New Investor in San Diego

15 Replies

Hello Bigger Pockets Community!

I’m a newer investor in San Diego and am looking to network and develop a team to put together deals.  I’ve been sitting back reading this site for a while and see that several of us (especially on the West Coast) are in the same boat.

  • We’re inspired to pursue Rich Dad’s dream and started by reading books, researching online and reading / listening to Bigger Pockets
  • We probably have some money, but not the kind that goes very far in Southern California
  • We curious about investing out-of-state but may not know which market to choose or who to trust
  • We feel a bit overwhelmed about the different options and can’t pinpoint where to start

A lot of that sounds like me too!  I’m a married father of three (all under 5 yrs) with a good job and a spouse who likes the idea of financial freedom but is risk averse when it comes to investing.  I have 4 deals under my belt (with a varying range of success) and have learned lessons from each.I’ve spent the last few years building my family and career and would now like to devote my energy into something that can finance my lifestyle without having to continue working for The Man.  Eventually I want to quit my job and live off passive income, but for now I want to continue building my portfolio.

Below are the different deals I’ve worked on:

Deal #1 (2004): Out of State Gut Rehab. Partnered with a college roommate to finance his project.  We were in way over our heads but still ended up making a few bucks.  We turned a dilapidated bakery into a 2 bedroom condo in Kansas City.  He was on the ground and I helped finance the deal.

Deal #2 (2006) Beach condo with no money down, in San Diego, at the peak of the market.  Yikes!  The mistakes were plentiful on this one, but after living there for 2 years, I was able to rent it for another 7, and learned a lot about being a landlord and the importance of cash flow.  I made it out of this one in 2016 when the market started to recover, but learned valuable lessons.

Deal #3 (2011) 1st SFH, primary residence.  As newlyweds, we started doing things right with this property.  We shopped for a long time, purchased conventionally and made additional mortgage payments.  Along with minor cosmetic fixes, we rehabbed the kitchen, a bath and all the floors, then sold the house 5 years later for a 40% profit, which we rolled into our next primary residence.

Deal #4 (2016-present): Invested in MFH Syndication in San Antonio:  I wanted to invest but was busy with 2 kids under 2 years old.  I’ve learned a lot about how deals are structured and marketing to investors while making quarterly cash flow.  The deal seems to be working, but I’m not learning as much and the returns don’t look like they’ll get me out of the hamster wheel.  It’s easy and completely passive, but I have no control and am not learning how to repeat the process on my own.

So there's my background. I'm interested in networking, developing a team and being added to buyer lists. If nothing else, I'd like to bounce around ideas with someone other than my infant son or dog. I still need to refine my criteria but I like the suggestions I read on this site. I'm drawn towards BRRRR and MFH, but am open to ideas that will accumulate cash flow. I like Phoenix, Vegas, and San Diego because of the proximity but am reluctant about the timing because those markets are red hot right now. Maybe the Midwest markets are a better play right now, but I'm looking for ideas.

I’ve learned a lot so far on Bigger Pockets and look forward to more interaction with you all.

All the best,

Mark Doty

Originally posted by @Mark Doty :

Hello Bigger Pockets Community!

I’m a newer investor in San Diego and am looking to network and develop a team to put together deals.  I’ve been sitting back reading this site for a while and see that several of us (especially on the West Coast) are in the same boat.

  • We’re inspired to pursue Rich Dad’s dream and started by reading books, researching online and reading / listening to Bigger Pockets
  • We probably have some money, but not the kind that goes very far in Southern California
  • We curious about investing out-of-state but may not know which market to choose or who to trust
  • We feel a bit overwhelmed about the different options and can’t pinpoint where to start

A lot of that sounds like me too!  I’m a married father of three (all under 5 yrs) with a good job and a spouse who likes the idea of financial freedom but is risk averse when it comes to investing.  I have 4 deals under my belt (with a varying range of success) and have learned lessons from each.I’ve spent the last few years building my family and career and would now like to devote my energy into something that can finance my lifestyle without having to continue working for The Man.  Eventually I want to quit my job and live off passive income, but for now I want to continue building my portfolio.

Below are the different deals I’ve worked on:

Deal #1 (2004): Out of State Gut Rehab. Partnered with a college roommate to finance his project.  We were in way over our heads but still ended up making a few bucks.  We turned a dilapidated bakery into a 2 bedroom condo in Kansas City.  He was on the ground and I helped finance the deal.

Deal #2 (2006) Beach condo with no money down, in San Diego, at the peak of the market.  Yikes!  The mistakes were plentiful on this one, but after living there for 2 years, I was able to rent it for another 7, and learned a lot about being a landlord and the importance of cash flow.  I made it out of this one in 2016 when the market started to recover, but learned valuable lessons.

Deal #3 (2011) 1st SFH, primary residence.  As newlyweds, we started doing things right with this property.  We shopped for a long time, purchased conventionally and made additional mortgage payments.  Along with minor cosmetic fixes, we rehabbed the kitchen, a bath and all the floors, then sold the house 5 years later for a 40% profit, which we rolled into our next primary residence.

Deal #4 (2016-present): Invested in MFH Syndication in San Antonio:  I wanted to invest but was busy with 2 kids under 2 years old.  I’ve learned a lot about how deals are structured and marketing to investors while making quarterly cash flow.  The deal seems to be working, but I’m not learning as much and the returns don’t look like they’ll get me out of the hamster wheel.  It’s easy and completely passive, but I have no control and am not learning how to repeat the process on my own.

So there's my background. I'm interested in networking, developing a team and being added to buyer lists. If nothing else, I'd like to bounce around ideas with someone other than my infant son or dog. I still need to refine my criteria but I like the suggestions I read on this site. I'm drawn towards BRRRR and MFH, but am open to ideas that will accumulate cash flow. I like Phoenix, Vegas, and San Diego because of the proximity but am reluctant about the timing because those markets are red hot right now. Maybe the Midwest markets are a better play right now, but I'm looking for ideas.

I’ve learned a lot so far on Bigger Pockets and look forward to more interaction with you all.

All the best,

Mark Doty

 Hello and welcome! Best of luck to you!

@Mark Doty

Welcome to the BP family! Glad you joined the best real estate investing website! Here are some recommendations for you:

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Wishing you the best!

Originally posted by @Mark Doty :

Hello Bigger Pockets Community!

I’m a newer investor in San Diego and am looking to network and develop a team to put together deals.  I’ve been sitting back reading this site for a while and see that several of us (especially on the West Coast) are in the same boat.

  • We’re inspired to pursue Rich Dad’s dream and started by reading books, researching online and reading / listening to Bigger Pockets
  • We probably have some money, but not the kind that goes very far in Southern California
  • We curious about investing out-of-state but may not know which market to choose or who to trust
  • We feel a bit overwhelmed about the different options and can’t pinpoint where to start

A lot of that sounds like me too!  I’m a married father of three (all under 5 yrs) with a good job and a spouse who likes the idea of financial freedom but is risk averse when it comes to investing.  I have 4 deals under my belt (with a varying range of success) and have learned lessons from each.I’ve spent the last few years building my family and career and would now like to devote my energy into something that can finance my lifestyle without having to continue working for The Man.  Eventually I want to quit my job and live off passive income, but for now I want to continue building my portfolio.

Below are the different deals I’ve worked on:

Deal #1 (2004): Out of State Gut Rehab. Partnered with a college roommate to finance his project.  We were in way over our heads but still ended up making a few bucks.  We turned a dilapidated bakery into a 2 bedroom condo in Kansas City.  He was on the ground and I helped finance the deal.

Deal #2 (2006) Beach condo with no money down, in San Diego, at the peak of the market.  Yikes!  The mistakes were plentiful on this one, but after living there for 2 years, I was able to rent it for another 7, and learned a lot about being a landlord and the importance of cash flow.  I made it out of this one in 2016 when the market started to recover, but learned valuable lessons.

Deal #3 (2011) 1st SFH, primary residence.  As newlyweds, we started doing things right with this property.  We shopped for a long time, purchased conventionally and made additional mortgage payments.  Along with minor cosmetic fixes, we rehabbed the kitchen, a bath and all the floors, then sold the house 5 years later for a 40% profit, which we rolled into our next primary residence.

Deal #4 (2016-present): Invested in MFH Syndication in San Antonio:  I wanted to invest but was busy with 2 kids under 2 years old.  I’ve learned a lot about how deals are structured and marketing to investors while making quarterly cash flow.  The deal seems to be working, but I’m not learning as much and the returns don’t look like they’ll get me out of the hamster wheel.  It’s easy and completely passive, but I have no control and am not learning how to repeat the process on my own.

So there's my background. I'm interested in networking, developing a team and being added to buyer lists. If nothing else, I'd like to bounce around ideas with someone other than my infant son or dog. I still need to refine my criteria but I like the suggestions I read on this site. I'm drawn towards BRRRR and MFH, but am open to ideas that will accumulate cash flow. I like Phoenix, Vegas, and San Diego because of the proximity but am reluctant about the timing because those markets are red hot right now. Maybe the Midwest markets are a better play right now, but I'm looking for ideas.

I’ve learned a lot so far on Bigger Pockets and look forward to more interaction with you all.

All the best,

Mark Doty

Hi Mark

Your initial few points really spoke to me and I'm sure many others. I am a real estate investor from South Africa and will shortly be relocating to San Diego.

My primary interest is the BRRRR method with an emphasis on small multifamily properties (2-4 units). I am also looking to house hack for when I arrive(Dec). I understand these opportunities don't come around all the time but I am determined to make them happen. I am currently devoting all my time to find deals in the SD area and have not looked out of state YET. However, that will change soon. I currently have one SFR in South Africa which is going along quite nicely but I don't know how beneficial it will be to my San Diego goals because of fees, taxes, currency conversion etc. It is a 2 bd 2 bth that needed some touch up work. I'll be sure to pass on any deals I think might be of interest. I'd love to also meet up when possible. Have a great day! Andrew Smith

what’s up man! So good to see you on here.  If you like maybe we could chat sometime, I have three properties I fixed up and re-finance one of them and bought the other one free and clear.  I manage both of them.  A lot has changed when I left San Diego in a good way I would like to think ,but anyways.  if nothing else it would be good to hear from old friend. 

@Mark Doty welcome to BP! That's some good experience all around. I would drill down on your criteria and get really clear where you want your time, money and energy to go towards. San Diego still presents opportunity, deals are just harder to come by. I see/hear locals investing out of state since San Diego is expensive which I understand and certainly agree. I believe there's opportunity in San Diego and out of state, it's a matter of what fits your criteria at the moment. Let me know if I can help with anything. Same to you @Andrew Smith !

Hello! @Mark Doty

Welcome to BP, and congratulations on making the decision to invest in your future via real estate.

I have written a few blog posts that may help you get started here on BP, and with your investing. Please click on the links, give them a read, and share your thoughts in the comments.

First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:

https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bp

The second is a post that will help get you focused with your real estate investing goals:

https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciated

The last one is a post that will help you choose an “investor friendly” real estate agent.

There are many agents out there, but it’s important to choose the right one.

https://www.biggerpockets.com/blogs/5868/52724-im-new-to-investing-how-do-i-find-an-investor-friendly-agent

I love answering questions if you have any! Good Luck :)

Hello Mark,

I’m an old newbie.

I have bought and sold various homes throughout my life and, as a general contractor, have remodeled hundreds for others.

I am new to my area (San Diego) and currently help local estate owners deal with subcontractors, manage major rehab projects, and locate and execute capital improvements that make sense. While the work is rewarding, it is not increasing my own portfolio.

I’m 58 years old, have terrible credit and besides my consulting business, am not employed. Not seeking pity here, just explaining honestly my situation.

I am retired now and have no interest in putting my tool belt back on, but what I do know is how to build, maintain, remodel, manage, improve, and take care of homes and buildings.

I realize my market (San Diego) is too “rich” to make Cash-Flow deals work but I do see a lot of high-end flips, especially along the coast. While I may be able to provide “value” to these rehabbers, I am also interested in partnering with out of state BP members to allow me to invest my own funds to stack and grow my own portfolio.

I am reaching out to you all to get your feedback. Any assistance would be greatly appreciated.

Thank you,

Kevin Beck

@Mark Doty Cheers to you for taking a shot at an investment property before even picking up your primary residence! I wish this were something I'd done. I'm really curious to hear about your MFH venture. We should talk shop!

I live up north in Sacramento and I like midwest for cash flow too. Something that's not mentioned on this forum much though- watch out for midwestern markets that cash flow well w/ respect to price:rent ratio, but have an excess of rental housing supply relative to the tenant pool. Turnover, vacancy, grade of improvement required, and time to refill all increase dramatically in some of these out of state markets where there are more rentals than tenants. General occupancy rates don't paint a complete picture for a rental property investor that is presumably looking for cash flow in working class neighborhoods.

I just read your blog post and would like to dialog with you about putting together a few people for investing. First, do NOT invest in California. I took my money out of Orange County and bought an office building outside of Memphis with amazing cash flow. 

@Mark Doty   Sounds like you have a clear sense of your goals.  Kuddos for being brave enough to jump into deals and get your feet wet.  Sounds like you have learned a lot of these deals already!  Where were you hoping to invest?  Are you going to focus on buy and hold?  Are you looking or multi-family or single family?  Are you planning on managing yourself?  I think getting very specific about what you are looking for will help answer some of your questions about your next best step.  Good luck!

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