Cash Flow Machine – 2 More Properties

2 San Diego Properties with 10% Cash-on-Cash Returns

I have 2 more properties showing in excess of 10% Cash-on-Cash returns. 

The first is in Logan Heights and is being offered at just under $350k.  It has 3 units and all have been upgraded recently so the cash outflow is low after closing.  This will take about $90k to close (25% down) and yield 10.6% cash-on-cash.  Cap rate if you manage it yourself is 7.5%.

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The second is in El Cajon and is a four-plex that needs a little work.  The investment is larger at about $145k and the cash-on-cash return is between 9.5 and 10.5%.  Cap Rate is 7.45%.

Are Market Signs Pointing Up or Down?

A Look at San Diego Real Estate Drivers

An encouraging sign has been developing in the real estate market.  The number of homes available for sale in San Diego is steadily falling and now sits 15% below the number available last year.  This is the type of trend I look for as an indicator of a changing market.  It is the reverse of what we saw happen in 2005 when the market hit the top.  So, does this indicate the market bottom is finally here?  I’m not so sure.  There are four reasons I am questioning this data:

• Distressed Inventory.  50% of our sales in the county are distressed (short sales, foreclosures, or homes that have been foreclosed on in the last year).  That percentage has been over 50% for quite some time.  Since that is one-half of the current market, what happens to the supply there is key to how San Diego goes over the next couple of years.  According to the online magazine eForeclosure, Notice of Default filings started rising again in August.  With employment not getting much better, this trend will likely continue and create more inventory on the market as we enter the new year.
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More Investment Opportunities

Cash Flow Machine Update

March, 2011

Every once and awhile I will try and update opportunities we are finding in the market.  There are too many properties we find that are good deals to post them all here as blogging is secondary to selling homes and working with investors.  However, here is a sampling of 3 opportunites that are currently available.    I cannot provide addresses because they are not my listings, but if you are interested, please ask me for access to the investors site we run where there is more information.

City Heights – 12.5% Cash Return

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Monday Morning Coffee – A look at February Numbers

Monday Morning Coffee

San Diego Real Estate Sales – February, 2011

Good morning,

I hope you enjoyed the great weather this weekend.  Zach and I took a walk  around the neighborhood and it was nice to see some flowers blooming and hear the birds chirping away.  It was also nice to see that last neighbor taking down his Christmas lights – made me feel better about not putting the dishes away.

A quick look at San Diego home sales in February shows a continuing slow down in sales this year when compared to last year.  However, last year was bolstered by the First Time Home Buyer Tax Credit.  Until June, our numbers are going to be compared to numbers that are artificially high, so don’t put too much emphasis on year over year number.  However, just so you know what they are:  (more…)

Monday Morning Coffee – Early Look at January Numbers

Monday Morning Coffee

January  San Diego Home Sales Look to Dissappoint

Good morning,

I hope you had a nice weekend.  Things were quiet for us this weekend as the weather kept us (and potential buyers) indoors.  I am still seeing softness in the market as I will cover below.  We did close a very good investment 3-plex for a client and will be working with him to get the vacant unit painted and rented, at which point he should be able to earn 8-9% a year on his down payment.  I did spend some more time this weekend looking at other possibilities and crossed 3 off the list, but did find a duplex in Spring Valley with potential in the low $300k range.

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Monday Morning Coffee

Monday Morning Coffee

Busy News Week

Monday Morning Coffee – More Investment Opportunities

Monday Morning Coffee

Cash Flow Investments

Oceanside Investment Property

Found an opportunity in Oceanside.  This is a 4-plex pulling in over $4,000 a month in rent.  Possible to offer $400k (if there is a bidding war, this one will go up).  The return on this is 11% cash-on-cash (25% down) for owners who hire a manager and over 14% if you do it yourself.

The area is a good one for tenants (near Camp Pendleton), but there will be turnover as that line of work does include a lot of job transfers.  It was renovated in 2004 and has been kept up since then.  There is a question on some of the appliances (refrigerators and commerical laundry) conveying, so our numbers allow $10k addtional at close of escrow and still perform quite well.

This one may get a lot of activity as we do not see these in North County that often - I will be bringing this one to the radio on Thursday am, so let me know quickly if you are interested.

A full write up with comps is on our Cash Flow Machine blog, it is password protected, so let me know if you want access.

Monday Morning Coffee – Dec. 19th

Monday Morning Coffee

Christmas Shopping isn’t Done Yet

Good morning,

I hope your shopping is finished (or at least more finished than mine is!)  I guess we can’t complain too much about one week a year of bad weather, but wouldn’t you know it would be the week we all are running in and out of malls – take your vitamin C and Chicken Soup.

We are continuing to make changes to our systems at year end to provide better service next year.  Of course, we wanted to be done December 1, but are now hoping to beat January 1.  One of the biggest changes is in staffing.  My assistant, Tanya, has left to take a job with the Department of the Navy.  It is a great job and they are paying for her to get an MBA – I wish her the best of luck, she was a great asset and this new position offers her great opportunities.  We are very fortunate to have found a replacement for her quickly.  Elidie joined our team on Wednesday and is quickly getting up to speed.  She comes from a strong real estate background and has been an office manager (those of you who know me know that I need someone to manage me).  I am looking forward to continuing our growth path with Elidie on the team. (more…)

San Diego Real Estate Cash Flow Opportunities – Dec 15

Four Properties Qualify as Cash Flow Machines

We have currently identified four properties that meet our criteria as Cash Flow Machines for small investors ($100k).  These are not our listings, but rather opportunities for our investors to profit long term.  Since they are not our listings, we cannot publish their addresses.  We do have a client only site that we can provide access to for clients (must have a buyer-broker agreement) that has photos as well as our write up and financial analysis of each property.  Here is the basic information on each property:

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