Multifamily in San Diego

[Cathy Li]

Hi BP,

Looking to buy the first multifamily in San Diego. House hacking and potentially doing long-term / short-term rental.

What's a good area to buy around 700k - 1M with good cash flow? Is there any regulation to pay attention to? Some areas might not allow short-term rental.

Also looking for agents and lenders that specialize in multifamily investing. Wanted to use projected rental income to qualify for the house so want the explore the possibilities. 

Thank you!

[Dan H.]

Quote from @Cathy Li:

Hi BP,

Looking to buy the first multifamily in San Diego. House hacking and potentially doing long-term / short-term rental.

What's a good area to buy around 700k - 1M with good cash flow? Is there any regulation to pay attention to? Some areas might not allow short-term rental.

Also looking for agents and lenders that specialize in multifamily investing. Wanted to use projected rental income to qualify for the house so want the explore the possibilities. 

Thank you!

High LTV properties in San Diego virtually always have initial negative cash flow when properly allocating for expenses. My view is working class areas have better initial cash flow than white collar areas.

city of San Diego has passed STR quotas. These STR quotas provide existing STRs priority making it very challenging to get a permit for a new STR in the city of San Diego. There is an anti-STR sentiment in many/most of the most desirable STR locations. Make sure you not only know the STR regulations, but also the STR sentiment as anti-STR sentiment often leads to Anti-STR regulations.

Good luck