All Forum Posts by: Ross Y.

Thanks everyone! I'm already living in a property where I rent out a granny flat, so in that sense, I am house hacking. Just wanted thoughts on investing 31k out of pocket for a condo that won't provide much cash flow and managing it myself vs investing out of state for cash flow and using a PM. Looks like most of you agree that I should move forward with the condo. Other thoughts are appreciated. Thanks BP!

Hi Ken, How did you find this package of properties? I'm interested. Wanna go half? jk, good luck to you sir! :)

Hi Community! I'm in contract on a deal currently and since then, I've found BP and I'm starting to question my decision. I'd like to get a little bit of advice on my current situation to help nudge me either way.

I live in San Diego County which is typically a "growth" market and buying property here with minimum DP in a decent area will typically get negative or even CF, but the occupancy rates are very high AND equity gain is almost guaranteed over a few year period. 

Here's a quick snapshot:

Age: late 20's

Income from Job: over 200K, legally max 401k (18k per year).

Investing goals: I want some buy and hold props to add to retirement (income levels wont let me start IRA). I would also like to invest for income in the future.

Primary Residence: purchased 1.5 years ago 3/2 w/ granny flat i rent out for 1250, mortgage is 2879.

No other debt, good credit

Deal to analyze: 225K 2/1 REO condo in Rancho Penasquitos (best SD in county, barely any rentals available). Cheapest property w/ 2 bd within 8 mi radius. Full payment w/ PITI, HOA & MI (119). 10%down. is $1547. needs around 6 K in renovations to demand top rent. Can rent it for 1600-1850. It doesn't flow much, BUT will rent in a day. Reason for purchase is to obtain a property in one of the most desirable areas in SD, my kids attend the SD there and i need to use address (current SD @ primary is a 2 on GS, all 3 schools at this prop are a 10), gain more experience as a landlord, and obtain debt paydown from renter, was going to buy and hold until my kids are out of school (12 years). Total out of pocket CASH w/ CC/DP/REhab is around 31K.

Thoughts since i've been on BP: Oh what you've done to my brain BP!! I was thinking that i could find a MFR in the south somewhere and have it PM'd (i travel there quite a bit for work), I was thinking that with 30 or 40K out of pocket i could probably find a deal that could create 1000+ in CF within a short amount of time. Because of my income, i can replace or grow that amount quite quickly.

Just wanted to get some of your thoughts on this while i'm stil in contract and can back out... Thanks for helping a newb :)

HI @Justin R. Thank you for the response, I appreciate the invite. Will you please send me the meet up information? If I can fit it into my schedule, I'd love to network with locals.

When I say very well, I mean a couple thousand for a prop under 1M. Off the top of my head, 3-5 months ago I found a 5 unit 2/2 with 2 car garages for 865k in south escondido. I visited the property, which was fully occupied and after my calculations, looked to flow a couple thousand with market rents. 

I look almost everyday and would like a community to bounce some numbers off. I feel like the SD market is very competitive and priced quite high right now. Do you?

-Ross

Hi Everyone,

After following a few posts on here, I figured that I would introduce and throw myself into the community since everyone on here is quite warm to and eager to help out newbies and professionals alike. Maybe this will turn into a nice business venture for me since I already own property and I'm always looking for a deal. I'd like some thoughts from members on my current ventures, and can't wait to banter through future deals. Here is a quick financial snapshot of where I'm at from an investment stance.

Personal income is over 200K and I'm in my late 20's

Primary Home: Purchased home in Dec 2014 in San Diego, it's on  3/2 1938 sq ft home with non permitted 438 sq ft granny flat which I rent out for $1250 incl utilities. Granny flat has separate driveway and is fully detached. I built a fence around the back of it so they have a little yard, but It's nice cash flow for my primary. My wife and I screened the tenants VERY well to ensure a safety.

Please provide thoughts on the prop below:

Investment Prop: Currently in Contract for- 225K 882 Sq foot Condo w/ HOA's @ 270. Rents range in complex from 1400-1850 so with 10% Down, PITI & PMI= 1540. Reason for purchase is to own property in best School District in County (Poway Unified). Property is in Rancho Penasquitos if you're interested in the area, property will rent in a day. It's an REO and is priced fairly low for the area (least expensive condo within 10 mile radius). It needs around 5K in work to obtain mid-market rents (200 cash flow). My reasoning to purchase this property is to keep my kids in the SD it's in, Make a little bit of cash flow (rents are rising around 8.5% per year here), obtain debt paydown from renter, gain equity in this growth market, and continue to gain experience as a landlord. Also, I pounced on this one because I haven't been able to find many properties that can cash flow or break even with 10% down (i look almost every day).

In my searches, I've found quite a few MFR's that flow VERY WELL, but by the time I call a business colleague or friend for private money, pitch them and convince them, the property falls is already in contract; they go quick around here and w/ 25 down required, avg dp is 250K. I'd ultimately like to work with and meet with people that would like to act on a deal together (i'm also willing to put skin in the game). I look forward to interacting with the community and I'm eager to respond to member replies. :)

-Ross