All Forum Posts by: John Reardon

Cathy you want to try and identify opportunities to add value to a space. That might be in the form or layout adjustment, better utilization of the floor plan, or renovations. The more sweat equity you can add the better forced appreciation opportunity you have. Look for bonus rooms or unpermitted spaces that can be brought up to code or converting garages into ADU's.

Welcome @Cathy Song and @Jared Aquino!  Check out SDCIA RIA.  I help manage the volunteers.  Our meetings have been virtual as of lately.  Its a great place to start getting connected.  Indeed these are wild times! San Diego market for long term buy and hold can be challenging due to price point and cash flow constrains. Sometimes that requires creative options such as house hacking, renting by the room, or optimizing the property to increase rents. Once the moratorium on evictions lift (currently at time of this post that is the end of Sept 2020) we might see some tired landlords ready to sell if their tenants cannot pay rents.

I have a client who is entertaining the idea of purchasing a vacant lot in spring valley.  I am their agent and he is inquiring about potentially purchasing a manufactured home on the lot.  I brought to his attention that he will certainly need to get approvals and permits to be allowed to even place the home on the lot.  His biggest concern is what the costs are to run the utilities ie: power, sewer, etc.  Any developers want to chime in and point out anything he should be concerned with.  My client has a budget of about 375k all in and is evaluating either buying a fixer in a C neighborhood or potentially buying a lot and manufactured home.  Thank you in advance your insight.  What costs might he expect, issues with permitting etc?

All points are quite valid.  However if I buy for cash flow and local san diego mf properties arent cash flowing I dont seem very tempted to purchase for appreciation (especially considering the next few years could be low or even negative appreciation).  What market data are you seeing where cap rates are still strong?  I have a friend investing in parts of ohio and looks very promising.  

I am a San Diego realtor and broker. I have been seeking a multi family complex where I can house hack for a couple years now with no luck on anything that remotely makes sense. All the deals I analyze are negative cash flow. Tempted to go out of state to start in investing and continue renting locally. Many believe multifamily is facing a bubble. Best to just wait for a correction or crash in the asset class or move forward if the numbers work? Thanks

The way I found a great property management firm to work with and refer to my clients are by vetting them myself and asking good questions.  I am on the board at sdcia real estate investor club and one our sponsors is a property management company.  I have been happy with their communication, follow up, honesty, and ability to take ownership of situations.  Let me know if you need a referral. Glad to help.

Hi Elisabeth, you certainly have plenty of options.  At this point it seems like you guys decided selling is the best thing for you.  I would be happy to chat further.  I have an active database of over 3,000 buyers and hundreds more cash investors.  I'll pm you. If I can help, glad to do so.

Curran, as a fellow San Diego agent,broker, and wholesaler it really depends. Do you work a full time job or will this be your sole focus? Do you want to work traditional real estate or as an agent for investors. So investor friends of mine don't have the patience it takes for the retail end. Lots of emotions. Working with investors cuts the emotions out and our more about the deal. Prove to them you know your stuff and don't waste their time unless it's a "deal" and it could be a very great relationship. I am local in the little Italy area and know La Jolla is its own animal. Nothing's going to cash flow, maybe the potential for a flip if bought correctly. Also, do you have funding?

Hi Joey, looks like your current downtown SD condo is cash flowing for the time being with your str strategy. When you purchased it was that the long term plan? Some might find it costly to hire management or too time intensive to manage the turnover involved. The real unknown is the HOA regulations that might enforce str for longer than 30days. If that comes into question you might have to revisit your long term strategy and either rent the unit out year round but after running the numbers you might find you won't break even or lose money... The market is still hot and could be a good time to consider your next move if considering a sale.

Hi Sam, average cap rates can cart but Oceanside is still considered a more affordable coastal community. Cap rates could get in the near 5-7% possibility higher in spotty areas (C). I would account for at least a 5-10% vacancy rate. It depends on the exact part of town and the ability to screen for strong tenants. Attractive complexes don't last long. I recommend having financing ready so when you find a deal you can move on it. Let me know if you have any other questions. John