All Forum Posts by: Sarah Enero

Thank you so much for this! You are definitely right, to always think of ROI when planning on what to prioritize when doing a live in flip! Thank you again

 Thank you so much! I don't know why I didn't think of just asking a ballpark figure for a bid, although I have numbers in mind but yes ballpark cost will be very helpful in planning things out. Really appreciate your time!

Hello everyone!

I'm in escrow for a one bed/one bath condo I want to do a live-in flip. I know going into this, I will have to deal with HOA but because of budget, I can't afford a property to house hack in San Diego and I figured a condo will help me get started given I'm also a 1st time homebuyer.

After inspection there were no red flags, just minor repairs that the seller is taking care of now. As someone who's very new to this, (and doing homework by reading BRRRR book among other RE books and listening to BP podcasts), I have some questions that I would like your thoughts on.

1. Might be too silly (like I said I've very new to this). I wanted to change windows, sliding doors and new paint done before moving in. Do I get one contractor to get such minor job? Do I get different people to do different jobs? Which is more cost and time efficient? Can someone lead me to the right direction how to go about this?

2. Eventually, I want to get the kitchen and bathroom done. I might have to get one area/room done at a time depending on budget. When I get bids, can I ask for a bid for both even though I know I might have just want to get one area/room done at  a time? 

3. With inflation so high, should I wait to get the updates done and see where things land? With the talk of possible recession, am I right in thinking there may be less renovations/remodels in the future, less demand for materials and more workers available which can lead to these updates being less expensive? or am I overthinking it?

Closing date is in a week. Then I plan to live in this condo for 2 or 3 years depending on the market then planning on turning it into a rental. Thank you for reading! 

Hello everyone, just wondering now that the interest rates and housing prices have risen, is the SD market still as hot as it was 3-4 months ago? Are people still purchasing condos $100K over asking? Are people still seeing dozens of offers on a condo/townhouse? I've looked at Redfin and saw few active properties staying longer than 20 days but I also don't know what's going on in the backend. I know it can differ per price point but just wondering if someone can give insights on how the market is for $400-600K purchase. Thank you!

Hi Chris, 

I just got a call back from a lady in the planning department. She confirmed the cap is at 12% of Single Family Dwellings which is 780 permits. Today, the number of active permits + pending is at 350. 

Hi Chris, do you have any updates on this? I saw a post in another group mentioning the cap is at 12% total number of SFH and now it's at 7%. I've tried to call the city but haven't gotten to talk to anyone yet.

Thank you so much, you definitely understand my way of thinking. I don't mind to do extra work, (because I'd have to work extra W2s if I push to buy house hack now). Exactly my thinking of doing a STR/VR and self manage, get more returns to get more income to get a primary that I can house hack later. I know numbers are different, but can I ask how long it took for you to gain your capital back after your first rental? I listened to Avery Carl's episodes and it just made me realize STR/VR is definitely but returns are higher and I can scale better.

Hi Swanny, congratulations on being finally free! I just listened to your episode and I learned so much! Like you, I have been reading all the books I can get my hands into. If you are teaching a class on real estate investing, I'd like to sign up! :)

Your idea of getting rental property income replacing W2 income is definitely my goal. Some markets I'm looking at are near tourist spots in California and so STR/Vacation rental route can make great returns. I know it's a lot of work but based on what I've done calculating and analyzing, it can put me in a better financial spot at this time vs paying a higher mortgage with a condo in SD. There may be more in MLS but I just looked at Zillow and there are only 12 properties available within the price range I'm comfortable with. There is just not enough inventory.

Thank you for responding. Hoping I can replicate your journey! 

You made a good point! :) It made me reconsider investment property first after one podcast when David Greene suggested to one listener that if you buy a primary residence, then get the equity out then buy a house hack every couple of years then move and rent the previous one, is the easiest, simplest model to go. And since San Diego market is almost guaranteed appreciation, my thought was to follow this idea.

What do you think?

Thank you for all your responses! I have learned so much and really considering your points. I find it will be so much harder to house hack in San Diego because of the how much prices are going for, even for a 2 bedroom condo. Add this to the very hot market, 2 condos I was following sold after a few days for $30K over asking price. This is why I looked into investing in other places. I'm following few markets right now, 2 in California near very famous vacation areas, and if I go on STR route, I can cash flow conservatively $2K/month. I used different STR calculators, one of which was Avery Carl's. And the markets being in California, they are projected to appreciate.

@Emy Bernardo I did hear about it and that is also why I am having this dilemma now. I also used to be a travel nurse so I know what they are looking for, but there are a lot of options in SD so I'm also considering a higher vacancy rate.

@Twana Rasoul Thank you for sharing your great points. I am still undecided if I want to be here in SD for long term but I will definitely be here for the next couple of years. I do consider that appreciation > cash flow so I'm really looking at what is the best option for me.

Thank you again so much!