I predicted a 20 to 30 percent correction in prices this year, and I was dead wrong.It appears that investors are continuing to come in for the long haul, with the knowledge that positive cash flow isn't realistic in the early years of ownership.

If the target client is a healthcare worker who makes 100K+ per year and is staying a few months they will want a certain type of area, whereas a person only staying a weekend wants to be near their "event" and is more forgiving on other things.

I am familiar with the step-up rate, and I honestly think she will be selling for very little if any more than what it's currently worth when she took possession of it this year. 

It's a 900sq ft 2/2 unit with 1 parking spot that is approximately 40 yrs. old, ina  100 unit building.

I have lived in San Diego 10+ years.

After a year, do it again.

Savings of $30,000 a year.

The house is old and needs some work. 

I've had my ear against the door of REI for a few years now and I'm finally ready (within the next 12 months or so) to dive in.

if you think there is more equity there you could have an appraisal done… but some lenders will not re-evaluate a recent purchase for a set period of time… they will just stick with the old purchase price as its value (varies by lender) unless you can show significant improvements you did to justify a higher price.