San DIego Investments

[Alissa S.]

I am interested in transitioning into the so cal market. I wanted to network with other investors about the market in that area! Any pointers, locations to avoid, what strategies are working in that market etc... I am from the Midwest and we are an entirely different market then what is out there.

Talk to me!!! :)

[Michael Swan]

Hi @Alissa K.

Just my opinion. I have sold all my pricey San Diego RE, except personal residence. I had 10 rental condos here in the San Diego area and purchased at very low prices comparatively to now values. I purchased them in 2011-2012. The people that have purchased these condos that I sold for double the price I purchased them for bought FHA 3.5 % down, with credit scores in the low 600's and with not much money in the bank. I would not have purchased these condos for this price in 2011-2012, due to not being able to cash flow at these current prices with 25% down like I purchased them originally.

Now they will cash flow if you put 50% down.  If that is your plan, then that would be good leveraged debt and add more safety in case we do see this rerun occur again and prices go down 25-50% again.  I have lived here in San Diego since 1978 and don't believe my little 3br/1ba 1040 sf house  in Mira Mesa in the San Diego area will continue to rise and go to $1,000,000.00 someday.  Right now it is at the all time peaks currently about $520,000.00.  The only way this could happen would be many more high paying jobs, vastly increasing pay for employees etc...  The other way it could happen would be to repeal Dodd Frank and ease the lending standards further.  That would be a recipe for disaster.

Swanny