Where to invest my cashflow?

Question

Hello - I own a mid term rental business that cashflows about $300-$400K per year annually and I split the proceeds with another owner.

I live in San Diego and am trying to purchase my first investment property

I have about 150K to put down but am struggling to find deals that meet my price point.

Does anyone have some creative ideas on how I can break into the market?

The mid term rental company is great but real wealth comes from long term ownership. I’m ideally looking to buy that first property in San Diego.

Thanks

Jesse Rivera · Answer

Socal is tough to find investment properties that work.I have a great realtor in Sacramento that can find properties that cash flow. Sees a lot of off market stuff because he is a property manager as well.The toughest part about investing outside of your locality is finding boots on the ground that you can trust. That's why I am sending socal investors to him.Let me know if you want his contact info.

Scott Scoville · Answer

Sounds like you're well positioned. I'm not sure about the SD market, but I'm in Sacramento, and focused more on creative and seller finance deals that cash flow. Either way, with rent and price appreciation, tax benefits, holding long term is a net worth exploder. Most homes in our area double in value every 5-10 years. Best of luck and looking forward to hearing what you decide to do.

Michael Smythe · Answer

@Jordan Meltzer unless you find a screaming deal - a Class A property won't cashflow for 3-5 years.

Class B: 1-3 years.

Class C: most investors don't properly understand the risks, so should stay away from them.

So, you may need to deal with negative cashflow, but plan on appreciation increasing your wealth.

Joshua Bautista · Answer

Might have to do a joint venture.  I might have a partnership opportunity for you in San Diego but still gotta figure out some details.  An owner of the home is looking for someone that can provide some show money.  Ill shoot you a message

Corby Goade · Answer

At the price point you qualify for, I'd be looking at a more landlord friendly state with more approachable price points. We invest in Idaho, probably the most landlord friendly market in the country, had good luck there.

Best of luck!

Keith Mintz · Answer

The best way to beat the price of the San Diego market is STR or by the room rentals in an excellent location. Look for properties that have a few bedrooms and large square footage enough to add rooms and ADU. A couple great co-living options is STR by the room, Student housing, sober living, Senior care...

I specialize in these areas, and own a sober living home myself, it is doing really well!

Matthew Thornton · Answer

Have you thought about branching out to another State? I like the OKC Metro, specifically Edmond and Yukon right now.

Basit Siddiqi · Answer

Is the mid term rental business that you have a 'rental arbitrage' business?If it is, why can't you buy similar properties that you are renting with the money you make.If you get $200,000 annually(split proceeds with the other owner), you should be able to buy almost any type of property.

Steve Meyers · Answer

@Jordan Meltzer congrats on the mid term biz and your success.  I have access to see properties on market with assumable mortgages for FHA.  Shoot me a DM if you want some help with finding a condo or house with a low rate that's on market.

Neil Jenkins · Answer

@Corby Goade would love any contacts you can share in Idaho- agent, property manager, etc

Where to invest my cashflow?

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