STARTING OUT (House hacking, where to invest, advice)
Member since 2024 · 1 post · 2 votes
STARTING OUT (House hacking, where to invest, advice)
Most Popular Reply
Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votesThis is a challenging market for real estate. I am a Dan Diego RE investor and most of my purchases were easy to see that they would make money. The difficulty was not finding properties that would make money, it was selecting the property that would make the most money. Unfortunately the market is different today.
however, a patient house hacker is one of the more likely strategies to work.
Typically what @Samuel Diouf suggested will not work, unless you also include a significant and successful value add, for a few reasons 1) debt to income requirements likely will provide a means to get a loan on a 2nd property. 2) saving 5% for OO down in Orange County on MF likely means at least $50k with closing costs. 3) the home if purchased rent ready off mls will still be cash flow negative after a year (and 2 years, 3 years, … at some point it will have positive cash flow but I would not expect it in less than 3 years on rent ready property.
If you have questions on San Diego RE market, you can PM me. I stay north of hwy 8 because I live in north county but I believe the markets most likely to out perform San Diego general RE market are all in South Bay. West Chula Vista because of the bay front redevelopment and because it is the only market I am aware that near the bay or ocean is cheaper than inland. Imperial beach because it is cheapest beach RE for ~200 miles for various reasons but a big one is the sewer issue. The sewer issue has existed for 50 years but with increased population it keeps getting worse. It has never had as much publicity and clout at solving the problem than now. Still it will be a long time to fully solve but the RE prices today are based on a severe sewage issue. It should start improving and as it improves prices are likely to rise faster than the San Diego market. South Otay near brown field. Today brown field is one of many secondary airports but it has 2 things going for it. A multi decade already approved development effort. An existing CBP for small aircraft. Combine these 2 and brown field is likely to set itself apart from the other local secondary airports.
Best wishes
4 Replies
- Realtor · Oceanside, CA · Member since 2020 · 43 posts · 20 votes2y
Hi Freddy,
Welcome to the community! I can totally relate—I’m also a bartender, working towards financial freedom while living in San Diego.
House hacking could be a solid strategy for you, especially as a first-time homebuyer. With your saved capital and no major obligations like high rent, you’re in a good position to make a smart move. If you can find a house or duplex where rental income covers a significant portion of the mortgage, it could help you build equity while minimizing your living expenses.
I'd recommend looking into first-time homebuyer programs in your area, and as always, make sure the numbers work for you. Managing tenants comes with its own challenges, but it's definitely a viable option to get started in real estate.
Wishing you the best on your journey, and feel free to reach out if you ever want to chat more about it!
Best,
Erick
(San Diego) - 2ySamuel DioufBusiness MemberReal Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
Hey Freddy, house hacking is a very powerful strategy. Especially if you're willing/able to move to the next deal every year.
If you buy a new house-hack every year for 5 years, that's an additional 10 rental units added to your portfolio.
Reafco - Samuel Diouf528 Reviews - 2yDan H.Pro MemberInvestor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
This is a challenging market for real estate. I am a Dan Diego RE investor and most of my purchases were easy to see that they would make money. The difficulty was not finding properties that would make money, it was selecting the property that would make the most money. Unfortunately the market is different today.
however, a patient house hacker is one of the more likely strategies to work.Typically what @Samuel Diouf suggested will not work, unless you also include a significant and successful value add, for a few reasons 1) debt to income requirements likely will provide a means to get a loan on a 2nd property. 2) saving 5% for OO down in Orange County on MF likely means at least $50k with closing costs. 3) the home if purchased rent ready off mls will still be cash flow negative after a year (and 2 years, 3 years, … at some point it will have positive cash flow but I would not expect it in less than 3 years on rent ready property.
If you have questions on San Diego RE market, you can PM me. I stay north of hwy 8 because I live in north county but I believe the markets most likely to out perform San Diego general RE market are all in South Bay. West Chula Vista because of the bay front redevelopment and because it is the only market I am aware that near the bay or ocean is cheaper than inland. Imperial beach because it is cheapest beach RE for ~200 miles for various reasons but a big one is the sewer issue. The sewer issue has existed for 50 years but with increased population it keeps getting worse. It has never had as much publicity and clout at solving the problem than now. Still it will be a long time to fully solve but the RE prices today are based on a severe sewage issue. It should start improving and as it improves prices are likely to rise faster than the San Diego market. South Otay near brown field. Today brown field is one of many secondary airports but it has 2 things going for it. A multi decade already approved development effort. An existing CBP for small aircraft. Combine these 2 and brown field is likely to set itself apart from the other local secondary airports.
Best wishes
- 2yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
House hacking is a practical and low-risk way to start a real estate career. Assess your savings, budget, and eligibility for homebuyer programs. Explore financing options like FHA, USDA, or VA loans, and consider house hacking strategies like duplexes, triplexes, or quadplexes. Research properties in high rental demand areas and consider long-term goals. Continue to educate yourself through books, podcasts, and forums.
Good luck!
NETWORTH BUILDERS5236 Reviews
Join the conversationCreate a free account to reply, vote on answers and follow this thread.