When buying a 2nd property.

[Christian Fernandez]

Good Morning everyone, I'm currently enlisted in the military and station in San Diego. I bought my house at 3.25% interest rate for roughly 550k and been living in it for roughly over a year. I want to buy another property but I want to be prepared from every angle. What are some things I should do, research, or prepare for?

[Ben Capone]

Hey Christian, I am in a similar situation hunting down my third property in San Diego currently. Some obvious right off the bats to keep in mind to help you start your search: 

- Down payment - if you are planning on purchasing your second property as an investment then prepare for a larger down payment (20-25%) then if you were to move into that property and finance as your primary. 

- Affordability - My current two properties are locked in at low 3% percent interests rates as well and current rates are double that so keep in mind affordability is no longer the same as the past couple years. With that being said, there seems to be alot of talk around 2/1 rate buy downs and some other strategies. Those may be good to research with your lender. 

- Competition - From experience over the past couple weeks, all the news about the national housing market crashing doesn't seem to be the case here in SD. Demand is still at an all time low and I have lost the past three offers I have submitted to people coming in well above asking price and foregoing contingencies. One going 150k over asking..

I know those are pretty obvious but hopefully it helps. Good luck out there!