If you are looking to house hack in socal....

14 Replies

I have successfully done three house hacks with little money down (owner financing) on each one. There are some hoops to jump through and things to know to get to the point I have gotten to within the past three years. I'm also now looking for homes where I can build an ADU on them and learning the requirements for those. There are a million ways to make your home an asset rather than a liability (like Grant Cardone preaches...love grant though). My homes are in Riverside, Corona, and Santa Ana and I now know this can work nearly anywhere. If you have questions or are looking for ways to house hack...please run your questions by me.

I had lots of guidance on my first one from an experienced landlord and feel the need to pay it forward. 

Corona, Riverside I dont consider Socal. lol

Santa Ana is.

Yeah Grant Cardone is great but....

Like to hear how you found the owner financing?

Pros and Cons with that you found.

Thanks 

Good luck!

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@Thomas Van aken I'll bite... I'm always looking for a house hack opportunity in one of the San Diego beach communities; PB, OB, La Jolla, Point Loma, etc. Not interested in renting out rooms, but instead looking for a MFH where I can rent out the other units. I can't find any properties where I can make the numbers work. I am open to hearing your experiences on how to make it work.

@Nathan Maier Nathan it’s hard to make it work with a small down payment on multi family. You’ll still be paying your portion of the mortgage until you have some turn over and/or can bump up rents. I’m still in my upper 20’s so I can get away with doing the bedroom thing and honestly anyone can...money talks. The landlord who coaches me in doing this is 54 and still had all of his 8 rentals rented per bed because it makes way a lot more money, you have more control of the house...although it’s a bit more hands on.

Plus once you get all the beds rented you can build an ADU for yourself to live in and rent the house out.

@Thomas Van aken Renting the other bedrooms and sharing the common areas of the house I live in is not my idea of house hacking. In that case, I have a way to boost your ROI; buy a beat up van for $1000, park it in front of the house, live in it, and rent out your bedroom too. Money talks, right?

The problem with house hacking MFHs in SoCal is that prices are so high that you can rarely break even, let alone make any positive ROI, even after you pay yourself rent. Until the market corrects, it is tough to do better than renting here in SoCal and investing your capital in assets OOS, and not liabilities here locally.

@Nathan yeah to put 100k down to make $300 is a joke

In this market the highest since 2006... one has to find a rehab... and for a deal... cuz the banks buy them and still sell higher then profits can happen.

Corona, riverside, San Bernardino, high desert, inland empire are a whole different game than anything within 10 miles of the coast. Santa Ana (and all cities like it) is its own beast. Lots of deals to be bad out that way vs coastal cities. Good on you for making it work in CA. That stuff will pay off tremendously in the future! In my humble opinion.

@Nathan Maier $200/SF is actually on the middle-high side. I work for a general contractor but also constantly looks for opportunities to meet contractors...gas stations...doing work around the neighborhood...Instagram. Lots of quality guys out there and ways to get things a little cheaper...it’s all about connections

Originally posted by @Thomas Van aken :

@Nathan Maier Ehh I'll pass on the van idea Nathan lol. I like the creativity though...I'll stick to building an ADU that adds $400/SF of value for only $200/SF of build cost. You actually make money that way (once you refinance) rather than spending it with the van idea.

Have you actually added an ADU and got a refinance appraisal anywhere close to double your cost? We do value adds in San Diego area, we expect 100% return on our value add costs. We have looked at ADUs as value adds but have not actually done one because our projections do not return 100% so there have been better opportunities.

If you have added an ADU that got a refi appraisal double your cost can you PM me the address? I would be interested in pursuing this as an opportunity.

Thanks