocks from an elementary school. Wow, 3600 for the whole house? I did not think it could go for that much-I guess I'll do some more research but I was thinking I could get at least 3000-3200, which I would already be happy with. I agree on renting to a family or at least a group of people. Easier job on my part. 

Thanks again for the help guys! I'll keep you posted!

Hi guys!

I posted in here a while ago looking for advice on a buy and hold property in San Diego. After a good deal of looking around, I finally settled on a place in Mira Mesa. The seller has accepted my offer and I'm looking for some advice with the next steps. We have an agent helping us who is a family friend and I trust she will do a good job guiding us through the process but still looking for other opinions and extra advice. 

I spoke to a loan agent and my options are 30 year fixed at ~4%, 15 year fixed at 3.125%, or 30 year with 5Y and 7Y ARM at ~2.875% and ~3.125% respectively. This is assuming I'm taking a less than ~420K loan (there is some cutoff number around there, after which it gets higher). What would you guys do? I don't think I can afford the monthly payments on a 15 year loan and 4% is pretty brutal. So is 5Y/7Y ARM safe at this point? It wouldn't shoot up like crazy right?

I did the math (for 5Y ARM) and the monthly payment comes out to just under 1800 a month. Property tax is around 1.15% and comes out to about 560 a month. No HOA fees and I plan on managing the rental myself. Just based on some very brief research of rental prices, a 4BR should be able to cover the ~2400 costs with leftover cash flow fairly easily.

I plan on renting out at least 3 of the 4 bedrooms, maybe the 4th as well if I decide not to live there long term. Anybody have experience doing rentals in Mira Mesa area? How much would a 4BR single family go for? Or is it worth it to spend some extra effort and rent out the rooms individually? The house is older but the inside has been remodeled and is well maintained. Yard and exterior looks nice as well. Where do you guys post rental listings? Craigslist? Any other advice for someone who is just starting to rent their first unit? 

Let me know if you have any questions for me, and I would greatly appreciate any feedback regarding my situation!

Thank you!

@Dan H. Wow! That is a lot of work you put in (I say that with an impressed tone and not a discouraged one)! It sounds like there is a lot of rehab work involved. How did you come across the awesome handyman? Just pure luck? Also, are you working a full time job while doing this? That would be pretty amazing if you were able to squeeze out the time.

Yeah agreed on the tenant part. That is my biggest fear actually. I'm scared I'll get a nightmare tenant that is a ton of work to deal with. It sounds like @Rod F. Hatefi just answered the question I had with this actually-that a good neighborhood really matters. I guess my question is now, are the ROI worse in neighborhoods that are "good"? Say in La Jolla, where housing is quite expensive. Or are the two not really related? I live in Pacific Beach and it sounds like most of the recommendations are fairly far from me in East county. What is your advice for someone like that? Agent?

That makes sense on the REITs. At this point in my career and life, this might be an option for me. I feel like there is quite a bit more I need to learn about real estate. I think I need to sit down with someone and really talk out the details so I get comfortable with everything haha.

@Joe Sherman, @Dan H., @Justin R. Thanks for the explanations! That definitely makes sense. I'm at a point where I can probably afford some depreciation/no income flow but you've really changed my mind-it certainly makes sense to find a property that generates income if possible. 

How much work is managing a multi-family, especially out in East County? It's a bit far from where I live, and I'm worried I'd have to drive out often to show the house to potential tenants and do maintenance. Do you guys hire agents for this sort of thing? I'll try running some numbers later but off the top of your head, how much does this eat into profits? I'm guessing it still makes sense overall? 

What is your guys's opinions of real estate investment trusts? I realize it's pretty different from doing actual buying and holding but someone mentioned it as a way of getting better (albeit more risky) returns on investment. What is considered a good annual return on these? 10%? 20%?

Thanks for all the responses guys!

@Dan H. and @Justin R. As far as time goes, my post was probably a bit exaggerated. I realize that real estate is going to take effort. So I'm definitely willing to put in the time into looking for good properties, finding the right clients, and maintaining the property and my relationships with renters and agents, etc. I simply don't want to be constantly buying, rehabing, and flipping houses. I like free weekends :). My original thought was to put down a down-payment, let rental income cover mortgages and other expenses, and eventually the property will be paid off. Maybe potentially refinancing to buy a second property at some point. It will eventually generate cash flow, right? Do you guys think that is a sound strategy or am I totally off here?

@Joe Sherman Thanks for the recommendation on those locations! Are there any websites you would recommend when looking for multifamily units? I'm most familiar with single family and have been using sdlookup.

@Eugene Lee I wasn't very keen on out-of-state but I'm open to having my mind changed. Is it easy to find and maintain rental properties out of state? I'm guessing I either need to travel to see the property or have someone locally? How would I go about finding such a person?

@John Reardon Thanks for the recommendation on locations! I will definitely reach out if I find that I need some help!

@Justin R.

Hi everyone!

I'm new to the site and new to real estate. I'm currently working in San Diego and have decided to move part of my savings/investments into real estate. I'm primarily looking for a buy and hold unit, probably single-family, that I can rent out. I don't mind too much if it doesn't have cash flow, I just want it to at least break-even. I'm not really looking to BRRRR (at least not yet)-don't really have too much time outside of my job to invest into real estate, so looking for something lower maintenance.

I'm looking for something in the 300K-500K range. What are some good locations to look at? Any other considerations for someone just starting out? I'm still kinda new to the site but I heard about meetups to learn about investment and meet other people in the business. Does anyone know where I can find such events or have any recommendations? I realize it's the holiday season so people are busy around this time but something in the New Year is great too!

I hope I posted this in the correct place. Mods, feel free to delete otherwise-but please let me know where I can post. 

Thanks!