All Forum Posts by: Austin Wolff

Quote from @Twana Rasoul:

@V.G Jason 

A common misconception in San Diego is that out-of-state investing is more accessible. But if you're renting here and spend $40K to buy a $200K property out-of-state with 20–25% down, you're missing a huge opportunity.

That same $40K could go toward a $750K–$1M duplex locally using an FHA 3.5% or 5% down conventional owner-occupied loan. You live in one unit, rent the other, and start building wealth at home.

In most cases, house hacking in San Diego will outperform buying a cheap rental elsewhere. So yeah, if someone is skipping that to chase OOS for their first property while paying rent here is a silly goose 🐣

You're missing the point. The DTI, the property reserves, the actual mortgage payment create a significantly higher sunk cost profile that the average BPer cannot tolerate.

I've already agreed with you that dollar per dollar then SD is excellent. You're looking past or not reading my actual points and keep repeating you're same stuff.

@V.G Jason @Henry Lazerow Thanks for chiming in..

Without going too deep into the weeds, I want to offer a perspective that I think gets overlooked here on BP, especially by those in high-cost areas like Southern California.

A lot of newer investors in San Diego (and similar coastal markets) get told they have to invest out of state in cheaper markets and only focus on cash flow. That advice might make sense for some, but it often ignores the real opportunity local buyers have right here, especially with owner-occupied financing.

Let’s say someone spends $30K–$40K to buy a $150K–$200K property out of state, putting down 20–25%. Meanwhile, they're still renting in San Diego.

But that same $30K–$40K could be used as a 3.5%–5% down payment on a $750K–$1M duplex right here in San Diego using an FHA or other owner-occupied loan. By house hacking, living in one unit and renting out the other, they not only reduce their cost of living, but also build wealth through appreciation, principal paydown, and better loan terms.

No matter how you slice it, in this scenario the San Diego duplex buyer ends up far wealthier over time than the person who puts the same capital into an out-of-state rental while paying high rent locally.

One common misconception I see, among both new  investors, is the belief that higher cap rate markets are automatically “better.” What’s often missed is that high cap rate markets tend to have much lower historical appreciation, and in many cases, they experience flat or even negative long-term growth. When appreciation doesn’t keep up with inflation, you’re actually losing value over time, even if the cash flow looks solid on paper.

High cap rates often exist because those markets have to offer something to offset the higher risk of minimal appreciation, or even long-term stagnation.

This isn’t to say that out-of-state investing doesn’t work. It can work and some on here do really well with it. But if you live in a high-cost market, you owe it to yourself to run the numbers locally first, especially with house hacking as your entry point.

If you're living in Southern California—especially in San Diego—I highly recommend considering local real estate investing before jumping into cheaper out-of-state markets.

Why? Because while prices here are higher, the total return on investment, including appreciation and rent growth, is often significantly stronger over time. Simply put, more long-term wealth is built in high-demand, supply-constrained markets like San Diego than in many lower-cost areas.

For those just getting started, especially first-time buyers, the key is to leverage low money down loan options—whether it's 3.5% down with FHA, 5% down conventional, or even 0% down with a VA loan for military buyers. These programs make it surprisingly accessible to purchase a condo, single-family home, or ideally a 2–4 unit multifamily property to live in and start house hacking.

The biggest mistake I see? Buying a big single-family home as the first purchase. That large mortgage can make it much harder to save for a 20–25% down payment on a future investment property. But when you start with a house hack, you’re reducing your housing costs and building equity—positioning yourself for that "dream home" later on, but with far more flexibility and wealth.

And yes, while San Diego is competitive, BRRRR deals are still possible. I personally purchased two BRRRR properties here just last year. They're harder to find, but if you know what to look for and move quickly, they're out there—and they can still generate great returns right here in SoCal.

That’s exactly what I’ve done over the last decade. I started by house hacking with low-down-payment financing, slowly built up equity, and reinvested. Now, I’m finally beginning the search for that long-term “forever home.” It’s been a strategic, step-by-step journey—and I’m grateful to have a spouse who’s aligned with the long-term vision, because that support has made all the difference.

Truth is, you don’t need a ton of money to start investing in San Diego—just the willingness to make smart, sometimes unconventional choices. It’s about resisting societal pressure to "keep up" with others and focusing instead on what will actually build freedom and financial stability.

If you’re in SoCal and wondering how to get started the right way—or want to talk house hacking or BRRRR strategies—drop a comment or reach out via direct message. Happy to share what's worked for me and help others get started locally.

I don't think you're necessarily 'wrong'.....but I don't think you can/should compare 2 cities that are so different in so many ways. Just the weather factor in LA will sway those stats hugely.....

However, I don't agree completely with the planner either. I beleive in some zoning....but, when applied strictly, it also creates a boring bland community or city. I've seen cities fight the 'mixed use' concept (Residential living above, commercial below), when in the right place it can make a city come alive....

IME, city planners are blah and boring with no imagination and a dislike of risk....