Why I Encourage San Diego Locals to Invest Here First (Even if It’s More Expensive)

[Twana Rasoul]

If you're living in Southern California—especially in San Diego—I highly recommend considering local real estate investing before jumping into cheaper out-of-state markets.

Why? Because while prices here are higher, the total return on investment, including appreciation and rent growth, is often significantly stronger over time. Simply put, more long-term wealth is built in high-demand, supply-constrained markets like San Diego than in many lower-cost areas.

For those just getting started, especially first-time buyers, the key is to leverage low money down loan options—whether it's 3.5% down with FHA, 5% down conventional, or even 0% down with a VA loan for military buyers. These programs make it surprisingly accessible to purchase a condo, single-family home, or ideally a 2–4 unit multifamily property to live in and start house hacking.

The biggest mistake I see? Buying a big single-family home as the first purchase. That large mortgage can make it much harder to save for a 20–25% down payment on a future investment property. But when you start with a house hack, you’re reducing your housing costs and building equity—positioning yourself for that "dream home" later on, but with far more flexibility and wealth.

And yes, while San Diego is competitive, BRRRR deals are still possible. I personally purchased two BRRRR properties here just last year. They're harder to find, but if you know what to look for and move quickly, they're out there—and they can still generate great returns right here in SoCal.

That’s exactly what I’ve done over the last decade. I started by house hacking with low-down-payment financing, slowly built up equity, and reinvested. Now, I’m finally beginning the search for that long-term “forever home.” It’s been a strategic, step-by-step journey—and I’m grateful to have a spouse who’s aligned with the long-term vision, because that support has made all the difference.

Truth is, you don’t need a ton of money to start investing in San Diego—just the willingness to make smart, sometimes unconventional choices. It’s about resisting societal pressure to "keep up" with others and focusing instead on what will actually build freedom and financial stability.

If you’re in SoCal and wondering how to get started the right way—or want to talk house hacking or BRRRR strategies—drop a comment or reach out via direct message. Happy to share what's worked for me and help others get started locally.

[Becca F.]

I would upvote this 20 times. I have talked to so many California investors (mostly in the Bay Area but a few in LA) that are paying high rent in CA but buying inexpensive properties in the Midwest and South. There are looking at numbers an OOS agent or turnkey company gave them on a spreadsheet  "close to 1% cash flow" - always verify and look at who's trying to benefit from selling you something. 

As we've seen on the forums mostly. CA have lost so much money from buying cheap properties in far away locations. Get ready to spend some money on tenant issues, repairs, vandalism, getting taken advantage of people (dishonest contractors and property managers) while you're 2000 miles away. 

I'm -$300 to -$500 on month (Class C home in Indianapolis) most months for 2 years now, on what was supposed to cash flow on paper and let's not forget about the stolen AC unit and attempted break in. I'm unsure of how long to keep this home and have to sort of predict how much it will appreciate in the future. Just talked to another CA investor whose PM won't show her the invoices for the repairs on her rental in the Midwest. 

Quality over quantity. I'd take 4 solid appreciating properties in CA in nice to okay areas over 20 cheap properties  (all the capital expenses, roofs, HVACs to replace) in a far away state.