All Forum Posts by: Ali Boone
Ali Boone has started 26 posts and replied 6252 times.
Post: Southern CA New Guy Looking For Advice
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- Venice Beach, CA
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It completely depends on what goals you're trying to hit. Cash flow, appreciation, exit strategy... your goals should dictate where and what you look for, look into, and pursue. I know that doesn't answer your question, but I don't think your question really can be answered without knowing what it is you want to [specifically] accomplish.
Post: Newbie looking for learning resources
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Post: What's a good cash on cash return for baltimore turnkey rentals?
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I feel like it'd be helpful to give you specific numbers to answer the question you're actually asking...
In looking at turnkeys I'm either involved with or have been involved with in Baltimore, I'd break it down into two different classes of turnkeys: turnkeys in more C neighborhoods ($70k-100k typically) and turnkeys in nicer B neighborhoods ($140k-190k typically). Cash-on-cashes for those, and obviously this depends on the financing rates you get, might range between: Cs-- 18-25% and Bs-- 10-18%. Give or take.
Nice thing about Baltimore is expenses are really low, so that helps the numbers a lot.
Post: Newbie based in California looking to invest out of state.
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- Venice Beach, CA
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Originally posted by @Rachel H.:
@Kana Watanabe Definitely connect with @Ali Boone here. She's a fellow Californian and does invest out of state. She's written for the BP blog about this topic extensively. She should be able to help you with any questions you have and point you in the right direction. Hope that helps!
Thanks for the shoutout, Rachel! Kana, happy to connect anytime.
Post: I'm a Real Estate Investor, but my Degree is in...
- Real Estate Coach
- Venice Beach, CA
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Bachelor's in Aerospace with minors in engineering technology/industrial studies and math (nerd alert!)
Master's in Aerospace Engineering concentrating on engines but then shifted to and published in cognitive engineering
Master's in Spiritual Psychology (who knew that existed)
Of course they all helped me in REI. Not directly, obviously, but beyond indirectly. Engineering obviously with numbers, spreadsheets, creative problem solving, and my career in Aero was in corporate so just learning that kind of business structure helped too.
The spiritual psychology one (not religious, fyi) is the one that keeps me sane with god only know what happens!
Post: Investing in Corona, Riverside, Chino, Ontario, California
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- Venice Beach, CA
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Be sure to run the numbers. It's cheaper out there than in LA, but that doesn't mean there will suddenly be cash flow. If you're talking about rentals, at least.
Post: Turnkey rental property prices
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- Venice Beach, CA
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Turnkey providers don't negotiate. The only time they *may* is if the appraisal comes in slightly low and they're willing to adjust for it (only turnkey providers without financing contingencies in their contracts). Only other possibility is if you buy a lot at one time and they offer a discount for doing so.
Post: San Diego Cash Flow and House Hacking
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- Venice Beach, CA
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It's not really answering your question, but if it's helpful at all, here are things to think about with househacking-
Post: San Diego Cash Flow and House Hacking
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- Venice Beach, CA
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Originally posted by @Nicole Holcomb:
Hi Abhi, Welcome!
I have been house hacking in San Diego for the last 5 years and I think it is the best way to enter into the expensive San Diego market. Renting by the room has worked well for me as San Diego has a large student population between UCSD, SDSU, USD and many junior colleges. There is always demand for room rentals and San Diego has great opportunities in the multifamily 2-4 unit market. For my house hacks I choose 4br SFRs in north coastal San Diego (92024) and I always made sure to purchase properties with a separate entrance for at least 1 of my tenants. Having a separate entrance and making a portion of the house into a mini studio allowed me to charge more and kept my tenants happy.
There are FHA loans available for owner occupied SFR and multifamily properties with as low at 3.5% down making purchasing in the expensive San Diego market possible if you have the W2 income to qualify.
California also recently eased restrictions on accessory dwelling units (ADUs) and junior ADUs. Each SFR can now have 1 ADU and 1 JADU, it is pretty much a house hackers dream come true. I have a 1,000sq ft 2br ADU and am considering converting my garage into a JADU to up my monthly cashflow.
Vacation rentals are extremely successful for my clients in the beach neighborhoods. Beach neighborhoods may not be in your budget for a first purchase but the neighborhoods surrounding the convention center can also be a great opportunity for AirBNB and can be more affordable.
92105 and 92115 are zips in a rapidly up and coming area with affordable multifamily properties. The San Diego market is dynamic, exciting and always changing, I love it and hope you will too.
What could the numbers possibly be on your househacks, between San Diego being so expensive and using FHA which would maximize your loan payments?
Post: Low money down house hacking and/or BRRRR?
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- Venice Beach, CA
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Originally posted by @Brendan Dekora:
@Ali Boone I haven't even looked at BRRRR options, but there's plenty for house hacking. Obviously 3 and 4 unit is best, but even with duplexes the numbers work. Of course they are not profitable, but if I can pay the same amount for a duplex as I would an apartment then I consider it a win due to loan pay down and appreciation. Obviously it works better if you rent out the larger unit and live in the smaller one. I have found some that would allow me to live in a bigger place than possible in an apartment for the same amount of money, also a win. If I hunker down, find deals and do some rehab then it would be even better. No of course I'm not going to find those options on the westside and my commute will be farther, but I'd much rather do that and build my net worth than not.
On the flip side, if I invest out of state I would make around $100 a month in cash flow, but it would be eaten by the rent I'd have to pay for a bigger apartment. Of course the goal is to build my portfolio and cashflow, but for my first property it's about the same with either option.
The ultimate goal is to do both, and I may be able to do that with my partner. Looking into perhaps flipping a few to build cash reserves and then be able to do deals on my own without my partner. I'm just concerned about the state of the market right now for doing flips.
Sounds like you're thinking it all through really thoroughly! That's the best first step. Good luck!