All Forum Posts by: Maxwell Ventura

@Paris Capers

You can absolutely do out a cash out re-fi, and it's one of the best strategies for growing your portfolio. Tax Free Money. Important to get w/ a great lender who won't charge outrageous fees so that it makes sense. I have a handful of great referrals for you. 

As far as the tenants go. You can always do cash for keys if they are willing. Can be a delicate situation right now w/ the eviction moratorium getting extended until end of Jan 2021. 

However, if your rents are around or at market value right now that is actually a positive for an investor coming in. Unless the townhome needs to be renovated first.. 

Hope this helps

@Deanthony Quarles

Call me biased but San Diego is going to be one of the best house hacking opportunities in the country. If you're able to purchase owner occupied w/ low or no money down, you'll be hard pressed to find a better return on your money anywhere else. 

Main reason being is because of appreciation on an already high priced asset, and taking into account the low supply / high demand & San Diego's future projected growth.

Appreciation doesn't care how much money you put down. 

My advice, take advantage of leveraging debt and exponentially increasing your return if you're in a position to owner occupy out here. 

My 2 cents. 

@Long G. Tran

I'm happy to help you analyze a deal, taking into account cashflow, principal paydown, appreciation, & tax savings. 

Thanks. 

@Schuyler G.

IMO, negative cash flow is fine as long as it's not for too long. SD is the long term play and through appreciation you'll experience large equity boosts over time. Compounding interest on an already highly priced asset. 

And rents will catch up. Rent increases follow appreciating real estate. 

I foresee SD continuing to go up for the foreseeable future for many reasons. Happy to discuss. 

@Kyle Fairbanks

Generally, you'll get a better return on your money going low money down w/ the duplex and house hacking. Use the additional funds for renovations or your next deal. 

@Anthony Horner

Bankers Hill & North Park are somewhat similar neighborhoods but very different than Mira Mesa. I live in Bankers Hill myself. 

What is your price point?

And are you set on SFR vs a Duplex? Different tax savings implications.

Regarding the CoVID lanscape, it's a mixed bag. You've got your percentage of people that are "over it" and walk around freely w/o a mask and the polar opposite on the other end of the spectrum. Finding a tenant will not be an issue w/ the low inventory and surplus of people here. 

Just be careful w/ your screening. SD is continuing to lean more towards tenants rights vs landlords. 

@Jesse Bartlett-May

Jesse, your long term capital gains tax should have been 0% if you hold for at least a year and your gain is approximately <39K (single) and <78K (married). 

Then from those numbers all the way up to the mid or high 400K you're at 15%.

Of course, you could defer any cap gains tax by partaking in a 1031 exchange.  

@George Zavala

Yes I am biased to investing here in San Diego. With that being said, I would recommend investing locally. 

1) So you have your finger on the pulse w/ whats going on w/ your property, and you don't have to hire a PM at first unnecessarily. 

2) If you see yourself staying in San Diego for the foreseeable future, it's an incredible long term play. 

3) If you have the opportunity to leverage debt (less money down) for an owner occupied property I'd recommend taking advantage of that to start building your portfolio. You'll experience a much higher return on your money. 

Hope this helps

@Christopher Radecke

When considering BRRR one of the most important factors is that first letter. The Buy. That can make the difference of "winning or losing." The deal is made at the Buy.

San Diego is a great BRRR market simply because SD is a great buy and hold market. Appreciation here will grow your asset quickly, increasing your net worth quickly. And in an appreciating market, you can expect rents to go up year over year.

One caveat: because of home prices, don't be surprised if you're cash flow negative in the beginning. This is okay as long as its not for too long. Obviously this depends on the financing, 

Another thing to consider, I was speaking with my GC yesterday and he mentioned how lumber prices have skyrocketed since September. Another "supply and demand" issue since the multitude of fires we've had. This will cut into your rehab costs. 

Hope this helps. 

@Joseph Gibbs

Leverage Non-Optimized Zoning = Taking advantage of opportunities on the lot such as building additional units, building up, additional sq ft, etc.. Whatever you can get way w/ that is permitted. 

Sometimes (not often) we see a SFR when the property is zoned for multi family dwellings.

You're on the right track w/ your strategy. Happy to be of assistance to you anyway I can. 

Cheers,