All Forum Posts by: Summer Noyes

Can anyone recommend a good and reasonably priced place to get an insurance quote for my first condo rental. We are in escrow on our first investment property, which is a condo. I got a quote from an agent who went with Traveler's and I was quoted $1,034/ yr for a 2b/2ba condo. 100k dwelling/500k personal liability/49k for loss of use with $1,000 deductible. Then I got a quote with AAA for 147k dwelling/1million personal liability and 30k loss of use for $338/yr because I have other policies with them. Only to find out the underwriter doesn't insure rental condos, only SFR rentals. I feel like there's got to be an in between. If it matters, I'm in the San Diego area. Thanks in advance.

Hello,

Just starting out in San Diego, which is a difficult market and I'm looking at my first REI in a condo. Mostly because this is what I can afford in this area and because I take some comfort in knowing that my exterior maintenance, some utilities, and amenities are taken care of for me. I'm analyzing a deal and come up with different answers because of what the property will potentially sell for. Meaning, do you always offer below asking price? If so, how much under? I feel like you should always offer below, because you might get lucky. However, units in this area are flying off the self within 5-10 days and seem to be selling within a few thousand or for the asking price. I happen to know that this unit was in a "pre-forclosure" state and is now on the market and vacant. I don't doubt it will go quickly. It needs slight updating (refinish cabinets, a new refrigerator, maybe paint). Seems like other condos in the area that sell at asking price are completely redone. I can offer the seller a conventional loan that I am already pre-approved for, along with my 20% down in hand and a quick close...but probably a lot of people can. Depending on where the price lands, I stand to be anywhere from $200 cash positive/month to breaking even. After listening to the Webinar today, it seems like that's not bad for your first rental. Homes in this area have been appreciating on average 6% over the last few years. Thanks in advance for any advice on this matter.

I'm a newbie to rental real estate investing and I'm doing my research and education. I've read and listened to some books and podcasts, but I'm sorry I'm a little confused about the 1% rule. As I understand it, if the rent comes out to 1% or more of the purchase price, that is a short cut to assume it will be a profitable rental. I realize it's only a short cut and that all expenses should be calculated. I just want to be sure its the purchase price and not the loan amount that I'm to use in the equation. Meaning if the property is $100k and I put down $20k, the 1% is based off the $100k and not the $80k. When does this rule not apply? I am considering property in CA where if I bought a $500k, 3bd/2ba home, there is no way I'm getting $5,000/month. I might make a slight + cash flow, but I'm looking down the line to 5-10 years from now when this property appreciates, because of community improvements, and I sell it. Any input is greatly appreciated. Thank you.

Thank you everyone for your input.

Hello All,

I'm new to investing in real estate and I am seriously considering providing Section 8 housing here in San Diego, CA. My question, that I can't seem to find an answer to is if HUD will give you a voucher for 70% of the rental price can I accept services or other forms of payment from the renter for their 30% or do I have to show that they paid me? For instance, say the renter will do the landscaping and I would therefore reduce their 30% obligation by a certain amount each month. Is that legal? Thanks for any input.

Thanks everyone for the input. I wish that house hacking was an option for us, but we have a 6 year old and my 69 yr old mother lives with us. I'll definitely look into Tucson. I appreciate all the information.

Hi There,

My name is Summer and I am a TRUE newbie in San Diego. I've been a homeowner 3 times now, but never an investor so to speak. My husband and I are looking to start Real Estate investing, which can be challenging in a market like San Diego. While we've saved up, we don't have a ton of $ to drop on a property. We're looking at starting small with something like a condo to produce + cash flow and work our way up to multi-family units. Right now, we're thinking a buy & hold might be our best option as long as it brings some slight + cash flow and hold out for a little appreciation and buy down on mortgage. There's also areas outside of San Diego, but it seems like everything in So Cal is expensive. I would love to BRRRR, but right now in So Cal, that seems difficult. I recently listened to a BiggerPockets podcast, and it mentions "what bottlenecks you?" For us, its enough $ to get in the game. Hard money is hard to come buy as a first time investor in this economy as I understand it as well. Not against going out of state (within 4-6 hours drive time) to find a + cash flow or BRRRR. Any insight to my thought process would be GREATLY appreciated. Take care everyone.