All Forum Posts by: Nick Kravchuk

@Matt Adelman no I sold

@Jay Hinrichs  great points to consider, thanks. Not 2 pools one large L shaped pool and a hot tub. 

@Gina DiMasi Thank you! yes I have thought about the STR, but it is quite the leap of faith to spend all of the money upfront with all of the required furnishings with no guarantees of bookings and then also I don't know if I would be able to devote the required amount of time that is needed for that. If I went the Property Management route they typically charge 20-25% which would eat all of the profits.

@Theresa Harris good points to consider, however I have found in San Diego that tenants here will pay a premium for a nicely upgraded rental home, but the cost of the roof and other expensive items worry me that it will take me years to recoup that investment. 

Looking for feedback on here on whether to sell my current primary house or turn it into a rental. I have recently just renovated the kitchen with high end appliances and high end upgrades. I have also put in brand new carpet on stairs and all of the upstairs.

Here are the numbers from what I bought it for and if I were to sell and what it would get for rent:

Sell Scenario:

Purchased for $830K in June 2017

Put $60k into it, to include:

-2 New AC units

-2 New Furnaces

-Completely new kitchen/high end appliances/countertops

-New carpet throughout upstairs

-Light guest bathroom remodel(new tile floors/countertop/Painted cabinets)

Estimated sales price: $950-$975K

Estimated closing costs if sold for $965K: 2.5% commission to buyers agent/closing costs=$35k

Outcome If sold for $965k minus closing costs/commissions(only have to pay buyers commission) I would be left with a $40K profit from what I purchased it for and what I put into the house. I also put a large down payment on this house and would be left with around $338K in cash after loan payoff. 

Rent Scenario:

-Estimated monthly rent:$4,500-$4,900 

-Total mortgage/landscaper/pool man=$4,100

-Potential to cash flow between $400-$800 a month

-Principle monthly pay down of mortgage is $980 a month

Also since this house was built in 1989 a lot of the big ticket items are coming to the end of the lifespan, such as:

-New Roof Estimated cost: $25-$30K

-Pool/Hot tub Resurfacing/new tiles: Estimated cost of $25K

-New Fence: $7K

-New Windows: $25K

Total Estimated upcoming expenses in the next 5 years=$85K

With all of that being said looking for input on whether to hold or just sell and move on.

Here are some pictures of how it looks now

If you have walked into the sales office without your Realtor on your first visit, the builder will not pay your Realtor a commission. The Realtor must be with you on the very first visit, builders are very strict with this. Also most builders won't negotiate on the price, for a couple different reasons. One being what Russel mentioned with other people in the community being upset or mad that they paid full price and then it sets a precedence. It also could hurt the builder with future appraisals. From my experience the Realtor can help negotiate with the upgrades, the builder is usually more willing to negotiate on these than with price, as the amount of upgrades given will not show up on the county records, just the actual sales price.  

@Rami Nasrallah the listing agent might have said no way to your verbal $500K offer, however it becomes a lot more real when the offer is put in writing and presented to them. Especially in this market where I think a lot of sellers and Realtors have not yet comprehended that the market has adjusted and the seller is no longer at the advantage.  Feel free to PM me for a more detailed answer and approach to this. 

@Jacob Ferguson feel free to PM me any questions you might have.

I'ts not a local San Diego lender, but I recommend Third Federal. 

@Meng Long I would recommend buying a single family home that needs some cosmetic work to live in as your primary residence, using your VA loan. Live in it for a year to meet the primary residence rule, make the cosmetic repairs to force equity, then look into refinancing out of your VA loan into a conventional loan, so you can use your VA loan again. I work with a lot of VA clients, and I myself have used this method to accumulate properties here in San Diego. Please feel free to PM and I can tell you the areas where I feel have the most ROI using this method and potential for appreciation in San Diego.

Hi James, thank you and your wife for your service. My advice to you and your wife and my own personal method for someone who also lives in North County San Diego(Escondido) is to take advantage of your VA loan and buy a primary house first. I would recommend finding something that would need some light cosmetic work that you can automatically add equity to. Live in this house for a year or two and then turn this home into a rental, and purchase another primary residence. I also feel that Oceanside has great appreciation potential in the future as it is one of the last beach cities in San Diego that I feel is undervalued. If you would like to talk more in depth feel free to PM me.

Parts of City Heights can be in rougher areas, tenant pool to choose from will reflect.