All Forum Posts by: Andy Eakes

@Kole Moore Welcome to the Real Estate Investing world! Sounds like mostly everyone else covered the main points but I will throw out there that you should become the master of the VA loan. It really is a great gift. The thing with the VA loan too is that if you get a property with the VA loan and refinance later on, turning it into a traditional loan at that point, you don't have to live there anymore (opening the door for renters to move in) and you gain the VA status back and you can use it on another property. You could build a portfolio that will support you financially just by doing it that way with ZERO money down. And in San Diego too?? It's a no brainer!

Good luck 

@Joy Park Hey Joy welcome! As an investor in San Diego in my 20s as well, I have to say BP has helped me so much in a market that typically is more expensive than the rest of the country. Don't let it discourage you!! There are plenty of options to make great money! Good luck!

@Jerry Niuatoa With the market the way it is in CA, investors are having a really hard time finding cheap properties to buy (I know I am!). If your sole focus is helping an investor find deals and make them great money, you'll get some great deal experience in a challenging market and have a mentor for life. You can use this mentor to create a system for your own investing along the way. 

I will also say though that you really don't need a mentor honestly. Ask yourself why adding a mentor to your team would make sense. It rarely makes sense. If your reason is to have someone show you the ropes and "hold your hand" so to speak, then I would say that you have the wrong motivation and finding a mentor will be tough. If you need financing, well then that's a different story. All of the information you're going to need though to find and close a deal is available for free or cheap in the forums or in books. A good investment minded agent can help you along the way too. 

But know that working with a mentor is only going to take away from your profit at the end of the day, prolonging the road to financial freedom. 

I hope that helps!

Andy
 

@Connor Nellans Seriously! I am not sure. The article didn't say how many homes you could have on your property. Having a mini mobile home park could be crazy lucrative though!

@Connor Nellans That's a good point. I would assume it would work like a mobile home. So you may need a plumbing hook up? And you probably wouldn't be able to charge as much for rent but in San Diego, you could probably still get a pretty good amount each month. 

Hey Bryant! That is so awesome you want to get your parents a new home! And you have a few options..

It sounds like your parents own their home and it's paid off correct? If so, then you could do a 1031 exchange on the house if you are not too tied to the home. Essentially this means you take their existing property and exchange it for a home of equal value without having to pay capital gains tax and any other federal income taxes (I am not a CPA but I live in San Diego as well and can recommend a great CPA who does a ton of 1031 exchanges and could explain it much better!). Then you wouldn't have to pay anything and you could take that savings you planned to use for this property and use it to buy up investment properties in the mid-west.  

If that is something you aren't interested in, thankfully we live in San Diego! People are going to want to live here and pay rent. And with the housing crisis, San Diego has eased restrictions on adding ADUs to your property. If you were up for adding another building to your parents property (or even converting their garage or another separate building they may have), that could be even more income and with your parents house paid off and tenants paying off the utilities, the only bills would be property taxes. You could have a pretty nice cash flow! But be careful, if your renters can't pay rent for whatever reason, you are unable to evict anyone until September.

If you wanted to fix up the house and have it refinanced as well (BRRRR it), that's a great option! With a cash out refinance, you can take out up to 80% of the home's equity and put it toward another property. My parents just refinanced their home in San Diego and got a 2.1% interest rate! Unheard of. You could pull out that cash and buy a new home for your parents and have a low enough interest rate where you could positively cash flow with renters. It's already been said that the rates won't go up until the end of the year, so you have some time. But don't wait too long with this too because many people are refinancing right now and so lenders are very busy!

You have a ton of options thankfully. And you are sitting on a lot of money with your parents house. I would consider using the equity in your parents house to your favor! I hope that helps!

Hey Cathy! I saw the article as well. With the housing crisis here, San Diego has eased restrictions on adding an ADU to your property. I met the a General Contractor in San Diego recently who told me you can ADUs as big as 1,200 sq ft to your property. When built correctly, that can be an extra 4 bed, 2 bath unit (I've seen it in San Diego before). With rent being as high as it is here, that is potentially a huge amount of extra cash coming in every month. If you have a property with alley access too, that is a great separate entrance for the ADU. But adding an ADU can be expensive and time consuming.

So by allowing people to tow in their tiny house to your property, you aren't having to pay for any construction costs, and usually, if the tiny house is theirs, the tenant will pay for all of the repairs to their tiny home. Whatever they pay to you for rent would all go into your pocket. Sounds pretty good! I would be curious to see if there are going to be any regulations as far as requiring permits. But for now, this seems to be the solution for people in San Diego who want to create the extra cash flow that comes from an ADU, but can't afford to build an entirely new building.

I hope that helps!
 

@Bryce Miller If you're still looking for someone, I know a good company whose done tons of real estate. Send me a PM.

Thanks for the information Kieth. Here in San Diego, CA where I am located, a lot of people are hopping on the ADU train if you will. It really got me thinking about my extra space. I never plan to sell my property either, so I think if it is possible to rent it out after a renovation, it's a good idea. Time for me to get started! I can't wait. Thank you for the insight and direction.

This looks like a great learning opportunity. Looking forward to it!