In America's Greatest City (San Diego) looking to get started!

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In America's Greatest City (San Diego) looking to get started!

Nathaniel Donnelly
San Diego, CA · Member since 2013 · 55 posts · 12 votes

Greetings everyone! My name is Nathaniel Donnelly and I am currently a Senior Consultent with Booz Allen Hamilton in San Diego, California. I am graduating with my MBA in International Busieness from San Diego State University next month, and I am looking to start investing later this year. I bought my first house 2-1/2 years ago and started renting it out in March when I moved in with my girlfriend. I am currently making 8% on the property and I'd like to acquire as much knowledge as I can on expanding this practice. My ultimate goal would be to acquire enough wealth to be able to move down to Costa Rica and run a B&B without having to worry too much about cash flow. I learned about this site by looking for recommendations on good real estate investment books, and I am very excited to meet many of you and see what great things we can learn from each other. I truly believe that "birds of a feather flock together", and I'm looking forward to flying with you!

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Travis Daggett
Real Estate Consultant · Eugene, OR · Member since 2013 · 178 posts · 39 votes
12y

@Nathaniel Donnelly -

@Sean Edgar is an active wholesaler in your market. I've found him to be a good resource.

I hope that helps!

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  • Jerry LoCoco
    Rehabber · Yuma , AZ · Member since 2013 · 36 posts · 2 votes
    13y

    Welcome to BP! I would have to agree with you, San Diego is America's greatest city! Good luck on Costa Rica, my wife and I would definitely sign up as clients at the B & B! Let me know if you ever need anything in Tucson, AZ.

    0Reply
  • Michael Quarles
    Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
    13y

    Welcome.

    Omg I think you may be the only person to use a 15 letter word on BP this year. Just kidding.

    Shoot Todd Toback a pm. Hell be a great contact for you.

    0Reply
  • James Vermillion
    Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
    13y

    Welcome to BP! What's the weather like in SD...let me guess, 77 and sunny. Make sure you take some time to checkout the forums, blogs and podcasts, they all have some great information.

    Good luck!

    0Reply
  • Tom Goans
    Real Estate Investor · Englewood, CO · Member since 2013 · 988 posts · 258 votes
    13y

    Nathaniel Donnelly,

    Am I correct San Diego has the largest active military presence in the country?

    0Reply
  • Nathaniel Donnelly
    OP
    San Diego, CA · Member since 2013 · 55 posts · 12 votes
    13y

    Michael Quarles, Thank you! I will!

    Tom Goans, I believe this is true, and the second largest veteran presence next to Los Angeles. I actually bought my place with a VA loan as a student!

    Thank you all for the quick responses! This is exciting and paying off already! Already trying to figure out how I can give back, lol

    0Reply
  • Carlos Flores
    Commercial Real Estate Lender / Syndicator · Dallas, TX · Member since 2011 · 888 posts · 309 votes
    13y

    Welcome to BP. I'm in SoCal about once a month. Very nice part of the country.

    0Reply
  • Tom Goans
    Real Estate Investor · Englewood, CO · Member since 2013 · 988 posts · 258 votes
    13y

    Nathaniel Donnelly,

    The reason why I asked, I continue to read more reports of the reduction in military spending across the board. One I read today talked about the reduction that began in 2010 and is esculating.

    This may be a factor in your future real estate investment considerations.

    0Reply
  • Nathaniel Donnelly
    OP
    San Diego, CA · Member since 2013 · 55 posts · 12 votes
    13y

    Tom Goans
    I agree. The more veterans entering the civilian world, the more VA loans we will see. Just watch the G.I. Bill trends as VA Home Loans will follow a similar pattern I believe. They will be a great target market now and for the next few years. I think there are now more OIF/OEF veterans than WWII and Vietnam veterans. Just treat 'em right! ; )

    0Reply
  • Theresa K.
    Real Estate Broker · San Diego, CA · Member since 2012 · 104 posts · 20 votes
    13y

    Nathaniel Donnelly: Welcome neighbor and fellow Aztec! Lots of good info here on BP. Are you looking for another rental? Prices are going up in SD right now so unfortunately good rentals are getting harder to find.

    0Reply
  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    13y

    Hey Nathaniel Donnelly welcome to BP! Definitely don't be shy to jump in and ask questions or offer your advice anytime!

    Podcast Guest on Show #92
    0Reply
  • Nathaniel Donnelly
    OP
    San Diego, CA · Member since 2013 · 55 posts · 12 votes
    13y

    Brandon Turner, Thanks for the warm welcome. Site looks great and I have started listening to the podcasts as well. So much info already!

    Theresa K., Thatnk you! And yes, looking at getting another single family home and maybe even a duplex-quad afetr what I've been reading.

    0Reply
  • Nathaniel Donnelly
    OP
    San Diego, CA · Member since 2013 · 55 posts · 12 votes
    12y

    Hello again everyone! So a lot has happened since I first posted. My girlfriend and I have purchased our dream home up on Mt. Helix here in San Diego, and have been renting out our properties since.

    Unfortunately, my girlfriend bought her home at near the top of the market and has just recently gotten right-side-up after many years underwater. Her mortgage is $2500/mo. and we are renting her place out to a dream tenant (Navy officer and his wife) that we rarely hear from, but they keep the place emaculate and the check is in the mail early every month! Their rent is $2800/mo. As you can see, that doesn't leave us much wiggle room, and it doesn't cash flow, but at least equity is being built.

    My little place in the neighborhood of City Heights close to downtown San Diego has been our cash cow. I bought it at the bottom of the market and the mortgage is only $790 and it is renting to another great military tenant and his wife at $1500/mo. They have even helped restore the 1926 home because they have a similar home, built in 1928, back in Indiana.

    We bought the new primary in October with a 5/1 ARM that we pay $600/mo. PMI on. Relax, haha, we did so with the plan of refinancing it in 6 months, which we are in the middle of right now. That refi will pay off the City Heights home and get my VA loan back for the primary - a 30-year fixed w/o the PMI.

    So that's our situation. My question is this: with my goal of building a REI empire using a buy-and-hold strategy, should I take money out of the City heights home to purchase another?

    It seems pretty difficult here in San Diego to find a home that will fit within BP formulas for cash flow, as a $250k 2-bedroom may only get you $1500/mo. rent.

    Can people in very high-priced markets like San Diego settle for less cash flow and still be wise investors?

    Please advise.

    0Reply
  • Elizabeth Colegrove
    Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    12y

    Welcome to Biggerpockets! 

    Definitely check out the blogs and podcasts! Many people on this site is doing a large meet up in San Francisco in Nov., although it not sponsored by Biggerpockets.

    @J. Martin 

    1Reply
  • Mary B.
    Real Estate Investor · Lansdowne, PA · Member since 2013 · 1k+ posts · 656 votes
    12y

    @Nathaniel Donnelly Welcome to BP. I just visited San Diego back in April and had a wonderful time. The weather was perfect, we got in some wonderful activities and many people don't consider California a food state but San Diego most certainly is a great food town. Can't wait to return. Well wishes on your real estate endeavors. See you around. :-) 

    Kudos,

    Mary

    0Reply
  • Travis Daggett
    Real Estate Consultant · Eugene, OR · Member since 2013 · 178 posts · 39 votes
    12y

    @Nathaniel Donnelly -

    @Sean Edgar is an active wholesaler in your market. I've found him to be a good resource.

    I hope that helps!

    1Reply
  • J. MartinPro Member
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Nathaniel Donnelly ,

    You're in the classic conundrum of the Cali coastal investor, and people do all kinds of things. Some go out of state, some invest locally, some go inland.. I stay local. Have had good cash flow in some lower-income communities, actively managed, w/ strong rental demand. And lots of appreciation. Many others in Cali are getting cash out. Search for cash flow bay area to look at the last deal I did. You can get much better deals by buying something real beat up, then fixing it up, and renting it out. 4plexes will generally have more cash flow than SFH or condos. And 5+ generally more CF than SFH or 4plex, but sometimes less appreciation potential, depending on circumstances..

    Thanks for the shout-out @Elizabeth Colegrove , and will be making some big announcements about the Summit in Nov shortly! Would be great to see you up here if you can make it Nathaniel, and you can talk to a lot of other investors in the same situation, hear about returns and investment prospects around the country, and get contacts with those providing services in different areas..

    And you might want to touch base with @Ali Boone down in Venice Beach about your Costa Rican B&B idea..

    I work in financial services also, full time (in bank regulation, working with the FDIC & Federal Reserve Bank) and invest and landlord (with a team in place). Working on my 4th transaction in less than 2 years, on the 11th and 12 units (Victorian duplex in West Oakland).

    http://www.biggerpockets.com/forums/311/topics/139795-in-contract-on-first-negative-cash-flow-deal-and-excited-thoughts

    And here's the one I just finished..

    http://www.biggerpockets.com/forums/223/topics/132989-deal-success-story-in-process-cash-flow-in-the-sf-bay-area

    Good luck on your investments! And feel free to tag me in the forums if you have any questions!

    0Reply
  • Dave VisayaPro Member
    Moderator
    Audio Engineer and Investor · Cebu City, Cebu · Member since 2013 · 7k+ posts · 881 votes
    12y

    Hey @Nathaniel Donnelly welcome to the site! It's great to have you! 

    BiggerPockets
    0Reply
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