OfflineI'm looking for advice on the San Diego, CA market. Can someone who is currently speculating on this area post some insights on what their strategies and returns are?
Are rentals and multi-unit properties the way to go in San Diego right now for real estate investing?
TIA (Thanks in Advance)!
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I very much doubt that multis are the way to go. They haven't made sense in forever unless you have a TON of money to carry them and are really just looking for a tax break till the loan pays off.
SD has a very divergent market right now. You have the areas like North County Coastal that are still resisting price decreases. (Mostly this is due to the desirability of the area as well as the strength and resistance of the sellers ie ZERO foreclosures in LJ in the last year).
Then you have places like Escondido, Oceanside, National City, Chula Vista. These areas are getting CRUSHED and in some places (eg CV) NOTHING is selling except foreclosures. I would be mining these places for bargain properties.
They may not cash flow anyway but if you are getting it at 50-60% of FMV and can afford to carry it for a while (or live it and spruce it up) then I think you will do ok.
I probably wouldn't bother making offers to regulary sellers (ie non-motivated which is basically most of them). Maybe a sandwich lease might make sense but I still think you are better off buying and selling on a LO.