3 Hot San Diego Real Estate Investing Strategies in 2021
(Please note: The below is a (not so great) word for word transcription)
Hey, what’ going on? It's Scott Taylor, with sandiegorealestatehunter.com.
Licensed in the state of California, for both real estate and mortgages, with an emphasis on San Diego.
Now, I hear a lot of growing going on in San Diego, that there's no good real estate investments anymore you can't fix and flip or you can't create value.
Now, backtrack a little bit;
I'm a real estate investor [inaudible 00:00:35], buying and selling real estate in San Diego since the age of twenty one, in two thousand and eleven, [I'm sorry], in two thousand and one, right after nine- eleven.
I’ve done things like fix and flip and fix up the kitchen and the bathrooms and the floors and just painting it or I spent more money.
I’ve done things in the human empire [inaudible 00:00:54].
I have done things overseas, in Argentina and Brazil and Panama and Nicaragua.
So, this is how I think, I think how can you… even if you're living there, you want to buy smartly and create value.
So I wanted to create this video;
3 hot San Diego real estate investing strategies that you can use right now.
Here's a quick rundown of our list:
- #1, Create value
- #2, Another strategy that I never hear anybody talking about
- #3, Short term rentals
Whenever you’re watching this, 2017, 2018, 2019;
wherever you're watching this it's prime for this.
#1 Create value.
Now, I will agree, maybe it's not at the best time to find that fix and flip where, you buy something extremely under value, put some carpet, paint and tile and paint it and sell it. Sure, here's one great strategy that you can use.
You know, there's an area with a high cost per square foot, a lot of areas in San Diego, right. Here’s some hot areas.
Areas like Mission Hills and North Park and Normal Heights and Hillcrest of course and Talmage. And areas that have a higher Kensington, higher cost per square foot.
What if you bought that one bedroom, one bath or that two bedroom, one bath or that three bedroom, one bath at four, five, six, seven hundred dollars a square foot and you created value. You got a general contractor or architect, maybe permits of course and you did it at two hundred dollars a square foot or three hundred dollars a square foot.
So, you do the work at three hundred dollars a square foot, it's worth six hundred dollars a square foot.
Three hundred dollars a square foot that you create value on equity right there.
That's a great strategy, number one.
#2, another strategy that I never hear anybody talking about and this is because I’m licensed in real estate and mortgages and I understand how to put things together, is what if you used an F.H.A mortgage and instead of just buying a single family, where you can go to that six forty-nine seven fifty.
What if you bought a duplex at up to eight hundred thirty-one thousand dollar loan amount or three plus, up to just over a million.
Or four plus, about one point two five million loan amount.
What if you only put down three and a half or four percent?
Four percent on a million dollar loan, is forty thousand dollars.
What if you use forty thousand dollars to hold something value a million bucks?
You lived in one unit, you rented out the other units to cover your actual mortgage imagine the appreciation that you're forty thousand is going to get
A million dollars, it only goes up, half of what?
Four percent for forty thousand, to then get half of what you put in.
I mean, think about that, think about that [and I'm not a C.P.A.].
Think about the tax revenue to get on that. Think about how smart that is.
Think of, if you leverage that where things are going to be in a year or two years or three years;
very little skin in the game to hold something worth quite a bit, in the area [let's be honest],
I don't know for sure what's going to happen with values.
They can stay the same, they can go down or they can go up.
Thinking big picture, the next couple of years, let’s be real, looks like things are probably going to go up, especially if you buy smart.
#3, short term rentals.
Now, I don't know if you've ever traveled, I don't know never stayed some place, but there's fantastic websites like, Airbnb and Home away and Vrbo.com and even Craigslist and a lot of places…
Now, look at how much stuff costs to rent.
I mean, you're talking about two bedroom, two bath condos in Normal Heights that you could rent out for two hundred, two fifty, three hundred dollars a night.
Let's do simple math.
If you had fifty percent occupancy at two hundred dollars a night, that's three thousand a month on a two bedroom, two bath condo [inaudible 00:04:45].
Imagine those numbers, imagine if you bought smart, put down very little money or maybe you have some money and put down and use one of the companies in San Diego, that either rent out via Airbnb, where you pay them a fee or you did it yourself.
The return on investment on those is outstanding.
So, maybe, don't think about, I don't want a tenant in there to sign a year lease because the rent probably covers the mortgage.
Be a little bit more smart about that, think,
“Hey, or starter”.
Think about you rent it out per night or per week and look at those, go to websites like Airbnb.com, vrbo, Home Away.
Look at those, what they're renting out per night, ask those owners, say
“hey, how often do you rent this out?”
then run those numbers, it’s very simple.
Here's what they collect in rent after all fees, here's how often they are rented, here's my return.
That looks pretty good on the purchase price,
then guess what?
Use me, go to sandiegorealestatehunter.com.
Get signed up to get real estate listings, find out what’s active, pending and sold in any area of San Diego, then talk to me; say,
“hey Scott, here's what I’m looking at doing, I want to either create value or I want to buy, own or occupied two or three or four unit. Or I want to do that short term rental strategy; help guide me on that.”
And then, I am going to say,
“Guess what? Go to scottsloanapp.com,
In twenty minutes or less, you fill out an online application, smart device or computer, it doesn't matter what.
I’m going to get tax alerts and I'm going to call you up, I’m going to run your credit, we’re going to go over your application to make sure it's correct, your credit report and make sure it’s accurate, your credit score to make sure that we can go with the program.
From there, I'm going to send you a list of supporting documents that you can upload via my secure server, things that you know that you need; drivers’ license, social security card, last two years tax returns and W2s, last four month’s paychecks, last two months banks statements, all pages.
Depending what your credit report says, maybe Chapter seven or thirteen or short sale or foreclosure or child support, alimony, decree etc., etc.
Once again, go to scottsloanapp.com to get started if you like any of these ideas.
Leave me a comment below – or, contact me here.
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