All Forum Posts by: Ali K.

@Jordan Graham

Thanks for the additional information! My idea of a bigger lot is for more opportunities down the road (ADU or future development).

@Jordan Graham

Thank you for sharing the information! I am excited about this window of opportunity but I’m not sure how long it’ll last. One could see this continuing through the next year or as long as rates are higher, or who knows perhaps the market will catch up in the next spring-summer season and the opportunity will be gone.

I’ve been looking at North Park as an option. Although we like a more urban vibe to live in, I see two issues with the area 1) safety (it’s relative but please correct me if I’m wrong) and 2) smaller lots. I see some properties with 0.5-4 acres in Poway that can be bought with 1-2M, the same price as a smaller house with 5000 sqf lot in North Park. Am I looking at it the right way, that the land in the suburbs would provide opportunities down the road?

@Matt May

Thank you for your reply and the suggestions! I do think buying a duplex would be great but a few considerations: 1) multi family properties in San Diego are very expensive, 2) they need more money down that require me to sell more properties in Minneapolis, 3) their monthly mortgage payment is higher, perhaps beyond affordability, and 4) rent from the second unit May not make up for the higher PITI. I'm not opposed to it though and I would welcome more info on where in SD there are more MF properties that are worth considering.

I like your idea about selling my primary in Minneapolis. I was thinking of having it as a rental but maybe I should reconsider it for 1) its cash flow would be positive but not significant and 2) I could take advantage of capital gain tax benefits before turning it into a rental. Do you have more thought to share on this?

@Mark Frattini

Forgot to say that I would love to have your list of neighborhoods if you could send it to me! Thanks again!

@Mark Frattini

Thank you for your reply and great information! I’d agree with you on most of the points if not all. Regarding the price to rent ratio in San Diego, my point was that I could rent with less monthly payments than mortgage, and invest my money in Minneapolis. Having rentals in SD is not my priority at this time.

I do think neighborhoods around balboa park are good options in terms of city vibes and próximo to downtown. I don’t know about investment potential there though. Any thoughts?

@Twana Rasoul

Thank you for your reply and the great points about equity and tax implications. I bought my rentals in the last 2 years or so and their equity is descent but not great. I was thinking if buying in San Diego is a good option would it be better to do it now by selling my rentals or wait for a couple more years and rent until then.

@Dan Heuschele

Thank you for your reply and excellent information! One point I’d like to clarify is that I’m not aiming for cash flow in a San Diego property and the goal is to buy it for primary residence for the time being. The point of the question is whether I’d be better off buying my primary in SD and work/hope for appreciation or rent there and keep the cash flowing investments in Minneapolis.

The neighborhood information is wonderful. I do like your suggestions on Encinitas and Poway that were not in my radar so far.

Hello BP,

My family is moving to San Diego temporarily (say one year) with a prospect for us to permanently reside in Southern California. I have a descent cash-flowing rental portfolio in Minneapolis that I self manage, along with my primary and a full time but flexible job that allows me to travel back and forth. We need a place to live in San Diego and my question is:

Should I sell (one or two) rental property in Minneapolis and use the equity to buy a primary in San Diego or should I just rent in San Diego? Some +/- arguments:

+ diversification over cash flowing and appreciating assets

+ building sweat equity in my next primary in San Diego

+ tax advantages on a larger primary

+ taking advantage of the cool market, that’s selling low and buying low (please comment on this)

+ having fewer properties to manage (yeah managing duplexes is not my favorite)

- high interest rates

- high price to rent ratio in San Diego

- giving up cash flowing assets

- unnecessary transactions costs

Other arguments are welcome.

Neighborhood suggestions are welcome for descent but not super expensive houses (say A- quality) with good access to downtown.

Thanks for your comments!

@Jared Luhman

I would connect with @Brendan F. Nagle who is an investor in southern Minnesota rural areas. He intimately knows the market there.

@Hartley Schwartz

Where are you in Florida? I have two upcoming trips to Florida in March.