Cash flow rental or a place for your parent?- Financial Advisor help?

General Real Estate Investing
2yFollow

Cash flow rental or a place for your parent?- Financial Advisor help?

Flavia Vangelotti
New to Real Estate · San Diego, CA · Member since 2024 · 22 posts · 5 votes

Hello again! My husband and I have narrowed down our options and I would love some feedback from all of you wonderful people.  To give some background, we currently live in San Diego and have 3 children between the two of us. We own our home with a pretty low rate from 2020 and also put around $800/month towards my mom's apartment rent. We have enough capital now to purchase a property and and we are blessed to have capital left over every month as well, which we typically invest in CDs.

Here are our current options: 

1-Buy a turnkey place that has nothing to do with mom for cash flow of $200-300/month plus potential appreciation, overall ROI of 15-20%

2- Ask mom if she would move closer to us in San Diego, buy a small place here, have zero cashflow but at least we have another property in a great appreciating market and are no longer spending the $800 on her rent

3- Buy a place for her in Orlando, same scenario as above but obviously a lesser mortgage since its FL and not CA

We found a great turnkey company we liked so if we do option one I think we will use them, but it just feels like if we do that we will still be tossing away what we currently pay on her rent. 

Would also love any financial advisors you have previously worked with and had a great experience with. Thank you so much! 

0Reply
128 views

Most Popular Reply

Twana RasoulBusiness Member
Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
2y

You are typically paying retail or higher for turnkey so can't expect much appreciation growth in the near term and cashflow on paper vs reality are 2 completely different things.

Compass5122 Reviews
WebsiteView Page
3Reply
See this reply in the discussion

21 Replies

Jump to latestLatest
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    2y

    1. Have her move in with you. 

    2. Get her a nice place in Mexico on the ocean. A few minutes drive from the border. 

    3. Bring her to San Diego put her on section 8.

    Good Luck.

    2Reply
  • Flavia Vangelotti
    OP
    New to Real Estate · San Diego, CA · Member since 2024 · 22 posts · 5 votes
    2y
    Quote from @Scott Mac:

    1. Have her move in with you. 

    2. Get her a nice place in Mexico on the ocean. A few minutes drive from the border. 

    3. Bring her to San Diego put her on section 8.

    Good Luck.


     haha

    I dont think any of those options work for us at this time. We are hoping to start investing in real estate while hopefully also getting my mom a new place, but if that doesnt make financial sense then we will just get a rental property somewhere else 

    1Reply
  • Clint Jusino
    Dallas · Member since 2020 · 154 posts · 95 votes
    2y
    Quote from @Flavia Vangelotti:
    Quote from @Scott Mac:

    1. Have her move in with you. 

    2. Get her a nice place in Mexico on the ocean. A few minutes drive from the border. 

    3. Bring her to San Diego put her on section 8.

    Good Luck.


     haha

    I dont think any of those options work for us at this time. We are hoping to start investing in real estate while hopefully also getting my mom a new place, but if that doesnt make financial sense then we will just get a rental property somewhere else 

    Have you thought of building an ADU for your mother? I know it's popular in CA. Momma will be close and you won't have to spend as much since houses in CA are insane.
    1Reply
  • Flavia Vangelotti
    OP
    New to Real Estate · San Diego, CA · Member since 2024 · 22 posts · 5 votes
    2y
    Quote from @Clint Jusino:
    Quote from @Flavia Vangelotti:
    Quote from @Scott Mac:

    1. Have her move in with you. 

    2. Get her a nice place in Mexico on the ocean. A few minutes drive from the border. 

    3. Bring her to San Diego put her on section 8.

    Good Luck.


     haha

    I dont think any of those options work for us at this time. We are hoping to start investing in real estate while hopefully also getting my mom a new place, but if that doesnt make financial sense then we will just get a rental property somewhere else 

    Have you thought of building an ADU for your mother? I know it's popular in CA. Momma will be close and you won't have to spend as much since houses in CA are insane.
    Our home is a townhouse without a yard unfortunately 
    0Reply
  • Jeremiah Phipps
    Lender · Sarver PA · Member since 2024 · 61 posts · 16 votes
    2y

    Hello,

    Thank you for reaching out with your financial considerations. Your dedication to optimizing your assets is commendable, and it's essential to explore options that align with your goals.

    Each of the options you've outlined presents opportunities to leverage your resources effectively. Option 1 offers the potential for immediate cash flow and appreciation, which can significantly contribute to your overall financial health. However, it's important to weigh this against the ongoing expenditure on your mom's rent.

    Options 2 and 3 involve reallocating your funds towards purchasing properties, potentially in high-appreciating markets like San Diego or Orlando. By doing so, you could redirect the funds currently spent on rent towards acquiring assets that have the potential to generate long-term wealth through appreciation and other investment returns.

    When considering partnering with a turnkey company, ensuring their reliability and alignment with your investment objectives is crucial.

    Regarding financial advisors, seeking recommendations from trusted sources can help you find professionals with expertise in real estate investments who can assist you in making informed decisions that support your financial objectives.

    In summary, prioritizing the acquisition of income-generating assets can play a vital role in building wealth and achieving financial security over the long term. 

    Best regards, 

    Jeremiah Phipps 

    1Reply
  • Dan B.
    San Diego, CA · Member since 2016 · 19 posts · 6 votes
    2y

    @Flavia Vangelotti how close to San Diego does Mom need to be? There are duplexes for sale in Big Bear Lake. Mom could live in 1 side, and you could rent the other one out via airbnb or vrbo. Place could be open to you and your family to go when it's not rented.

    Also, I'm a ln investor from San Diego. Do you mind sharing this turnkey company you like?

    1Reply
  • Christopher Holt
    Member since 2021 · 30 posts · 11 votes
    2y
    Quote from @Scott Mac:

    1. Have her move in with you. 

    2. Get her a nice place in Mexico on the ocean. A few minutes drive from the border. 

    3. Bring her to San Diego put her on section 8.

    Good Luck.


    Hi Flavia, which turnkey service are you using? I would double check their numbers because 300 cash flow seems high to me, but if it checks out I want to see if they’re in my Tampa market. 

    0Reply
  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 695 votes
    2y

    Hey Flavia, the decision about your mom is personal, but you can definitely grow and diversify faster in Florida. Just a reality check from my experience owning around 30 properties: getting a 15% ROI is not easy anymore. You'd be lucky to find anything close to 10% these days. Keep this in mind as you weigh your options. Good luck!

    Graystone Investment Group517 Reviews
    WebsiteView Page
    1Reply
  • Flavia Vangelotti
    OP
    New to Real Estate · San Diego, CA · Member since 2024 · 22 posts · 5 votes
    2y
    Quote from @Dan B.:

    @Flavia Vangelotti how close to San Diego does Mom need to be? There are duplexes for sale in Big Bear Lake. Mom could live in 1 side, and you could rent the other one out via airbnb or vrbo. Place could be open to you and your family to go when it's not rented.

    Also, I'm a ln investor from San Diego. Do you mind sharing this turnkey company you like?


     I wish Big Bear was doable but thats way too far of a drive, although I do love it there myself. I was thinking the furthest would be Temecula if we did move her here. 

    The company we like the most so far for is REI Nation

    0Reply
  • Flavia Vangelotti
    OP
    New to Real Estate · San Diego, CA · Member since 2024 · 22 posts · 5 votes
    2y
    Quote from @Jorge Vazquez:

    Hey Flavia, the decision about your mom is personal, but you can definitely grow and diversify faster in Florida. Just a reality check from my experience owning around 30 properties: getting a 15% ROI is not easy anymore. You'd be lucky to find anything close to 10% these days. Keep this in mind as you weigh your options. Good luck!


     Thank you for that reality check! Its quite difficult sometimes to know what is real and what isnt 

    0Reply
  • Twana RasoulBusiness Member
    Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
    2y

    @Flavia Vangelotti The highest overall ROI is going to be here in San Diego and the lowest ROI would be turnkey

    Compass5122 Reviews
    WebsiteView Page
    1Reply
  • Flavia Vangelotti
    OP
    New to Real Estate · San Diego, CA · Member since 2024 · 22 posts · 5 votes
    2y
    Quote from @Twana Rasoul:

    @Flavia Vangelotti The highest overall ROI is going to be here in San Diego and the lowest ROI would be turnkey


     What makes you say the lowest would be the turnkey?

    0Reply
  • Twana RasoulBusiness Member
    Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
    2y

    You are typically paying retail or higher for turnkey so can't expect much appreciation growth in the near term and cashflow on paper vs reality are 2 completely different things.

    Compass5122 Reviews
    WebsiteView Page
    3Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    2y
    Quote from @Flavia Vangelotti:

    Hello again! My husband and I have narrowed down our options and I would love some feedback from all of you wonderful people.  To give some background, we currently live in San Diego and have 3 children between the two of us. We own our home with a pretty low rate from 2020 and also put around $800/month towards my mom's apartment rent. We have enough capital now to purchase a property and and we are blessed to have capital left over every month as well, which we typically invest in CDs.

    Here are our current options: 

    1-Buy a turnkey place that has nothing to do with mom for cash flow of $200-300/month plus potential appreciation, overall ROI of 15-20%

    2- Ask mom if she would move closer to us in San Diego, buy a small place here, have zero cashflow but at least we have another property in a great appreciating market and are no longer spending the $800 on her rent

    3- Buy a place for her in Orlando, same scenario as above but obviously a lesser mortgage since its FL and not CA

    We found a great turnkey company we liked so if we do option one I think we will use them, but it just feels like if we do that we will still be tossing away what we currently pay on her rent. 

    Would also love any financial advisors you have previously worked with and had a great experience with. Thank you so much! 


    buy SF with ADU in san diego

    0Reply
  • Flavia Vangelotti
    OP
    New to Real Estate · San Diego, CA · Member since 2024 · 22 posts · 5 votes
    2y
    Quote from @Carlos Ptriawan:
    Quote from @Flavia Vangelotti:

    Hello again! My husband and I have narrowed down our options and I would love some feedback from all of you wonderful people.  To give some background, we currently live in San Diego and have 3 children between the two of us. We own our home with a pretty low rate from 2020 and also put around $800/month towards my mom's apartment rent. We have enough capital now to purchase a property and and we are blessed to have capital left over every month as well, which we typically invest in CDs.

    Here are our current options: 

    1-Buy a turnkey place that has nothing to do with mom for cash flow of $200-300/month plus potential appreciation, overall ROI of 15-20%

    2- Ask mom if she would move closer to us in San Diego, buy a small place here, have zero cashflow but at least we have another property in a great appreciating market and are no longer spending the $800 on her rent

    3- Buy a place for her in Orlando, same scenario as above but obviously a lesser mortgage since its FL and not CA

    We found a great turnkey company we liked so if we do option one I think we will use them, but it just feels like if we do that we will still be tossing away what we currently pay on her rent. 

    Would also love any financial advisors you have previously worked with and had a great experience with. Thank you so much! 


    buy SF with ADU in san diego

    Something like that here in San Diego would be insanely expensive unfortunately
    0Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    2y
    Quote from @Flavia Vangelotti:
    Quote from @Carlos Ptriawan:
    Quote from @Flavia Vangelotti:

    Hello again! My husband and I have narrowed down our options and I would love some feedback from all of you wonderful people.  To give some background, we currently live in San Diego and have 3 children between the two of us. We own our home with a pretty low rate from 2020 and also put around $800/month towards my mom's apartment rent. We have enough capital now to purchase a property and and we are blessed to have capital left over every month as well, which we typically invest in CDs.

    Here are our current options: 

    1-Buy a turnkey place that has nothing to do with mom for cash flow of $200-300/month plus potential appreciation, overall ROI of 15-20%

    2- Ask mom if she would move closer to us in San Diego, buy a small place here, have zero cashflow but at least we have another property in a great appreciating market and are no longer spending the $800 on her rent

    3- Buy a place for her in Orlando, same scenario as above but obviously a lesser mortgage since its FL and not CA

    We found a great turnkey company we liked so if we do option one I think we will use them, but it just feels like if we do that we will still be tossing away what we currently pay on her rent. 

    Would also love any financial advisors you have previously worked with and had a great experience with. Thank you so much! 


    buy SF with ADU in san diego

    Something like that here in San Diego would be insanely expensive unfortunately

     Or find building with 5 rooms , and create separate entry …


    maybe I am the only one that can find all these hidden gem in Bay Area lol

    0Reply
  • Flavia Vangelotti
    OP
    New to Real Estate · San Diego, CA · Member since 2024 · 22 posts · 5 votes
    2y
    Quote from @Carlos Ptriawan:
    Quote from @Flavia Vangelotti:
    Quote from @Carlos Ptriawan:
    Quote from @Flavia Vangelotti:

    Hello again! My husband and I have narrowed down our options and I would love some feedback from all of you wonderful people.  To give some background, we currently live in San Diego and have 3 children between the two of us. We own our home with a pretty low rate from 2020 and also put around $800/month towards my mom's apartment rent. We have enough capital now to purchase a property and and we are blessed to have capital left over every month as well, which we typically invest in CDs.

    Here are our current options: 

    1-Buy a turnkey place that has nothing to do with mom for cash flow of $200-300/month plus potential appreciation, overall ROI of 15-20%

    2- Ask mom if she would move closer to us in San Diego, buy a small place here, have zero cashflow but at least we have another property in a great appreciating market and are no longer spending the $800 on her rent

    3- Buy a place for her in Orlando, same scenario as above but obviously a lesser mortgage since its FL and not CA

    We found a great turnkey company we liked so if we do option one I think we will use them, but it just feels like if we do that we will still be tossing away what we currently pay on her rent. 

    Would also love any financial advisors you have previously worked with and had a great experience with. Thank you so much! 


    buy SF with ADU in san diego

    Something like that here in San Diego would be insanely expensive unfortunately

     Or find building with 5 rooms , and create separate entry …


    maybe I am the only one that can find all these hidden gem in Bay Area lol

    You might be lol 
    things like that here, at least in our area, are not affordable as a side investment for a typical person 
    0Reply
  • Arlen Chou
    Investor · Los Altos, CA · Member since 2014 · 942 posts · 1k+ votes
    2y

    @Flavia Vangelotti I would get a place for mom in FL for several reasons. But primarily for the efficiency of money. The money you save in rent is post tax income for you. Any income that comes in for a rental you own will be pre-tax money. Your depreciation and other write-offs for the rental probably will not offset income, so you will probably have some tax burden to deal with. Your income that is spent on the rent for your mother is already taxed, so you are basically getting taxed from 2 different directions. 

    If you get a place for your mother, those post tax dollars stay in your pocket. Additionally, you don't have to worry about tenants or evictions, etc. Basically, I believe that at the start of your real estate journey, especially if you have young kids, it is better to start off down the path of least resistance. Your mother will hopefully be a really good tenant, and you won't have any additional income for Uncle Sam to tax.

    Good luck!

    0Reply
  • Tania Reuben
    Realtor · Southern California · Member since 2019 · 53 posts · 8 votes
    2y

    Would San Diego cashflow if you rented it out?

    I hate to suggest this option in CA, but if the numbers work, it might be worth exploring putting a tenant in the townhouse, and getting a larger property with an ADU for less money in Temecula, then your family and mom move into the house?

    0Reply
  • Flavia Vangelotti
    OP
    New to Real Estate · San Diego, CA · Member since 2024 · 22 posts · 5 votes
    2y
    Quote from @Tania Reuben:

    Would San Diego cashflow if you rented it out?

    I hate to suggest this option in CA, but if the numbers work, it might be worth exploring putting a tenant in the townhouse, and getting a larger property with an ADU for less money in Temecula, then your family and mom move into the house?


    I wish it would work, but not at these rates. We also can't live in Temecula, have kiddos in school with other parents(second marriage). I think we decided to just leave mom where she is and keep paying her rent and just invest in SFH elsewhere, maybe TN.

    0Reply
  • Lisa Rechsteiner
    Member since 2024 · 25 posts · 10 votes
    2y

    Why TN? I’m curious since my brother who lives there says property values are soaring.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free