All Forum Posts by: Steven Straughn

Will is on the right track by recommending tile. I'd favor using a large tile (18x18 or 20x20), which will make for a quick and easy installation. By using a large tile, you should be able to go from countertop to under cabinet with one tile, which means you only have vertical grout lines. With the right tile, this can be a good look that will be very easy to keep clean. You can probably pick up the tile for around $1.00/sf at a wholesaler (look for closeouts or odd lots), and have it installed for $200-300 depending on which area you are in.

Theresa K. - I'm not sure about the availability of redevelopment funds that are available, but I would think that politics would put OB pretty far down on the list of areas that would be targeted. I think the "war zone" moniker is a bit hyperbolic, but compared to other beach communities, OB is certainly the roughest.

I think the market there is interesting because those who want to live there REALLY want to live there. They are attracted to the beach culture and are willing to pay for it, and there are generally not going to be many homes available in the area that will fit their needs and budget.

As for your question about the impact of the Navy, I don't think it's a factor in OB at all.

Hi Karen M. - I think you mean Ocean Beach, which is a community of San Diego. It's an interesting place, known for its hippie culture and eclectic residents. Part of it is known as "the war zone". That's the part in the downtown area (Sunset Cliffs Blvd at Voltaire) where most people are renting and there are a lot of transients. It is definitely an older area and there are certainly many opportunities to renovate. Being on the coast is harsh on a property, and the kind of renters who usually rent in beach communities are as well. But the rental demand is so high that landlords have little incentive to spend much to keep their rentals nice.

All that to say that no, there is not a lot of new development (aside from your beachfront properties) in the lowlands near the pier.

Hey Travis. I'm in San Diego as well, and fairly new to BP. I've lived in SD for 10 years and run a construction company that specializes in flooring and tile. My wife and I are closing next week on our first home, which is near Lake Murray. I don't have any personal experience with short-term investing, but I do a lot of work for rehabbers. It's tough to find good deals, but if you know the right people, there are certainly deals to be had. Good luck!

Update: The company offered us a contract that would reduce the rate for 2 years, at which point it would return to the original rate. I said no thanks. Seems they are willing to negotiate because they know that the economics of solar have turned against them.

Hey everyone. I understand your warnings and the pitfalls associated with living in a home while fixing it. My wife and I are in this together, and she is aware of what is involved.

David, our exit strategy is to sell in 2 years, and while I wish we could flip it in 60 days, that's just not feasible for us. Renting it out would be plan B if the market is terrible for sellers in 2 years.

Shari, I'll have to let you know if we manage to keep the house looking good so you can stop by and meet a contractor unlike any you've met before =) And while this might not be an "investment" in the eyes of many on this site, it is in my mind. It will be an investment of time and money that I believe will pay off when we sell. I totally understand your point about having to buy in the same market as we would sell.

Theresa K. - I was encouraged yesterday to see that 6602 Jackson Dr. is pending after 8 days the market. I envision our remodel being as nice, and perhaps a little nicer than theirs in certain areas.

Jon Holdman I appreciate your input and advice. Our purchase price is $430K (not $450K) and our closing costs are about $1800. I determined the ARV to be around $575K, with no allowance for natural appreciation. My profile picture must be pretty bad if I look foolish enough to purchase a home without figuring out the ARV first =) My intent in posting was merely to get other opinions and perhaps meet some BP members in the area.

Additionally, we will be renting one or two rooms to our friends, so we'll have $1000-1300 per month in income.

Daniel Craig - Not sure that I share your optimism, but I hope you're right.

Theresa K. - Steve Babiak is right on the money.

We do not have the capital to pay for remodeling right now, so we plan to work on it steadily over the next couple of years (and hopefully enjoy the home as well). Although, in the interest of being thorough, and in light of the appraisal, I am going to crunch the numbers to see what the numbers would look like if we tried to flip it.

Just received the appraisal report today - $470K!

There is a sunroom/covered patio off the back of the house, which is not included in the living area square footage. We plan to finish it and fully integrate it with the rest of the home, increasing the living area by 370 square feet.

Theresa K. - what part of town do you live and/or specialize in?

Update: We have notified the seller and the solar company that we will not assume the lease. The seller (bank) says that they will not allow the panels to be removed before COE. The company says that they will come out and remove the panels and inverter, leaving the footings and rack system in place, thereby avoiding responsibility for repairing the roof.

I decided to pass on the lease because for the same (or less) money I can make payments on a purchase option for a slightly larger system. The declining cost of solar has made their lease agreement basically obsolete. We'll leave the racking in place and use it for the new system.

Why anyone would take on one of these leases is beyond me.