All Forum Posts by: Cameron Dewell

Originally posted by @Reba Marabotto:

I still have confidence in these areas. Besides the property values holding steady and increasing, the rental prices have increased. Although the investment properties are a smaller inventory to select from for the %'s my hold investors look for, they are still available. 

As for the long term appreciation... I definitely have confidence, as long as you hold for more than 2 years. The school ratings are keeping the influx of buyers and renters. The majority of the schools are over 9, and many over 9.5. The high school sports are fairing very well in the state. There are many new homes still being built in Murrieta and further up the 15 and 215 in Menifee. I expect more schools to follow.

I have buyers coming in from all directions to get more for their money.  We also have a lot of movement, based on military families, in and out 2-3 years later. Helps with rentals too, for sure.

Having been in the San Diego area since 1986, after coming to Temecula in 2007, I don't think I would go back. There is plenty to do, amazing wineries, casinos, live music, theater, great restaurants, and tons of parks.

 It would definitely be a long-term investment for me. I noticed the schools were ranked very high in those areas as well. Since it seems many people are leaving California to make their money go farther, I figure the people who don't want to leave California but want something cheaper, will move to these areas.

Originally posted by @James M.:

I’d love to hear others responses. I’ve been wondering the same things. On paper, you can get a pretty good roi in areas of riverside and San Bernardino county, I just hate the idea of owning in some of these areas

 My thoughts as well. Not sure how well property values hold-up during a downturn, but I am very curious to hear. It seems the closer you stay to San Diego, the higher the rental demand. As long as you can keep units rented, it seems promising on paper.

I have been looking into finding an investment property somewhere in Riverside County, ideally something with 3 or more units. I was shocked to see what property values are there considering that LA and San Diego are not too far away. Additionally, it seems like a very stable rental market. What are your thoughts of long-term appreication in areas such as Murrieta, Temecula, and surrounding areas? As Southern California's housing market continues to appreciate over the next 10-20 years, do you think these areas have a lot of potential upsides?

@Samira King, I am in the exact same situation right now. Self-employment makes the refi part tricky. I know a few lenders who lend based on the properties ablility to cash-flow and not just your income, but their interest rate is a lot higher than what is ideal. 

My thoughts have been to sell, take the proceeds, and park it into a 3-4 unit somewhere that will have long-term appreciation. My other thought is to use the proceeds to fund a few fix and flips and build capital. It is a tough decision and I am in no hurry, but I want to make the right choice.

Is your investing strategy typically buy and hold?

Originally posted by @Kam T.:

+1 to Penfed going up to 80% LTV on investment properties. They can be slow but it was worth it in the end. Interest only, the rate floats (no fixed rate period) and is currently at 6.25%

 Are there any pre-payment fees?

I currently have an accepted offer on my first rental property. I haven't been a licensed real estate agent for a full year ( self-employed ). Therefore, I can not qualify for bank financing or any kind of refinance. I am using a combination of my savings and hard money to pay for the property at a high-interest rate. The numbers still work at this interest rate but would cash flow much better with conventional financing. If someone in the Northern California area ( Chico, Sacramento, Redding, etc.) would be willing to co-borrow for a year or so until I can re-finance by myself, I would pay them a monthly fee until then. Everything would be done with an attorney and legally documented to protect the co-borrower. So if anyone knows anyone that wants to make some extra money by using their unused credit or someone who doesn't have a mortgage and wants to make some extra money with no money out of pocket, let me know! I would love to chat about the property's rental numbers and how much I would pay as a monthly fee to anyone who is interested! Thanks!

Great! I’ll shoot you a pm when I’m back at my computer!

Hi Jason! Excited to hear that your getting into multi family properties! I work with Platinum Partners Real Estate Team in Chico, CA. We have a great relationship with a team that’s a top producer in the Sacramento area. They are very knowledge of the whole Sacramento area. I would love to refer you to them if you would like! Let me know if I can help! Cameron Dewell

Thanks all for the input!

@Sean Grapevine , thank you for explaining that. 

Regarding question 3: Originally I thought you could have two at once but everything I have seen thus far has suggested otherwise. So lets say I have purchased a property using an FHA loan. I have now been occupying for a year or more and decide I want to move to another city (more than 100 miles away). Can I use another FHA loan to purchase another property while the first FHA loan is still covering the first property? If so, can I keep both on FHA loans until I have enough equity stake on first property to refinance it?

I currently live in Chico and attend school here. From my experience, I would not want to live anywhere west of W 8th Ave and east of W 9th street. However, this is coming from a students point of view. Most areas within these 2 streets are in great walking or biking distance to campus and downtown. Parking is tough to come by in both areas depending on the time of day, mostly on campus. Nord Ave is a great location but it is overrun by large apartment complexes on both sides of the street.

I am a renter and the main thing that I looked for was walking distance to campus and downtown. One thing I would strongly consider before purchasing a property would be how close a property's location is to the train tracks that run through town. I currently live about 50 yards from them and it can be very loud at times and shakes the building when they go by. It does not bother me but it does bother some people.

Let me know if you have any questions.