All Forum Posts by: Jake Baker

@Jason Paddock

Welcome to the community! I am also a San Diego native. I do have some experience with MTR and STR in San Diego.

STR - given the new regulations you will need a permit for STR and Airbnb won't let you list the property for less than 30 days without the permit. There are still a lot of licenses left for Tier 3. @Maxwell Ventura recently helped me find a property in downtown that cash flows very nicely due to this license. 

MTR - I have one MTR that has been suffering since the STR regulation went into effect in May 2023. My ADR went from 190 to 120. I believe this is due to the influx of MTRs from people not getting the STR license.

@Jalen De Leon

Great answer from @Nate Meeker

You should find a CPA that invests in real estate. They don't need to be local to your city. @Account Closed are great options for CPAs based in CA. 

Now is a great time to get your bookkeeping in order and set up for success as you acquire more properties. Being that you only have 1 property, hiring a bookkeeper is not needed. digb is a great and affordable option to track your investment. 

@Mike Levene

$30 seems like for a rehab. Be sure to research comparable rentals in the area and rehab it to that standard or higher to ensure you reach your ARV.

I noticed your monthly expenses are for 6 months... perhaps for the seasoning period? You could rehab a house of that size in much less time. Some lenders can do a 90-day seasoning period for DSCR loans.

@Alexander Rovsek

The best source of learning for me is local meetups. Networking with other investors in your area is invaluable. This allows me to see what others are doing in my market and learn trends before they hit the podcasts and books. 

Education without application is just entertainment. 

@Jason Henry

A HML will typically fund 90% of the purchase price and 100% of the rehab on a draw schedule. This means you will personally need 10% of the purchase prices, roughly 1/3 of the rehab costs, and holding costs funded out of pocket.

What I do is raise money from investors for that portion and give them equity in the flip or BRRRR... allowing me to use no money out of pocket.

Of course this involves forming an LLC with a trusted investor that you plan to have a long term investing relationship with.

@Pedro Porc

Whichever strategy you choose to pursue, be sure to get quotes from multiple lenders. Different brokers will often have access to different loan products.

Happy Investing!

Welcome to the community!

The BRRRR method is great! The first thing you will want to do is find and investor friendly agent. They will have referrals to lenders, contractors, and property management.

@Bryana Robinson

J Scott has a great book on estimating rehab costs. Here is the method I use to nail down my rehab costs:

1. Analyze the deal and estimate costs based on pictures. 

2. Get under contract.

3. Have my contractor and inspectors walk the property.

4. The contractor gives me a bid based on the walkthrough and inspection results. 

5. Renegotiate contract if needed.

Happy investing!

@Chad New

Hi Chad, congrats on joining the BP platform and getting started on your REI journey.

1. You are correct that hands on learning is the best form of mentorship. The best way to find mentorship is to attend meetups, network with investors, and most importantly, get your feet wet with some deals. 

2. I am a part of a few masterminds and find the networking aspects invaluable. However, you may not see the return from it right away.

3. I live in San Diego and flip/brrrr 15-20 properties per year in Jacksonville FL. "Who not How" is the answer. Network with investor-friendly real estate agents is a great start to building your core team. They will be able to lead you to contractors and property management. After you do a couple of deals, you will find people that you trust.

Happy Investing!

@Quinn Dudek

We 15-20 flips/BRRRRs per year. If you are buying SFR be sure to budget for rehabs and CapEx. The only way to avoid any type of rehab is the buy new construction... or a very new house.

I prefer buy houses that need to be gutted because I know I will rehab it to a level where I wont need any major repairs for a long time. Or I will purchase a new build knowing that everything is new in the house. 

Happy Investing!