All Forum Posts by: Scott Albritton

Hi @Hai Le this site might be a good place to start. Looks like there are some solutions out there. https://www.flows.com/residential-water-meters-sub-meters/

Assuming $4,400 in monthly rental income = $53,800 for the year. At $600k, you'd be at a 8.36% CAP RATE this wouldn't be taking into account any other income from the property..

What are typical CAP RATES for the area? General rule of thumb, higher the CAP RATE, higher the risk. Not always, but very common.

Quote from @Ari Lagunas:

Hi everyone,

I’m based in San Diego and looking to purchase my first investment property by March 2025. I earn around $15k/month from my business, but my income is somewhat variable, which might make securing financing challenging. I'm exploring different strategies and would appreciate your insights.

• - What are your thoughts on using an FHA loan with a 3.5% down payment for a multifamily property?
• - Is buying a foreclosure a viable strategy for me, and what should I be aware of?
• - My family lives in Indiana. Would it make sense to buy my first investment property here in California, and to build the rest of my portfolio in Indiana? That way, the flights be considered a business expense?
• - If I were to buy in Indiana, how should I go about finding a reliable property management agency?
• - Would partnering with someone be advantageous in this situation?
• - Should I purchase the property through an LLC for potential tax benefits?
• - Do you think it's a good idea to start a whole life policy and use the cash value to fund the down payment?
• - Are there alternative financing options, like private lenders or hard money loans, that could be suitable for someone with fluctuating income?
  - What tax credits or incentives might be available for first-time investors or those purchasing multifamily properties? How can I take full advantage of these?

I’m open to creative strategies and any other suggestions you might have. I'm just trying to think outside the box. Thanks in advance for your help!

 Hi Ari, 

You've presented many different options and ideas for possible ways to get started investing. Have you spoken with a lender to see what you'd qualify for? I would recommend to start there and branch out as needed.

Good luck! If you'd like to learn more about the day to day from my experience, let me know, happy to help if I can.

Quote from @Alan Kopmeyer:

Quote from @Scott Albritton:

@Alan Kopmeyer what are the top 3 things you'd like to initially learn about investing in rentals and flips? 

Are you planning to owner occupy? 

Interested in Short term rentals, mid term or long term? 

Hey Scott, so I am like in the discovery/educational phase. I'm 50 years old and would like to retire in the next decade. I have a decent 401k/pension & a solid income. I am a homeowner, bought in the Fall of 2012. I'm throwing around the idea of renting my home that I live in and buying a new one. Also I have started going to classes and seminars through SDCIA. So in short I'm open to ideas...

That's great! Education is always a great place to start. 

Is there any particular reason you'd like to move? 
If you were to move, where would you go? 

Have you ran the numbers on your current property to see what it'll likely cash flow as a long term rental? How does that number impact your retirement? 

What do you need to be making monthly on average to retire by 60 years old?

Happy to help wherever I can!

@Aidan Chaim most agents in the residential space focus on single family home sales and purchases.. With that being said, there are brokerages who focus on multi-family investments and those typically will focus on Duplexes and up. They're out there, you just wont see as many focused in the investment space as you will in the residential space. 

@Alan Kopmeyer what are the top 3 things you'd like to initially learn about investing in rentals and flips? 

Are you planning to owner occupy? 

Interested in Short term rentals, mid term or long term? 

Hi Sam, 

Sounds like you live in OB.

It'll likely be tough to find a property in 92107 that'll pencil out in the 2-4 unit space. Not impossible but chances are slim. 

With that being said, you mentioned wanting to stay in the area, how important is that to you? Is it a must? If so, your choices become much more limited.

Any other areas of interest? 

Are you open to the idea of building units (ADUs) on a single family lot? 

As you've mentioned, SD is not the place to focus on cash flow, especially at the moment. If you were able to find a place that allowed you cover at least a sizable chunk of the monthly expenses, and keep your monthly outlay at or around your current position I'd say that's a win.

Welcome to San Diego! 

Start with your goals. 

What are you looking to accomplish?

When would you like to accomplish it by?

Where do you ideally want to live/invest?

What is risk tolerance?

How much do you have to invest and what returns are you expecting to see?

Do you want to actively manage? STR, Mid-term, long term, house hack, etc.?

Frustrating I'm sure.. but it's very easy to find anyone's number these days. Transferring to LLC isn't likely going to change much.