All Forum Posts by: Mark Frattini

Arch5 Design Studio

@Betty Chou

Rates are going to continue to rise in the foreseeable future. No crystal ball needed. If rates increase enough we may see some downward pressure on pricing. The typical monthly mortgage payment for a homebuyer is already up more than $500 since the beginning of this year. If you buy while rates are high just refi when they come back down. I would sell now to have the capital ready to deploy once you find something down here. Take your time to drive and walk around different areas before you buy. North, south, east and west county all have a different feel. Check the commute, schools, crime, parks etc. before deciding. With inventory at historically low levels it's best to include several cities/neighborhoods in your home search. 

@Alfredo Limon

How much equity do you have in the home? Is $2,800 market rent? Rents tend to trail housing prices. A cash out refi would likely make your scenario cash flow negative. 

The argument against holding it is that you have to deal with managing from another state with higher fees and you might be able to find a better cash flowing asset in Texas. When you run your numbers make sure to factor in the selling costs if you decide to sell. If you didn't live there for two years you will likely have to pay capital gains taxes as well.

@Vu Trinh

If you're interested send me a connection request and I can send you a detailed guidebook on ADUs specific to San Diego County.

@Austin Gabriel

Welcome Austin, nice to meet you on here. Send me a connection and I will share my CPAs info. Their office is in San Marcos.

@Adam Blandford

Definitely look into putting that VA loan to work. It's the best loan available. Check with a local lender who is familiar with VA loans and can review your situation.

@Cathy S.

I would consult with a real estate attorney before you discuss the terms with them any further. Since you inherited this tenant, and might not know their full history, you should have someone review their lease and situation just to make sure your not dealing with a professional tenant trying to play the system. 

I have a CPA in San Diego that I recommend.

Quote from @Al Caan:

Hi Bigger Pockets:

So I have 5 units in a cash flowing market, section 8 and yes I have tenants that don’t pay etc, my question are:

1) the area does not appreciate like San Diego, so shall I buy more of these ~$60k ~$400 net cash flow, or shall I buy in better appreciation markets?

2) With the properties not appreciating much, can I BRRRR and pull my initial investment back out so I can grow?

Thanks

Why not take the hybrid approach and do both? Can you keep you cash flowing properties and still buy something in an area more likely to catch some appreciation? This will help you keep a more diversified portfolio. 

@Darren Rogers

I will gladly share my CPAs info. Feel free to connect.