San Diego Real Estate Market

[Edward Mac]

Hi 

I am just starting my journey into investing in Multi-Family housing and wanted to get everyone take on the San Diego housing market. I am a Grant Cardone 10X fan and have read 4 of his books and have completed all of his online courses. In addition to this training, I also have a Masters Degree in Finance as well as several professional designations.

With all that said, Grant Cardone is a firm believer that your first purchase has to be close to where you live. I love where I live (Pacific Beach/La Jolla) however it's not the cheapest to get started and most people I talk to say the market is at is peak. I know in and out every Grant Cardone response to this.....however I still wanted to throw the question out there and get other opinions.

Thank Your For Your Help!

Eddie

[Dan H.]

it is hard to say if San Diego RE as a whole is at a peak but 2018 had minimal San Diego RE appreciation (about the saqme as inflation rate) and so far 2019 has been similar. Prices are high everywhere in San Diego but beach communities are real high due to the Short Term Rental (STR) potential. The issue with STR potential is that there are anti-STR factions at both the city and state level. I suspect the state level is the bigger concern.

Our Mission Beach duplex Zillow value fell close to $200K since its height just prior to San Diego passing its anti-STR regulations (which since has been repealed).

Purchasing in PB/La Jolla is a large risk because if STR regulations are imposed the value will come down significantly (I suspect an additional ~20% (on top of the already lost value that may approach 15%)).

Note most proposed STR regulations exclude owner occupied RE. This implies that a RE with an ADU where you live in one of the units has less risk of having income stream impacted from STR regulations.

Good luck