All Forum Posts by: Peter Chan

Hi @Mason V. 

Welcome to BP! 

With regard to your $50k income restriction, do not automatically assume that if household income is over $50k they will buy a home. 

Home ownership is a long term commitment that many people are not willing to make. Plenty of households making over $50k a year choose to rent because they prefer the flexibility of renting. 

In fact, this may be the demographic that you want to target because these people will have more income and may be willing to pay a little more for higher-quality accommodations. 

Hi @Timothy Cannella !

First of all, thank you for your service and welcome to BP. 

For starters, read up about VA Loans. They will be a huge advantage for you as they will give you financial flexibility that is not available to non-military investors/buyers. I have a lot of friends who qualify for VA Loans and are able to get loan terms far superior to anything I could ever dream-of... all because my uncorrected vision is so horrible that the military didn't want me.

PM me if you want to get a cup of coffee sometime. See you around!

HOA's are almost everywhere these days. It's been a long time since I've seen any property newer than 2000 in a developed area that doesn't carry an HOA. 

I think HOA's are acceptable as long as they are in the $100 - $150 range (meaning SFR). Anything above that could start significantly (and permanently) impacting your monthly net (reducing your returns), and will accumulate quickly if you plan to keep the property for a long time.

Most Condo HOAs are well-over $300/month because there is more common area and possibly a gate, but if you can translate those amenities into a $300+ increase in monthly rent, relative to a nearby SFR, then I guess it's not that bad.

My dislike of HOAs is because they don't go away and the costs aren't tax deductible. Excluding the Debt Service, HOAs are easily the biggest recurring monthly cost that you'll have. You have to pay it and as long as you own it, you can't get away from it. 

@Patricia Olamide Akinrotoye:

Has the bank foreclosed on the property or is it still a negotiable situation? 

It would definitely help if you describe what you're trying to-do with the property, but having $246k equity definitely increases your options. 

Hi @Ryan Lunde,

Welcome to BP. I'm in San Marcos, and just getting-started as well.

PM me if you would like to get-together and chat sometime. Maybe we can find ways to work/invest/learn together.

Peter

Hi @Matt C. ,

I'm in San Marcos as well! When you get back to the states, let's make some time to chat.

That's a great attitude, and having the spousal support (personal and financial) doesn't hurt either.

Sometimes you get forced into taking that first step... but it's still a step in a direction you were going-in anyway!

Good Luck!

What matters if whether a permit was necessary when you originally built the addition. If I were to take a guess, a permit was necessary.

If you try to sell the property with an un-permitted addition, no "public" lenders will touch that with a 10-foot-stick. This does not affect you directly as the current owner, but it does affect the buyer because they will not be able to get a loan from a bank. This will reduce your potential buyer pool to cash buyers and private-money loans.

I would recommend you at least look into getting the addition permitted. This could lead to some work to bring it up to the current building standards. Once you do this research, you can at least have a number to build into your calculations.

In the meantime, @Matt Rosas is correct: there are numerous Investors/Cash Buyers interested in San Diego properties who might take this property off your hands without traditional financing.

Keep in mind that Investors and Cash Buyers are typically more-savvy than your average buyer, and they need to make the numbers work for them, so your sale price may be lower than what you could have landed in the open market... e.g. expect to leave some money on the table.

Hi BP!

I'm evaluating a potential deal in San Diego and the property has a ~600 sqft addition to the house which the listing agent says may not be permitted; the agent was of no further help, didn't even offer to find out for me.

The construction of the addition itself looks good - it has insulated walls, electrical outlets every 6 feet, minimum 7' height, etc... However, the permit status of the addition may affect my funding options.

How can I find out for myself whether that addition is permitted or not?

Thanks!

That's awesome.

Care to transcribe her text so we can share in your sunshine?