House Hacking in San Diego?

Question

Hello everybody,Could someone tell me wich are good neighborhoods in San Diego, CA? Are there currently opportunities for House Hacking? do you think that is a good time to buy in San Diego?Thanks :)

Dan H. · Answer

Definition of good varies depending on what you are looking for:

- Liberal: ocean Beach and hillcrest

- Hip: Hillcrest, Pacific Beach, North Park, Bankers Hill, down town

- Good/great Schools: Poway, Carmel Valley, North County coastal

- party: Mission beach, downtown, Pacific Beach.

- Upper class beach: Coronado, Ja Jolla, Del Mar, Encinitas, carlsbad, leucadia

- Upper class inland: Rancho Santa Fe, Fairbanks Ranch, parts of Poway, Parts of RB.

- Most likely to outperform market: West Chula Vista (huge development project already funded), Imperial Beach (cheapest beach properties in US for hundreds of miles)

- Conservative: Much of the east county.

Rural: Much of East county, Ramona, parts of Poway.

My two favorite areas are Poway and encinitas, but I expect virtually everyone to have their own favorite areas.

As for it being a good place to house hack.  For a long term RE investor, San Diego has always done awesome.  Does this imply it meets everyone's (or even most people's) view of good place to invest?  No.  It has a high cost of entry.  Virtually all RE purchases have negative cash flow at purchase.  The regulations are tenant friendly.  San Diego had the most severe Covid eviction moratorium in the country.  You were only allowed to evict for safety reasons.  The tenant could have stopped paying, moved in a dozen of their friends into the unit each with their own pet, started growing pot on the property and you could not have evicted them (by law passed by the board of supervisors, so county wide).  If you hold long term, you historically would have made a lot from appreciation, your rent to purchase ratio would be outstanding (A result of crazy high rent increases.  Core Logic shows the average SFH rent increased $600/month last year), and you likely had good/great tenants (a result of the housing shortage and how tenants understand that as a poor tenant they will have difficult time finding housing in San Diego).

My answer is it is a good/great market to house hack if you plan on holding 10 years or longer and an OK place to house hack if you plan to hold at least 5 years.  I would avoid purchasing at this time if you expect your hold to be less than 5 years.  It is very different market than the high initial cash flow midwest markets.

Good luck

Mauricio Salom · Answer

I have house hacked on the west side of Chula Vista and love it. I have found that in that area you can find more SFR's that have already been set up to house hack and ready to be rented on day 1 or take very little work to divide also granny flats / ADUS are also very common in Chula Vista. I am also eager to see what the J st Marina development project does for property values. There are always opportunities for house hacking. With interest rates up buyers have slowed lowering home prices and with more people asking is now a good time to buy it lowers your competition and right now you can avoid the bidding wars and likely even get the seller to pay for closing costs or buy down your interest rate.

Dan H. · Answer

>I would like to know more about the new developments; where can I find this information?

The development I referred to can be found by doing an Internet search of Chula Vista Bayfront Redevelopment. It is the same development that @Mauricio Salom referred to as J St Marina development.

West Chula Vista  have as likely to out perform market because 1) the already funded coastal development 2) how many cities have cheaper properties coastal than inland?  Chula visa is unique.  The coastal properties are old and the area has never gentrified.  These properties are ripe for gentrification and due to the large development effort is very likely to occur.

By the way none of my RE investments are as far south as west Chula Vista.  I believe the market will out perform the San Diego market, but it is a bit far from my units (none of which is significantly south of highway 8).

Good luck

Matt May · Answer

@Nadia Justo,

There are absolutely opportunities to house hack in San Diego. We help people house hack every year in SD county. I am in the process of helping 2 people do it right now. Do you live in San Diego? And what makes you interested in house hacking?

It is always a good TIME to buy in general. It really depends on the specific deal and your personal situation.

Lawrence Potts · Answer

@Nadia Justo,

I'd reach out to local investors and see where they are investing!

Good indication of "good" neighborhoods should be safe, close to good schools, secure jobs nearby, etc. Just imagine what you would want if you wanted to live somewhere and go off of those necessities.

House hacking is always a good opportunity. It depends also on your situation. It can be an awesome time to buy or a terrible time to buy, but if you can't buy, you can't buy.

Hope that answers some of your questions!

Kenneth Donaghy · Answer

@Nadia Justo I've helped many househackers in San Diego, some of them buying multiple househack properties with me. I also use to live in NorCal. What makes SD super cool is each neighborhood has a different vibe. I usually match my clients vibe to their budget and neighbor. So yes there are great opportunities to househack SD, a few different strategies I suggest based on your budget. And to answer your last question, yes i do think its good time to buy in SD especial if you are househacking.

Nicholas Coulter · Answer

There are! I am currently hacking in Sd and have done the same for some clients! We should connect and I can help you narrow down your search!

Eric Yu · Answer

Hi! I don't personally operate out of San Diego, but my good friend/colleague @Nicholas Coulter can provide a ton of value for the San Diego market. He's currently house hacking there as well :)

Twana Rasoul · Answer

Hi @Nadia Justo There's lots of good areas to house hack in San Diego but your budget will determine the type of property and neighborhood you will be able to purchase in. I house hack myself and love it in the BayHo area...You can house hack in coastal area a block from the beach or way out in land if you want a larger lot.

If you are buying for long term buy/hold then its always a good time to buy...I just purchased a 4plex last month myself...Usually you want to be able to hold for 5 to 7+ years....those who come to San Diego and only plan to stay 2-3 years and then sell are usually better off renting.

Nadia Justo · Answer

Hey,thanks everyone for your responses.  I am wanting to start my path as an investor and it helps me to have different points of view. @Matt May I currently live in North California.  I decided to use the House Hacking strategy to start with less money down, and I find the San Diego area to be a place worth looking at.  Seeing if the current instability could favor the buyer, since I feel that when everything is more solid, entering the San Diego market is much more difficult (I was also guided by my heart and my desire to live there 😂) @Dan Heuschele Thank you for such valuable information.  My plan is to buy and hold forever or until needed.  I would like to know more about the new developments; where can I find this information?

House Hacking in San Diego?

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