All Forum Posts by: Alex U.

 WFH macro trend...disrupts the "People following jobs theory".  This would potentially make a more even distribution of housing.  Exceptional places like southern California would obviously have their own draw, demad would always be strong barring a catastrophic event.

 It does feel that without the likes of  Kiyosaki and Turners of the world, Real estate prices wouldn't be where they are.  Or at least you may have more homeowners than renters.  I think investors tend to skew the market, in either direction.  A hot market gets additional buyers.

RE is like a cruise ship, builders stopped building for years after the 2008 financial crisis due to oversupply caused by loose lending.  We have a historic number of Gen Y-forming families.  It is almost the perfect storm.  On top of that, the island of San Diego has exhausted most of the buildable land within 10 miles of the coast, in the last RE boom ( Carmel Valley, Otay, etc).  Unless the military moves out of Miramar ( as they once promised), finding large swaths of buildable land is quite challenging.

The softening in rents was over the past 2-3 months, once rates rose above 7.  YoY still remains positive.

IF a property has been purchased a couple of years ago, and a regular depreciation was taken for 1 yeaer, ( ie. 27.5 year depreciation), in year 2, can you do a cost segragation, and take the bonus depreciation in the 2nd year?

2023 was supposed to be a record year for new rentals to come online in San Diego.  Does anyone know where to see this data graphed out historically.  Rents do seem to be softening, for reasons other than seasonality.

A few years back, the advent of driverless car technology appeared poised to revolutionize the real estate landscape. It held the promise of restoring precious time to individuals, thereby diminishing the significance of the cost disparity between coastal and inland properties. I am still waiting on FSD, to stop trying to kill me while driving.

In my humble opinion, two significant developments have irrevocably reshaped the real estate industry:

1. The widespread adoption of remote work has fundamentally altered the valuation of land. If one can operate within the same time zone, why not choose to reside in a amazing location like San Diego over the Bay Area? It offers a higher quality of life, reduced traffic congestion, and more affordable housing, making it a compelling choice.
2. The approximately 18-month period during which 30-year fixed mortgage rates remained below 3.5% will leave a lasting impact on the housing market for many years, possibly even decades. The situation might change if interest rates once again approach these historic lows or if government policies facilitate assumable loans. While Subto is conceptually similar, it remains a niche option, especially when sellers prefer immediate cash transactions.

With 30 yr fixed rates close to the  8's,  are we finally going to see a pullback in demand in San diego?  That coupled with seasonality.

Step 1: Take a deep breath

Step 2: Get an attorney...no one likes to pay legal fees, but consider this the cost of education.  And once you have this knowledge on how to deal with problem tenants, it is invaluable.

Step 3: make sure all communication is written. Make sure you don't accept any partial payments, or the tenant auto deposits money into your bank account.  Make sure you "Nail notices to the door, and mail it also"  Use the mail delivery receipt for proof of notices.  Take photos of the notices you have nailed to the door.  

San Diego is a great market long term, don't be dissuaded by a few bad apples. This is the price we all pay, for being in this business. good luck.

Are you building R2 or R3?  Appears you could actually do 16 units in RM1-1, with a .75 FAR, even without the bonus, any reason you are only doing 14?

Construction costs ae very local. It might help to share the city of the project.