All Forum Posts by: Tanner Marsey

I would agree with you in regards to prices and rents raising. Doubt you’ll ever see them trend downward over long periods of time.... lots of people moving out that way. 

I think this could be a midiocre deal right now that could end up being a great deal 5 years from now. Also, take everyone’s advice lightly but be super weary of the advice given by people that don’t live/operate in your market when it comes to Southern California.... it’s a whole different animal here.... 

If you’re a buy and hold, long term type of investor that is buying good deals then the next recession, whenever that may come, is a non-issue for you.

Sounds like a good deal... in Southern California.

Where is this property located? I don’t know if I would convert the garage. A huge reason people rent a house over an apartment is the garage space and the yard space.... remove those and you’ve shrunk you’re potential tenant pool by a lot. I would go for it. Give it five years and you’ll be glad you did. Plus you’ll be living there for 2.... rents will rise over that time period. Appreciation could be a factor.... time will tell.

You can be successful in Southern California if you’re in it for the long haul. Appreciation and rent increases will eventually run their course and you’ll have a winning property. That said, it’s hard to make money right off the bat. Buy and hold investors will take a temporary monthly loss and flippers will do jobs for next to nothing. Barrier to entry is extremely high as properties, even beaters, are expensive. (House behind my primary is for sale. Drug house. Complete gut job. Asking 485. Arv is 535, generously.) if you’re going to make a go of it here be prepared and able to take a monthly loss for 3ish years, at least.

Out of state isn’t a bad option it just presents certain challenges. Do whatever is necessary to mitigate them. IE fly out there a few times to look at neighborhoods/properties. Interview PMs, get referrals and buy good deals.

Whatever you decide on...good luck!

I’m so ready.... but for no other reason but the fact that maybe when it finally happens we can stop seeing these post EVERY. SINGLE. DAY.

I’d offer a small down payment along with x dollars per month for x amount of years.

He gets a chunk of change up front, plus monthly income which is important to a lot of retired people plus he gets to wash his hands of the property.

You get the property for a small fee up front, can still achieve cash flow, any improvements benefit you directly, you don’t tie up one of your traditional mortgages.

Everyone wins if the numbers make sense.

Let the market dictate. Plain and simple.

@Levi Lewis

North San Diego county has one. It’s held monthly in Oceanside. Tomorrow is actually the August meeting. Don’t recall the details but guest speaker is talking about tax strategies. I believe it’s 20 bucks to attend if you prepay online or 30 bucks at the door.

Buy your fourplex. Make sure it’s in a nice, solid B neighborhood. If things go south the people living in a class will be downgrading. Things keep going good.... the C class tenants will be upgrading. You’ll be good. Just don’t panic and fire sale the thing if we hit a speed bump.

“Don’t let the bastards grind you down”. Everyone is trying to help you out. Some people’s comments just come off a little more harsh or blunt than others. But there is something to take away from all of them.

As far as a STR in a recession... look at the area you're in. I live in Southern California and am currently considering a STR in big bear. A downturn might see a decrease, however, people from San Diego, Orange County and LA county all go to big bear and a lot of them tend to be upper middle class. If times are tight, they might not be going overseas this year but they're still gonna splurge for the big bear trip at a muuuuuch lower price point. Obviously, this isn't true in every market. But definitely something to consider.

Bottom line is Vacation STRs are riskier and more work but the pay off could be much greater. Plus you can get a lake house a few months or weeks outta the year. I’d say go for it. Buy it. Fix it. Market it. Use it. Make some money. Be able to come out of pocket if/when necessary.

As far as numbers... I am going looking at STRs as full year performance rather than the usual monthly used for LTRs. If my numbers are right we can cover 80% + of ALL expenses for the entire year from the busy season (3-4 months) alone.