Is this a good deal? Or Not? Potential investment property.

[Thomas Lee Malpass]

Hi guys so I’m thinking about buying this property to live in and have as an investment in the future. It’s a 4 bedroom 3 bath 2600 sqft House. The seller is asking 600-620k for it. Which I think is a good deal for San Diego and with the same specs on houses in the area. It’s been on the market for 65 days and his original asking price was 689k do you think this is a good deal or no,

[Dan H.]

Originally posted by @Thomas Lee Malpass:

Yes so my realtor did as much comps as he could and came to a conclusion it was in the price range of 595$ to 615$. And I would live in this property for at least a year and would like it to be a rental property.

SFR purchased at retail in San Diego have negative cash flow as a rental. The realtor provided a retail price range that aligns with the asking price so it is not appreciably below retail purchase. So I would think this is only an acceptable investment property if you either have a value add (you did not indicate a value add), are very confident of market appreciation (I am not at this point), or are vary confident of rent appreciation.

I would not purchase it as a potential rental.  I think you could do better.

Good luck