All Forum Posts by: Lee Ripma

Second that

You can get prequalified for a loan to see what you can get. You can probably get the most with an FHA because the back end debt to income requirements are lower, I think even up to 42 or 44 and you only have to put 3.5% down.

I ask because that's the hard part, so if that's done, it's worth a whole lot more. 

Is the land entitled? Shovel-ready? Do you have permits to build or just design? 

Certainly check into what the PM company charges for turnover. The one I'm planning to use chargers a full months rent. So I have 8% to account for that fee (1 turnover a year) and 8% to account for vacancy. Then another 8% for the PM fee. You could also calculate this as a flat fee, but 8% is one 1 of 12 so it works for me to do it as a percentage.

So do you like Info USA best? I just discovered agentpro247 and it seems really valuable so far. I haven't tried the lists for mailing yet though. I bought a list from listsouce and wasted my money, I thought I figured out how to separate multi-families but I was wrong and everything I got seems to be condos or apartments. Lesson learned! I'm now narrowing in on my farm area so it shouldn't be too hard to just build the list myself and then lookup info for the houses that I like on agentpro247. It's fun to figure out what route to take. Offering folks off the MLS what the property is worth to me hasn't been working!

@Ryan Jonson

What's your goal? 

If you invest out of state you'll have a local PM team. I live in your area and have decided to invest out of state. Many here will say do something close to home and I've seen some creative ideas that might work. A great one involved buying mobile homes and owner financing them, which you could probably do in Mojave or Bakersfield, maybe even Palmdale. Without someone else involved in a deal you're not realistically going to be able to get started in the LA area with that kind of capital and income. But perhaps your goal is such that you have something you could do with that capital and income. In the midwest with 20k you can pickup a TK property thats available to you with that 20k that will cash flow 200-300/mo. You could also buy the property yourself and do light renovations and then hire a local PM company to manage it. 

Single family zoning, small lot subdivision doesn't apply, you could maybe put an ADU/granny flat in the back but that's it.

I'm sure people rent out spaces like this all the time.

@Jeff Dulla

Really interesting points here! Sounds like you specialize in running these larger campaigns. Cool!

Perhaps that addition is considered uninhabitable by the City. My reading would be that you're not allowed to airbnb it, of course they would have to catch you doing it. The mechanism for this would be having a schedule C filed in the City of SD and reporting income that doesn't have a biz license from them. If you have a biz license from them they will know you're renting it. I think a biz license is required to operate airbnb in the city, but worth checking into. A lot of the municipal zoning now prevents rentals under 7 days as well, so look up your zone and check. If you want some additional feedback post your zone here once you know it and the size in sf of the lot. It's possible you could add another unit to the back that is different from the addition. 

http://apps3.sandiego.gov/siteinfoweb/begin.do

@Justin R. Is the City of SD Pro when it comes to these types of things.