All Forum Posts by: Robert Comstock

few things here from my limited experience.....

1. what is the rate on the original home loan because rates have shot up in the last couple months a bit...if your current rate is higher or about the same it makes sense to do it now.  Then pay off the heloc (if #3 is not a issue), because when you find your investment property you can just use the heloc again for the down payment.  Remember though, helocs are variable rate debt (I believe) and if rates start to climb that debt will start to hurt.

2. what's your timeline to pick up the investment....remember it will take about a month to get the equity cash out loan done so if you wait till you find the deal to start the refi, you may have a problem.

3. Sometimes they (the lender) wont let you use the HELOC to (officially) purchase other property so make sure with your lender that's not an exclusion

4. IF (big IF) your not in love with your current house you could sell it, taking equity gain tax free (if 2+ years living there already) and then use that money to house hack a bigger or multi property. That way it keeps you in San Diego and gets you on the rental ladder (if staying in San Diego something you want). This will also possibly allow you to value-add by both remodeling and possibly adding ADU's. Adding a twist to this, depending on where you purchase, you could turn your rentals into short-term or executive/traveling nurse rentals to boost the income...provided your willing to self manage.

adu geeks https://www.adugeeks.com/can do an evaluation on your property for 500 bucks with estimates of costs vs expected rents....fyi.... If you dont really have the experience to gather that data yourself.  I got the evaluation which was worth it to me since I didnt have that knowledge.  I was also not 100% sure how the zoning impacted that which they will go though with you.

For the deals Im looking at, the "easiest"  way to make them cash flow is value add.  You also may want to give some consideration to zoning if in San Diego proper.  My agent @Maxwell Ventura has some content online that discusses the zoning consideration.  This info was very useful for me to hone in on my target area.

I would echo the sentiment that your first deal just needs to lower your cost of living. if that means you buy a 3 bedroom condo and rent out a couple rooms or you get a quad and live in one...it almost doesn't matter...just reduce your living expense.

What's your end goal...is a certain return on equity or having a live for free situation or having a "4 houses by the time I'm 40" thing...I think it matters what your goal is and what is your risk tolerance is.

If your looking at MiraMesa price point also consider Clairemont and/or UTC (condos).  Some of this will depend on who your trying to get as room mates.....meaning maybe grad students near your age (for instance), or anyone.  If you want the biggest "house" bang for your buck perhaps you look towards santee along the 52 freeway....but your room-mates may be different (life stage) people.....A better question might be.....who do you want to live with?

yea cost wise its IB or Oceanside in San Diego county from a cost perspective.  

dont over think it.....I think that if your planning on living in San Diego for the next 5+ years buying will trump renting.

well you can start one but it will melt from the heat

i would sit on my hands and do neither and see how the virus starts to play out on the market.....you may see more opportunities to deploy capital in the next year.....all things being equal