So stuck on this one.... San Diego 2 Family worth it for under 1mil?

[Katelynn Quinn]

Hi All!

I am really excited to begin my journey owning real-estate in San Diego and could use your help. There is a 2 level multifamily in National City (2x 2br and 2bath) that I am super interested in using my VA Loan for. It is listed for $875, will not cashflow, needs around $15k in work to be renter friendly and $30k in upgrades over the next year and a half. The future upgrades will be to deal with the new EEE reg coming down that will force me to redo a set of stairs and two landing that are both outside.

Does anyone know the area to help me truly dive into the appreciation for the property to see if this is worth it?  If it helps, it is 15 mins from where the new Chula Vista Bayfront project will be ('they' say it will raise home values). Ultimately, I plan to hold the property and know that initially the appreciation will not be a big deal. Im stuck on this property because a multi-family that actually good and is under $1 mil is few and far between BUT my long term goal is to buy more....

BP Community... please help!

[Katelynn Quinn]

Quote from @Jonathan Greene:

It definitely has potential, but I agree with what @Dan H. said. If you want to buy real estate and wait, this could crush, especially with the new ADU laws in effect in San Diego which could help if you have any extra room on the lot at all. Appreciation is locked in for a two-family there, but it will be more about how much it will take to get it to what you want and what you might be missing along the way.

Thank you Johnathan! The lot is large enough to add 1-2 ADU's in the near future and would dramatically change the ROI after a year or two. Maintaining the perspective that it is an investment property is going to be the key when it comes to upgrades.

Hope you have a fantastic 2024!

Katie