All Forum Posts by: Nick Foster

@Shaun Shiraishi, based on what you presented you can either get a nice place for you and your kids, or live inland and share your surroundings with three strangers (if you purchased a four-plex, lived in one and rented out three units).

Putting family first I would do option 1. Personally, I would rather have a comfortable place for my kids in a nice, safe area, with good schools, more than dollars coming in the door (family > money).

@Jairo Castaneda-Gomez, ignore the garbage/spam post above from Jackie. Not sure why that post is not removed yet.

Anyway, welcome to the site and good luck. Digest all the free podcast and free information you can available on this site and the internet. Then seek out specific questions on BP by searching the topic to see if has already been answered. If not, post away.

I've looked at buying SFH in Temecula a few times, because housing is cheap (in comparison to coastal SD), but my strategy ultimately is to stay coastal SD with STRs.

@John Timber, this is a no-brainer - move to San Diego.

Quality of life alone, San Diego dominates Indy (and every other city in America) hands down. You will move here, enjoy the weather, food, beaches, etc.

@Jordan Mantel, congrats on submitting your first offer. Since you are a first time investor proceed with caution. Here are some check-list items:

* Do the CCRs allow for rentals?

* Are the majority of condos rentals? If so, you will be unable to qualify for conventional financing.

* Review and scrutinize the operating statements of the HOA. Those dues are on the higher end. Why? Does the HOA have enough reserves to cover future maintenance? If not they will ask for a contribution from owners. One $1K contribution request and your cash flow is wiped out for the year.

* are there any items/appliances in the condo that need to be replaced? If so, your cash flow can be wiped out for a year.

*did you take into account paying property taxes on $250K and paying insurance? Many newbies overlook this in underwriting.

I know it is exciting submitting an offer, however, this deal looks slim with no margin of error, which I personally would pass on. I hope the above items help you and good luck. If this doesn’t work out, no worries, the best deals often take a lot of patience and time to find.

@Ron Trinh, congrats on building your nest egg. The challenge you face IMO is you reside in an expensive market. Given your situation you may want to save up more $, purchase a residence for you and your wife, get another job (or start your own tax practice), save money again, then invest locally to learn the ropes of being a landlord.

Those that are full-time REI are typically already wealthy. Most wealthy REI are high-income earners, such as attorneys or business owners. They work and then invest with their excess cash.

Just my two cents.

@Jacob Walls, name It whatever you want to name it.

I Hope This Works, LLC

Don't Tell My Wife, LLC

Please Don't Sue Me, LLC

There was a story of a kid who won the lottery and accepted the winnings in his newly made 007, LLC. For sure this kid went out and bought a submarine and a tiger.

@Jordan Max, based on your above comment, it may be a good idea to reach out to top performing African American real estate agents in D.C., as well as business groups within DC with many African American members.

If you believe the lack of success is due to race, then It would be a good idea to heavily network with successful real estate agents of your race to see how they made it.

@Jonathan Douglas, send me a message. I have worked with a qualified 1031 exchange professional out of Del Mar area on a few deals in San Diego I can refer you to.

@Derek York, I also live in Carlsbad, one of the most beautiful cities in the US. If you and your dad are first-time real estate investors, my advice would be to try and buy something near you. If you got the cash buy Carlsbad. If you have less cash, head east on the 78. Be patient on only buy if it’s a great deal, if it’s not pass. Learn the ropes of being a landlord. Being able to take a short drive to your investment if something breaks is a great peace of mind.

@Kendra Mattson, always consider worst case scenarios. They abandon the van, you now need to pay to tow the van. They are disruptive tenants, now you need to confront or pay to tow them? They trip and fall in your driveway and threaten to sue you, now you need to pay an attorney to defend yourself. They dump motor oil in your garden, what do you do?

I wouldn’t proceed with the arrangement without a written contract in place on what they can and cannot do. Even if it’s just a few hundred bucks a month in rent, you could potentially open yourself to thousands of dollars of risk/liability if things go south.

Just my two cents. Always get a contract.