All Forum Posts by: Rod F. Hatefi

Hi @Hanin Smith,

Welcome to BP! I have been an investor and Realtor in Carlsbad / Encinitas for the past 16 years. I'm active in all 5 zip codes as well as the rest of North County. I specialize in residential real estate financial analysis and transactions. 

Encinitas is hot and good rentals don't stay on the market long. Feel free to contact me if you're looking at a particular neighborhood.

Best,

Rod

Hi Bianca,

Kensington is a sought after neighborhood. And depending on the condition of the property, $1.85 per Sq. Ft. in rent is a respectable amount. You would have probably earned 3% Cash-on-Cash return with 20% down in the first year and doubled your investment before 10 years (i.e., income + appreciation).

By the way, I assumed that the duplex was actually a single unit. $550K for two units would have been a steal ;-)

Let me know if you need some help finding another rental. I'll be happy to help you come up with a game plan and crunch the numbers.

Hi @George Alves Jr, 

You'll find Class C MFH in Oceanside, Vista, San Marcos and Escondido at decent cap rates. In Riverside, you'll do well in Downtown Riverside, Jurupa Valley and Mira Loma. 

Drop me a PM with your investment requirements if I can be of further assistance.

Hi Terron,

I think you should consider the following risks with your proposed strategies:

1. Are you ready to enter the business of owning a rental property? The risks are higher with out of area holdings that you entrust to others to manage for you. 
2. Be careful not to over-leverage yourself. You need to maintain a comfortable cushion in order to cover your inevitable vacancy, maintenance and unforeseen expenses. That's why it's a good idea to put down at least 20%-30%.

You may want to consider coming up with the down payment for your investment property and getting a direct purchase loan. In that way, you don't disturb your nest egg / equity in your primary and prevent getting over your head in debt ;-)

Feel free to PM me if I can be of further assistance.

Best,

Rod

Hi Hayley,

I know a CPA in Irvine that works with some of my clients. Feel free to PM me for his coordinates.

Prices have already started to moderate and I think we've seen the top of the market for some time. And here are the reasons why I don't think we'll see much of a slow down anytime soon:

1. They don't make much more land in Coastal San Diego! The supply of available land here s very limited and there are plenty of cash buyers, mostly Baby Boomers and some foreign nationals that will continue to vie for the limited inventory.

2. Current homeowners are aging in place and don't want to sell if they can help it. 

3. The supply side is constrained by regulatory hurdles and excessive costs. MFUs/apartments are the growth driver for new builds. So SFR rentals will continue to demand premium rents.

4. The job market here is going strong and even if there is a recession, interest rates will continue to be depressed. Should interest rates go up, they won't go up much because the rest of our national debt ridden economy could collapse. 

Hindsight being 20/20, there's really never a good time to buy when you're in the moment (i.e., it's daunting during a recession and lending is tight. It's likewise daunting when prices are high and you're looking for cashflow only). You should therefore always shop around and be careful in what you invest in. But given that you have a 10 year time-horizon and a buy and hold mentality. don't be afraid to pull the trigger and fast!

I hope this helps!

Rod

Hi Bianca,

I just helped an REI client acquire a SFR detached rental in a great SD neighborhood in your price range. The house was newly remodeled and rented out in less than a week to a highly qualified tenant.

There are a lot of variables to consider before jumping into a MFR. I would strongly advise that you start out with a SFR, learn the ropes and then consider the pros and cons of upgrading to a commercial property (i.e., more than 4 units). It's an entirely different playbook.

As an investor, property manager and REALTOR, I'll be happy to help you build a rental income portfolio for a secure retirement. Feel free to drop me a line and let's chat at your convenience.

Best,

Rod

Landlord: A person, especially a man, who rents land, a building, or an apartment to a tenant. Female: Landlady.

In every-day usage, I think the simple title "the owner" works in most situations. I often find that tenants prefer to work directly with the owner or landlord and use these terms interchangeably.

IMHO, there's no shame in using the title landlord.  After all, this is not a self-designated and made-up entitlement. And a good landlord is much better than an average property manager ;-)

Best,

Rod ~ sdlandlord.com 

You may be opening yourself up to liability from a prospective or future tenant and by the current owner. I may be too conservative, but you really ought to have possession before advertising or committing the property to a leasehold. This means waiting to have the walk-thru, recording the grant deed and getting the keys to your new rental ... Congrats!

Hi Thomas,

To answer your question, it all depends on how much cash you want to put down and how much risk you're willing to take-on. There are some good neighborhoods in North County that offer a favorable risk/reward ratio.