All Forum Posts by: Katelynn Quinn
Katelynn Quinn has started 1 posts and replied 3 times.
Post: So stuck on this one.... San Diego 2 Family worth it for under 1mil?
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- Votes 4
Quote from @Jonathan Greene:
It definitely has potential, but I agree with what @Dan H. said. If you want to buy real estate and wait, this could crush, especially with the new ADU laws in effect in San Diego which could help if you have any extra room on the lot at all. Appreciation is locked in for a two-family there, but it will be more about how much it will take to get it to what you want and what you might be missing along the way.
Thank you Johnathan! The lot is large enough to add 1-2 ADU's in the near future and would dramatically change the ROI after a year or two. Maintaining the perspective that it is an investment property is going to be the key when it comes to upgrades.
Hope you have a fantastic 2024!
Katie
Post: So stuck on this one.... San Diego 2 Family worth it for under 1mil?
- Posts 3
- Votes 4
Quote from @Dan H.:
Are you referring to “SB-721 Building standards: decks and balconies: inspection” If so, it does not apply to duplexes. It starts at triplexes.
It is a tough RE market. Prices are at all time high and rates are near highest in past decade. In San Diego, RE purchased off the MLS at high LTV has large negative cash flow. With rent control, AB1482, the cash flow increase is limited. To get positive cash flow could take years.
As for the appreciation, San Diego area has historically been outstanding. My worst appreciating property has appreciated ~$2.6k/month. My best has appreciated over $10k/month. However, we are coming off a dozen years with crazy RE appreciation That trend is unlikely to continue unabated We could enter a low appreciation or depreciation RE period. I would not count on short term appreciation to be great.
Negative cash flow can get old fast Especially when large cap expenses occur.
I have confidence that 10 years from now you will be happy you purchased. However, with the negative cash flow, the first large cap ex or the first bad tenant will have you question the decision.
As for that market, I have been forecasting west Chula Vista to outperform the broader San Diego market since the bay front redevelopment was funded. One of my friends is possibly the largest non-syndicate owner of units in the west southbay area. He has done great ( obviously if he has that many units).
Good luck
Thank you breaking it down for me Dan! I did mean SB-721 and was told it would hit a duplax... so glad to know it is meant for tris and above. That is a huge weight off my shoulders.
Cheers until that first big cap ex and hope you have a wonderful 2024!
Katie
Post: So stuck on this one.... San Diego 2 Family worth it for under 1mil?
- Posts 3
- Votes 4
Hi All!
I am really excited to begin my journey owning real-estate in San Diego and could use your help. There is a 2 level multifamily in National City (2x 2br and 2bath) that I am super interested in using my VA Loan for. It is listed for $875, will not cashflow, needs around $15k in work to be renter friendly and $30k in upgrades over the next year and a half. The future upgrades will be to deal with the new EEE reg coming down that will force me to redo a set of stairs and two landing that are both outside.
Does anyone know the area to help me truly dive into the appreciation for the property to see if this is worth it? If it helps, it is 15 mins from where the new Chula Vista Bayfront project will be ('they' say it will raise home values). Ultimately, I plan to hold the property and know that initially the appreciation will not be a big deal. Im stuck on this property because a multi-family that actually good and is under $1 mil is few and far between BUT my long term goal is to buy more....
BP Community... please help!