New real state investor In SD

[Casey Gunzl]

Hello!

I’m Casey gunzl born and raised in San Diego, 1 year out of high school turning 19 years old in a couple days and got really interested in real estate in been reading all kinds of books and watching YouTube videos. I work in construction full time and also just got a partime job at Wendy’s to make more money to save up to eventually put a down payment on my first house. Would love some advice or maybe some help to get started in the game faster. Really appreciate everyone on here to help each other. THANK YOU   

[Dan H.]

Originally posted by @Michael Jones:

@Dan H. -- that seems like sound advice. I would echo that FHA / construction / age present amazing options for Casey.

What kind of REI strategies are you using in SD County currently? I'm struggling with whether to buy-and-hold or BRRRR cash flow out of state or FHA into a new townhome here in SD, using our first one as the first "investment" when we rent it out subsequently. Challenge is I've got two young kids, one in school, and we live near some of the best schools in SD Unified.

As of now, our current townhome would likely be cash flow negative for awhile, but it's in Scripps Ranch where it's appreciated substantially and rents will keep climbing. In a few years it should be cash flow positive, and in many years, it could be a gold mine. 

But I want to buy more! I'd love to do it in SD County but I don't see cash flow opportunities here. I'd be interested to know what you're doing and how.

@Casey Gunzl - Good luck! Hope we can connect sometime down the road. I'd love to help however I can. I'm sure I can give you insight on business operations / marketing whenever needed. 

@Casey Gunzl

>I'd be interested to know what you're doing and how.

We have been doing BRRRR before I ever heard of it on BP. We mostly self manage LTR but have 2 units STR with professional management.

We have dabbled OOS but no longer own any OOS.  We have considered going OOS apartments and may start earnestly pursuing that option this fall/winter but it will not be in the zero appreciation markets.  We have a hot market in mind that has already had significant appreciation but we expect has not reached its peak and may not for quite a few years (so not a cheap market).  

>I'd love to do it in SD County but I don't see cash flow opportunities here.

San Diego historically been outstanding for cash flow.  Actual cash flow is the cash flow over the holding period.  It is not the projected initial cash flow.  First, projections can be way off.   Second, appreciation markets will always eventually have higher cash flow than zero appreciation markets.  It really is just math that proves this.   

I am about as anti low appreciation market as they come so if you are asking my opinion then I recommend start local.  There is no doubt San Diego has historically produced better return on buy n hold than the zero appreciation markets.

>our current townhome would likely be cash flow negative for awhile, but it's in Scripps Ranch where it's appreciated substantially and rents will keep climbing. In a few years it should be cash flow positive, and in many years, it could be a gold mine.

Scripps ranch is a fine area and is not too far from where we live. Even if it was cash flow positive at its current equity position, it will be cash flow negative when you refinance to a high LTV loan to extract money for your next purchase.

We have an ex-house in our RE portfolio.  It is our worst performing RE for its equity.  The reason is that it was purchased to be a good home for my family and not necessarily provide a good return as a rental.  Fortunately, even my worse local RE has produced a great return on investment (nearly $0.5M of appreciation on this RE with ~$1500/month of rent appreciation).  So analyze if your home is your best option as a buy n hold if you choose to  stay local. 

Good luck