All Forum Posts by: Alex U.

BP Community, 

I have been a long time lurker on BP.  I love the BP platform, it's an amazing community that has been built.

I think I have listened to over 70 podcasts, and hear week after week where people have done 50, 100, 200 deals, flips, wholesales, buy and hold. Amazing stuff. But does this even work in San Diego. 1% rule 2% rule, there is no way this is going to pencil out in San Diego, unless you are screwing will sellers and giving them way under market to purchase there property. Anything in MLS is retail pricing, and getting any kind of buy and hold return is very very tough. Even on Loopnet, you need $200k per door to get $1500 rent.

I have been trying to buy a rental property with 30% down, and trying to eek out some cashflow in san diego for more than a year. Have not been successful.  I look mostly in 92126, 92129, 92128, 92127, 92131, 92123, 92124, 92130.

So fellow San Diegans, would love to hear your experience, how are you finding your deals, any guidance would be appreciated.  Week after week, Josh Dorkin talks about buying 3/2 bed houses for $70k and renting them out for $900...San Diego just doesn't work.

@Justin R.

Thanks for your detailed explanation and feedback.  I totally agree, the profit is all in the "service fees, loan doc fee, appraisals, etc"  With that said on a 417k loan what should all the closing costs be on a 0 pt origination loan?

I'm trying to buy a rental, but using cash out equity on my primary to purchase as the rates on primary residences are 1%pt lower than investment property rates.