All Forum Posts by: Paul D.

Thanks @Mark Frattini. Can you break down on what you mean by right keywords and one photo listings (needing rehab?).

@Nicholas Coulter. Hi Nicholas, where are you finding immediate cash-flowing assets in the San Diego area?

Thanks @Greg R. Good info.

Thanks @Dan H.. Rent cap info. is helpful too.

Thanks @Dan H..

Have a follow-up if I am going the route of Duplex investment here in San Diego/County (based on the Plan part of my orig. question):

I am ok with an initial neg. cashflow in exchange for an overall appreciation (rent + property value). If looking for a Duplex, non-owner occupied (let's say I am not doing BRRRR or immediate value-add), what are the essential/important things I need to be looking for? For instance, not to buy at retail value -- How do you go about achieving that? What would I be negotiating to achieve the optimal price -- at least PITI being covered by rents?

What numbers I would be baselining on, given the San Diego market conditions (as this is different from most other)?

On average, how long will it be before I see CF breaking even and ascending?

Appreciate yours/folks' wisdom and answers both from experience and current conditions.

Thanks.

@Claudio Salvatorelli @Joshua J Cawthorn Thanks for the good advice!!

@Dan H. Thanks for the insight. I do feel remorse over paying the condo off early on, just a bit of a newbie(or maybe due to following a different advice from another popular media source). I would love to look into BRRRR types; how do you find them? MLS? I do have some time that I am able to allocate to see if that is worthwhile. Also, what has been your experience with passive syndications? I know I am sort of starting late in this venture, but even if I can get gains over the next 2 decades, I am happy. Thanks.

Thanks for the advice.

Hello BP!

I just joined the site today, and relatively new to RE investing. I am an engineer by profession in my late 40s, and would like to get more involved in RE in the San Diego area. I feel like there is lots of wisdom from many folks here that I can utilize. To this, I would appreciate any and all advice/critique. If I am not asking the right questions, please point me to the right ones. I want to ensure I am doing the due diligence.

Brief Background:

I have a paid off Condo in El Cajon, that I purchased in 2017, that is worth ~400K, which is being currently rented out for $1,950.  Currently live in N. CA, and have a PM maintain the rental, and it has been a smooth experience with hardly any issues with tenant (Rented out since Jan 2021).

Plan:

I am wanting to invest in a rental/duplex (non-owner occupied). I am thinking of getting a cash out refi on the condo for ~240K (60-70 LTV?), and add some cash, for 25% down payment, hoping for a 800K - max of 1 Mil. range duplex; and mortgage the rest. I am ok with some short-term negative cash flow for an overall positive cashflow and appreciation over the long haul 10+ yrs. I am hoping to invest in the B- or C class areas (El Cajon, Santee, etc. but also SD area).

Questions:

1. Currently have MLS listings from agents, and am familiar with 50%, 1% rules, etc. but I understand San Diego market is different. Given that, what are the metrics I should be looking for, if that is a way to screen the listings. I am open to your suggestions on the best way to screen/analyze.

2. Do I need to look for value-add types of properties? How about 2 individual condos/townhomes in lieu of a duplex?

3. I got quotes from few brokers/lenders and as of now the interest rates are at 6.5% ish. Any advice on to wait for few months or is this still an ok time to purchase.

4. Any important criteria or areas I need to be looking at?

Thanks.

Paul