All Forum Posts by: Vincent A. Cipollone

I would also be interested. I am itching to do some networking!

I'm not going to pile on with what everybody else said but I will say that things cost different in different places. The same job in Brooklyn, NY will cost different than San Diego, CA or Jacksonville, FL. However, what you CAN do is develop a solid statement of work, itemized with EXACTLY what you want done. I would also consider purchasing J Scott's The Book on Estimating Rehab Costs. This will give you an idea on a range of what things could cost and what each piece of work entails. It is by no means comprehensive but it's a start and will get you educated on this. It even provides sample Statements of Work for each thing that needs to get done.

Joseph, here are some rapid-fire things you should know about the VA Loan:

- You must INTEND to live in the property and occupy the property within 60 days. However, there are ways to get around this legally, such as PCS orders, a growing family, among various other ways.
- All major systems (electrical, plumbing, HVAC, etc...) must be operational and the property be habitable. This means no holes in the roof or other things that make BRRRR a really good move.
- You must have enough VA entitlement. This is a weird calculation done by the VA and you could obtain a certificate of entitlement that shows how much you've used, if any. However, with COVID-19 causing issues, I haven't been able to obtain mine and certain loan limits have been waived. Anyway, for illustration's sake, I bought a townhome in the Jacksonville, FL area for $137k and with the funding fee, it came out to a $140k loan. That used $36k of my entitlement. It's not quite as cut and dry as that, but since San Diego is a HCOL area, it gets supplemental entitlement.
- You can re-use your VA entitlement. The best way to do this is to refinance your loan to a conventional loan after obtaining 20% equity. This frees up your VA entitlement for future use and locks in a 30-year owner-occupied fixed rate for your rental property once you move out and do it again!

I am by no means an authority on the VA Loan but I have used it before. It can be kind of complicated to understand but like JFK said (paraphrasing) "we don't do things because they are easy, we do them because they are hard." The hard thing are worth doing because nobody else wants to do them and that makes them lucrative!

Also, @Connor Nellans is killing it  and helped me a bunch with investing in SD (I'm likely PCS-ing there in July 2021) and I am working with @Kenneth Donaghy to help me find a MFH house-hack. Let me know how else I can help!

Bottom Line Upfront: What's a good neighborhood in San Diego that would be a good candidate for a live-in flip/rental that you would feel comfortable living in with your spouse and mother for three years while you deploy for nine months at a time?

More Details:
I am military and looking to transfer to sea duty in San Diego around this time next year (July 2021). It is not set in stone but I figured it was a good time to explore my options in terms of where to live. Since I will only be there for 2.5-3 years, I don't think it makes sense to buy a place that would be considered a "forever home" that wouldn't rent for what the mortgage payment would be (I intend on using VA benefits).

I'm looking for a neighborhood that is safe (for my spouse and mother while I am gone), has an acceptable commute to NAS North Island, and would fit the requirements of a flip OR long-term BRRRR-style rental. My goal is to sell the home for a profit OR rent out the home in 2023/2024 when I leave San Diego for my next assignment. I am trying to avoid purchasing a turn-key property that I would take a loss on or would not cash flow once I move on from SD.

I am very early in my search for a property so real estate agents, feel free to reach out with the understanding that me going to SD may not materialize due to needs of the Navy.

Disclaimer: I am not a licensed financial advisor, just a guy who loves personal finance.

This is what I would recommend in order of importance based on the information provided and some assumptions:

1. Set aside three, six, nine, or twelve months income as an emergency fund for both yourself and your wife. Pick which time-frame best fits your respective industries (i.e. more for sales jobs, less for government jobs)

2. Pay off all high-interest consumer debt.

3. If you and/or your spouse are eligible for a high-deductible health insurance plan, set up a Health Savings Account and max it out. HSAs have "triple tax benefits" meaning pre-tax money goes in, it grows tax-free, and you can withdraw it tax-free as long as it's for medical expenses. I highly recommend researching this.

4. Max out your 401(k) or equivalent workplace plan with Roth (post-tax) contributions. Your wife does the same.

5. Open (if you haven't already) a Roth IRA and max it out. Your wife does the same.

6. Invest in real estate however you want.

I made some assumptions that you have a W-2 job and live like 99% of the population. Apply whatever is applicable and toss whatever is not applicable. It's important to help yourself first and set your retired self up for success. It's not sexy but it's essential.

Just a quick note, I didn't look up specific figures for this. Also, I'm more well-versed in personal finance as opposed to real estate.

On Christmas Eve 2019, stocks took a huge dump. It was one of the largest one-day drops in the ten-year bull market. What was the reason for it? I don't remember and I don't think there was one thing that caused it. It turned out that Christmas Eve was the bottom in that short-lived drop. However, while we were opening our presents, we didn't know how long the drop was going to last. Some thought it was "THE" drop. Turns out they were wrong.

Nobody knows when we're going to bottom out or even IF we've already bottomed out (depending on the market, of course). Much like stocks, the best thing to do is stick to YOUR plan that you had before all this happened. Things may be different now, and you should certainly see how the market you're operating in has been affected. However, most of the experts say that this is not the seismic shift that 2008 was. 

Ultimately, you're going to do whatever it is you want to do. Focus on the deals that make sense now and will continue to make sense. People are still going to need a place to live. If anything, this is a great reason to up your vacancy reserves.

Anywhere in Florida. Throughout this whole pandemic, they were the last to close and the one of the first to reopen. My mom lives in my home outside the Jacksonville area and she tells me it's largely business as usual. There's no state income tax, the roads are (mostly) wide open and without potholes, and the weather is fantastic. If you live in South Florida, you're more susceptible to hurricanes but it's a small price to pay to live where the rest of the world vacations. There is also Disney in the middle of the state if you're into that. Also, outside of Miami, the home prices are incredibly reasonable. There are even tons of Canadian snowbird from Ontario and Quebec in the Ft. Lauderdale area!

I can't say enough good things about Florida.

When I was planning on renting my townhome in Orange Park, I was going to use Tiea Vincent at Round Table Management. Circumstances changed and I didn't end up renting it but that was who I was going to go with, for what it's worth.

If you're looking for a multi-family, good luck. They are certainly not the norm in the area and many have been scooped up by investors. Also, many are in "historic" districts and have different permitting requirements and you are limited to how you can adjust the exterior.

As for good vs. bad areas, that is subjective. I own in Orange Park on the Oakleaf side that used to be my primary residence. If you're in Columbia, it may be beneficial to spend a weekend just driving around. Jacksonville is the largest city in America in terms of land mass, so two people could live in "Jacksonville" but live 90 minutes away from each other.

Jax Beach is popular and out by St. Johns Town Center is getting built up like crazy. Out west, where I am more familiar with, are lots of families and the further west you go, the more country it gets. Also, around 103rd and Normandy (two separate streets, not necessarily an intersection), you might have a rough area or two but I don't think it's a war zone.

It all depends on what you are very specifically looking for. Also, it has become a seller's market in recent years so be aware of that. My 3/2.5 townhome in OP went from $137k when I bought it in 2016 to $180k today through no action of my own.

How far are you looking to be from DC? The HOA fees generally get lower the further out you go, but if you are working in the city, then you will have to deal with DC traffic, especially from Virginia on 395. With your price point, I think Maryland (Prince Georges County and maybe some Montgomery County) are more up your alley.