All Forum Posts by: Eugene Lee

Hi Larry,

I'm currently looking at Memphis, Houston, Little Rock, Kansas, and Cleveland; although Cleveland and Houston have relatively high tax rates which I find unattractive. 

By class A, I suppose it's more of a class of tenant I'm thinking about more so than say, the level of education. The hope is longer leases, better tenants, lower cash flow presently for lower maintenance and lower vacancy translating to higher cash flow over the long run. 

Hi BP!

I became interested in real estate investing about six months ago and since then have begun work at a full-time position. The thing that really lit a fire in me to become financially independent though was being disowned by the CEO.

In any case, I'm here to  document my first deal. Because I am based in San Diego and working a full-time position, I plan to pursue a class A property single-family residential from a turnkey provider that can cash flow at least $150 a month. I have reached out to a few and hope to keep you all updated as my journey of building a real estate portfolio progresses! This is so exciting!

Please feel free to reach out with any questions you may have. And here's to giving back to the community that has given so much to me. 

Hi Stanley, 

That is a question that ultimately comes down to your preferences simply because even the most passive real estate investment is going to be significantly more hands-on than indexing 20% of one's paycheck every two weeks.

Having said that, I firmly believe the case for real estate investing sets itself apart from indexing on a few levels:

1) cash flow - the right property at the right price will cash flow more than JNK will on a good year
2) equity buildup (mortgage paydown) - building equity as someone else pays down the mortgage, that's pretty awesome and should not be discounted. It won't affect 1yr cash on cash return but in terms of ROI, it may be another 5%.
3) Taxes: This is what really sets real estate investing apart from index funds; dividends are taxed. Mortgage interest is tax deductible. When one chooses to sell the funds, you may pay cap gains tax. In real estate, one can 1031 exchange four houses for a hotel; tax free. 

Hope this helps. 

Full disclosure: I work at an investment consulting firm 

Welcome to BP! I am also based in San Diego. What sort of real estate investing were you trying to do? 

Great post! I learned a lot. Appraiser coming in clutch!

Hi All, 

I'm looking at a few sfr properties in the midwest with cash flow potential and I'm having some trouble with the maintenance/repair/CAPEX numbers. Currently, I am budgeting the following:

Maintenance/Repair: 7% Gross Rent - 5%-7% seems to be standard for SFR properties?
CAPEX: 180/month (2160/yr) - because its slightly higher than the BP book recommendation

It may be important to note that these investments would be turnkey

Do these numbers make sense or are they too liberal? too conservative? I would really like your insight. Thank you!

Hi All,

I'm looking at a few sfr properties in the midwest with cash flow potential and I'm having some trouble with the maintenance/repair/CAPEX numbers. Currently, I am budgeting the following:

Maintenance/Repair: 7% Gross Rent - 5%-7% seems to be standard for SFR properties?
CAPEX: 180/month (2160/yr) - because its slightly higher than the BP book recommendation

It may be important to note that these investments would be turnkey
 
Do these numbers make sense or are they too liberal? too conservative? I would really like your insight. Thank you!

EDIT: damn it I posted in the wrong forum ._. 

Hi Brett, 

Thank you for your reply - I know. I was wondering if any investors in San Diego had any experiences with turnkey properties. 

Hi BP,

Does anyone have any good Turnkey recommendations out of California? As an investor living in San Diego, I am finding it relatively difficult to find cash flowing investments in San Diego. Furthermore, because I am working a full 40-hour position, I am willing to do a lot of the analysis work and so on but I would not be able to be fully engaged in the property management process. I would greatly appreciate any insight into what you guys have to say! 

- Eugene 

Hey BP, Real estate, especially San Diego seems to be a really hot market. I'm hoping to follow a buy and hold strategy to generate rental cash flow. My question is, would it be worth waiting until the market cools down to begin investing in real estate? As I am hoping to invest locally. I recognize that (in the equity market anyway), it's quite difficult if not impossible to time the market and time in the market is more important than trying to time it. Any tips or areas in San Diego worth (if that's the right word) investing would be greatly appreciated. Thank you so much!