All Forum Posts by: Mark Frattini

@Manjusha Tangirala

I would do everything suggested and consult with an attorney just to make sure you've done everything possible to protect your guests and yourself. 

@Regnor VonDedenroth

I've always recommend using the standard California Association of Realtors lease forms. This was also what Katie mentioned.

I personally have not hired an attorney to review any of my leases. You could but likely not necessary. 

Quote from @Elizabeth Rose:

Does anyone know the answer? I'd love to purchase a property that allows short-term rentals there but the city now requires a license for these and they are in very short supply/difficult to get.

The idea of purchasing a room at the Hard Rock Hotel seems like it may be a great way to get into the short-term rental market there and also have someone else manage all aspects the rental, which is ideal for me. But also, I see 13 rooms for sale there right now so it makes me wonder if there's something wrong with the building, a special assessment of some kind, etc. Does anyone have any intel on this?

@Elizabeth Rose

I've had many clients contact me regarding units at the Hard Rock, but they have never worked out for different reasons. I have reviewed several owner statements from different units, and the hotel takes 50% of the gross revenue along with other miscellaneous fees. However, I don't think this is far off from what any full-service short-term rental management company would charge. The low price and location make them appear attractive. Most, if not all, require all cash, there are limited hours to view the inside before purchasing, and there are high monthly fees. Owners can only use them for 28 days per year. They do tend to sit for a while before selling. If there's a particular unit you want numbers on, let me know.

Which parts of San Diego are you looking to invest in? There is still a good portion of the county that is not affected by the newer restrictions, and I believe you can still get a license for most property types outside of Mission Beach.

@Martin Koch I find that my clients who are buying homes have the best success rate if they are using a great lender who is local. If they are local but not on top of things then just being local doesn't help much, you need both. This might be market specific but here in San Diego where you are likely going against multiple offers there many different ways a lender can actually help get your offer accept above the others. My lender has done enough deals in the areas I service that chances are they might have done a deal with the agent on the other side. Listing agents like to know if your realtor has worked with your lender before and if they are local or not. A good lender is going to be copied on your offer to the sellers and reach out to the sellers agent after your offer is submitted. They will be in the same time zone and will be available nights and weekends if needed. They will be somewhat familiar with the type of purchase agreement used and will be more understanding of the deadlines etc.

I suggest finding a great lender that is near the property you want to buy.

There could be things hiding behind the walls and ceilings of any home you purchase. Fixing the window seals and improper flashing do not sound like major red flags. Inspectors have several methods to see if the water staining is recent or not. Sounds like there is water damage to some areas of the home so plan on addressing those areas after the purchase. If you're still concerned about microbial growth you could test for mold. Discuss you concerns with your inspector and realtor to see if they are warranted.

Deals in San Diego are being bought and sold every day on and off the MLS. Anything that is a really good opportunity is getting multiple offers and only lasting a few days on the market. Prices dipped back in Oct-Dec last year. Things are now picking back up and prices are continuing to climb. With the low inventory levels and demand that I am seeing today I expect this trend to continue.

If you are looking for off-market properties be prepared with cash.

Do you own where you live? If you do can you move and rent it out? Have you considered moving into a multiunit and renting out the other units?

@Christian Fernandez

The NSDREI meetings are held in the evenings around 6-9pm.

Stucco work - Jerry Rodriguez 951-490-9132

Painter - Adrian Garcia 760-543-9448

Landscape Design - Wave Landscape Design 619-757-9877

Owning property North County and San Diego in general should do well over the long term. If you can get by without having to sell and you are not cash flow negative I would consider holding onto it. That is if your risk tolerance allows for out of state rentals. If you decide to hold the refi will be easier now while it's your primary residence.

If you don't like idea of being a long distance landlord or paying and dealing with a property management company selling is a reasonable options as well. There's over 60k people living in Encinitas and only 44 houses currently for sale. To say there is a shortage of homes for sale is an understatement. It's still a very strong sellers market.