All Forum Posts by: Mark Frattini

How much are you getting in rents? Mission Valley should do very well over the long term.

Congrats!

Hi @Bryan Kurtz,

This is a great question and I think you will ultimately find there really is no right or wrong answer. I'll offer my thoughts as a real estate agent here in San Diego with a few out of state rentals. If you are considering using your primary residence as a form of investing (house hack, flip, BRRRR etc.) then I would find something here. You eliminate paying someone else's mortgage and start paying yourself through your principal payments. What is the opportunity cost if you pay rent for another year or two? Since its your primary residence you will get better loan terms as well. Prices are up everywhere and as you mentioned there is additional risk that comes with investing out of state. No one knows what the future will bring but if you look at the increase in housing prices for San Diego and compare that to the best case scenario cash flow for an out of state rental San Diego appreciation is going to come out on top by a long shot. You could also try a hybrid approach and do both. Best of luck!

@Savannah Inderwiesche

Congrats you guys are crushing it! So you purchased the home as a live in fixer and put $85k into the reno. How much was the ADU garage conversion? Or are you all in at $85k?

With the homes recent valuation are you going to sell and move onto the next project or pull some cash out and buy another one?

This post is gold for those considering buying in Big Bear right now.

There are still many opportunities in SD if you know where to look. Keep in mind that San Diego is becoming more restrictive with STRs as well. Look into the new laws going into effect next year. I personally like to buy with the exit strategy in mind. If I was going to buy a short term rental today in San Diego I would want to make sure it would work as a long term rental as well.

Hello @Avid Najdahmadi,

Stick with Mira Mesa. It has good schools, central location and is close to your work. Hard to put a specific price on having a short commute but it's HUGE. Mira Mesa is also in the path of progress. It sits between Scripps Ranch and Sorrento/La Jolla (bookends) has highly rated schools and lots of money is being invested in the surrounding area with new businesses & restaurants etc. You shouldn't have any problem finding a tenant when you are ready to move onto the next property. Look for a house that needs a little bit of work so you can force some appreciation. Know how to find properties that meet your criteria in the MLS.

Hi @Patrick Senas,

Congrats on getting started! You're off to a great start by getting pre approved before you find a deal. A lot of people get this part backwards. What's a good deal on a house hack in San Diego? That depends on who you ask. Some investors are OK purchasing a property that is cash flow negative for the first few years of ownership. Others want to cash flow from day one. Given our current market and that this is your first deal try for a "base hit" and not a "home run." If you're currently renting just getting into a home where you are paying your mortgage and not someone else's is a deal. Locking in a loan at today's rates is a win. Use the VA loan to your advantage. Find a single family house with a granny flat, studio, ADU etc. Combine this with your search for a 2-4 unit. Make sure your agent knows how to hack the MLS search to your benefit. Find properties that other people are passing on because it needs work, smells bad, has an outdated look etc.

Hello @Ryan Beal

Quick tip: Consider moving into one side and renting out the other. This will give you the best rate and terms on your loan. Also, if one side is nicer than the other move into the side that needs work. Rent out the other side for more rent while you slowly fix up your side. After finishing up the reno find your next duplex, rinse and repeat. 

Hello

@Ad Amparan Happy to connect!