Build Your Long-Term Sustainable Wealth with Real Estate in San Diego

by John Selby, Team Leader of The Selby Team

Build Your Long-Term Sustainable Wealth with Real Estate in San Diego. Person overlooking a glowing city.

Long term sustainable wealth is a topic that everyone should begin thoughts on at as early an age as possible.  Once you are settled into an established job for a minimum of 2 years, you can potentially qualify to purchase a home to live in instead of renting.  Also, if you have just graduated from college, you could potentially qualify for the lending to purchase a home. 

Many people have no idea that this is something they are capable of doing and can start the thought process and the small steps sooner than they think. 

What you are paying in rent could actually be enough to buy if you figure in the benefits of the tax write offs from owning. As a renter you are helping your landlord build their long-term wealth without any benefits to yourself other than putting a roof over your head. If you are the owner of the home, you are basically using someone else’s money to be the sole beneficiary of the long-term appreciation and as you make the payments instead of rent, you are essentially socking money away for your future.  

Starting with a small purchase is better than renting as you are still benefiting in the long term since any purchase can be the stepping stone to an investment property.  As an owner who will be occupying the property, you can qualify with as little as 3.5% of the purchase price as your down payment.

Shift Your Mindset

The mindset, however, of many first-time buyers is that you will be buying your forever home so it has to be perfect for you.  It’s tough to get past that idea as it can be the most expensive purchase one will ever make in their lifetime. 

If you can temporarily shift that mindset it could put you into a position where you can use the first few property purchases as a stepping stone to long term sustainable wealth and financial freedom. Personally, that shift has enabled me to acquire 12 rental properties in San Diego in just 10 years.

Walk the Talk

Here are some examples of what I have managed to do, personally, in the last few years to build long-term sustainable wealth with real estate in San Diego.

First, we purchased our first home in 2015 knowing we would not live in it forever. 

At that time we were looking for something that made sense for us to live in and could be turned into an asset down the road. It was a 3 bedroom/2 bath home on a HUGE lot with a detached, 2 car garage and lots of space to build extra units on later if/when we were able to financially. At the time we didn’t know exactly what our end plan would be but we bought it due to all the potentials it offered. 

Fast forward 9 years, the universe was nice to us and we were able to expand to convert the garage to a studio and also add 2 more units.  We added a 3 bedroom and 1 bedroom duplex; thus leaving us with a total of 4 units on a property that was originally only 1. We now have over $1mil in equity in that property and a consistent monthly income of $13,500.  

Our next purchase 4 years later was a duplex in an area that we really loved. 

In order to accomplish this we went from living in a 3 bedroom home to a 2 bedroom.  It was a downgrade for us but we looked at it as a potentially great investment in the long run.  As we lived there, we slowly made improvements as we were able to afford…focusing on improvements that would attract tenants in the long run.  We have moved from there now and the property cash flows at a positive of $1,800 a month.  

So what’s my point in telling you these 2 stories? 

It is to show that, personally, I have used the mindset and process needed to make this a reality.  There is nothing wrong with wanting your first home to be your forever home.  It’s still better than renting and paying someone else’s mortgage.  I am telling these stories to inspire the person who feels that they will never be able to own a home or will be tied to their 9-5 job until they retire.  This only scratches the surface of the possibilities when you start thinking about a home purchase in a different light. 

Long-Term Sustainable Wealth Can Start Small

It’s also important to point out that you don’t need a HUGE pocket book in order to make this happen.  Our first purchase we did with a $25,000 down payment and less than $30,000 in renovations.  The 2nd purchase was with $55,000 for the down payment and about 3 years later we were able to invest $25,000 to renovate it.  It doesn’t cash flow a HUGE amount yet but that is only going to go up as the years go by.  

Over the years I have helped a number of clients shift their mindset and start acquiring assets that now have millions of dollars in equity as well as thousands in monthly cash flow.  They are all on a fast track to retirement and are able to live easier in their present life.

Contact John Selby to learn more!

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