All Forum Posts by: Maxwell Ventura

@Jasmine H.

Where in California are you located? 

@Shankar Sridhar

The SD market is appreciating at record rates right now. 6 months ago I would have said you can find a decent duplex in a decent neighborhood for as low as $550-600K. Now, not so much. You almost have to be closer to the $700K range.

Our year-over-year inventory has been hovering -40-45% less for the past 6 months. The 2-4 unit space is even more competitive. 

If you're going FHA you'll be looking at duplexes because of the self sufficiency rule preventing you from looking at Tri's or Quads.

If your budget is around $650K-700K you'd be looking at mostly duplexes anyway. 

Best areas to find something like this right now include but not limited to: Sherman Heights, Grant Hill, Logan, City Heights, Rolando, Chula Vista, NAT city, lemon grove, IB

@Dmytro K.

Contrary to popular belief the downtown market is performing very well right now. Especially when you look at year over year #s for actives, pendings, solds, DOM, median sales price, etc.. 

I foresee the downtown scene exploding over the next 5-10 years w/ all the various slated projects. The most recent: Manchester PG announced 2/3rds of their project is going to Biotech and creating a new district along the harbor. RADD: Research and development District. Downtown is going to get very expensive. 

Regarding HOA amounts, they will vary greatly across all of 92101 and within the 6 districts. This is something that will obviously effect your bottom line. There are over 100 different condo/townhomes within 92101 alone.

@Ray Alvarez

Congrats on your closing. 

Finding tenants is not hard. I'd put more emphasis on your screening process. 

Believe it or not, you could make an argument the rental market is more competitive than the purchase market. I just spoke w/ a property manager that had 80 applications on her rental. 

@Zackary Voss

I have clients that prefer to invest OOS and locally. 

My advice, prior to committing to OOS, take a hard look at your would be total return (not just cash flow) by investing locally AND looking into house hacking. SD's strength is in compounding growth through appreciation. By house hacking you can get into a property for little to money down. 

Benefits of this will be a much greater return on you initial cash outlay when factoring in all benefits of REI: CF, APR, Tax benefits, equity build through principal reduction.

Happy to elaborate further via a spreadsheet. 

Hope this helps.

@Amanda Dantés

Hey there, you mentioned Southern California but that covers a ton of ground w/ different price points. LA? OC? IE? SD? Etc.. 

Regarding pure cashflow, OOS investing will perform better than most of CA. Remember, CF is just one portion of your return. 

I'll use SD as an example here strictly because I live and work here. SD has a very high and consistent appreciation rate. By going owner occupied down here, you're able to come in w/ little to no money down and maximize the return of on your investment through appreciation. When factoring in appreciation on an already higher priced piece of property, THAT portion of your return will compound every year, maximizing your return.

Now, if you're not going owner occupied and it's going to strictly be an investment property, then you obviously have to consider the amount of money it's going to take for your down payment. 

A happy medium could be looking into a STR in a destination area. Palm Springs, Joshua Tree, Idlewild, Big Bear, etc.. Occupancy rates in these areas are very strong if you have a turnkey property. And you may not need to necessarily break the bank. You can also find something you can drive too.

I have clients that invest OOS / long distance and that's fine. Just need to really do your due diligence in building a great & trustworthy team. 

@Jon Anderson

In San Diego County sometimes getting a "good deal" is simply the ability to acquire a property right now.

It's very competitive. We have approximately 40-45% less inventory than we did this time last year. And that percentage has been consistent for the last 6 months. Real estate investing in itself is inherently a "good deal" when you consider all the portions of your return. Cashflow, APR, tax savings, principal reduction/ equity build.

A spreadsheet will illustrate this quite well. A "really" good deal will come from the value add after acquisition: Renovations, ADU play, leveraging non optimized zoning.

San Diego is a buy and hold market IMO. It's one of the safer places to invest in the entire country when you consider the low supply / high demand, lack of areas to build, and exploding economy. Not to mention one of the best climates in the U.S.  

@Twana Rasoul

@Josh S.

Downtown HOA prices will very greatly throughout the 6 districts throughout 92101. Between all 6 (Little Italy, East Village, Cortez Hill, Gaslamp, Marina, Columbia) Little Italy is pretty reasonable. HOA's will vary from roughly $200-$500 w/ some exceptions.

East Village, Gaslamp, Marina will start around $500 and go up from there. As far as condos & lofts go in downtown, little Italy is among the best bang for your buck. You get the young professional atmosphere w/ incredible walkability w/o as much riff raff as you get throughout the rest of downtown. And the homeless situation is drastically better than gaslamp or eastvillage. 

North Park & Little Italy HOAs are more similar than you'd think. Very different vibes of course. 

Hope this helps. 

@Ray Alsaigh

We're having a REI meetup at our downtown office (in person) tomorrow at 4:30. We'll have guest speakers talking about the ADU process too.

DM me and I'll send you the invite link (It's free).

Thanks, 

@David Antunes

My entire team uses the same group of guys for every transaction when we represent on the buy side. Scott & Steve from 3B Property Inspections. They are the best. Hands down. 2 incredibly passionate individuals. They love what they do, their reports are super thorough, and you can call them at a moments notice to ask any questions. 

Very helpful and caring. 

DM and I'll shoot over their contact info.