Information about San Diego real estate

[Nick Pavlakis]

Hi everyone! New investor here - long time listener first time caller.

I'm currently living in Seattle and I'm considering moving to San Diego. I want to do a house-hack either by buying a multifamily or by buying an SFR with a large lot, building an ADU, moving into the ADU and renting the main house (either traditional or STR).

I'd appreciate it if fellow BP members can provide help with the following:

1) Tips and tricks about SD investing in general, regulations I should know about, possible pitfalls, etc.

2) Neighborhood suggestions. My wife and I are going to be staying in the property. We'd like it to be in a safe neighborhood as close to the center/beaches as it can be (e.g., 15-30 min drive). What are some neighborhoods that fit these criteria and can provide decent cashflow?

3) Recommendations for investor-friendly agents in SD. I'm just browsing at the moment, but many listings on Redfin don't contain complete information, so I'd like to be able to ask those questions.

Thanks a lot in advance for your help!
Nick

[Sherry Chen]

Hi Nick, I'm a real estate agent in San Diego who specializes in ADUs. I'm a San Diego native and I think you and your wife will love it here! 

I agree with Twana, that moving into the ADU and renting out the main home is a great way to cover your mortgage. The most cost-effective way to add an ADU to your property is finding an SFR with a detached garage, preferably against an alleyway to allow private access for the ADU. San Diego's new ADU laws include many benefits for garage conversions making them much easier to do compared to last year, and a typical project will run around $60-$85K all in.

For maximum rentals and property characteristics that are ideal for an ADU, here are a few neighborhoods in City of San Diego I focus on: Normal Heights, South Park, City Heights, North Park, University Heights, and College Area. City of La Mesa is further east, but it's a very ADU-friendly municipality and you can drive to the beach in less than 20 minutes. Depending on your budget, there are many other lower-priced neighborhoods in City of San Diego with larger lots and are less than 30 minutes away from the beach.

With an ADU, there's also no owner occupancy requirement if you build by 2025. This means that you're able to rent out both your main home and ADU and you are grandfathered into this clause -- a great perk for investors. There are many factors to consider when searching for an ADU-friendly property and I'm happy to answer any questions you have that will help with your property search should you decide to go this route. I hope this helps!

Sherry Chen, The ADU Agent

Compass

DRE #02017034