Is San Diego a good area to invest in?

2 Replies

Hey BPers!

I was wondering does anyone think the market in San Diego is a good area to invest in? More specifically the north park, south park, hillcrest, and downtown area. I know the real estate here has boomed recently. So I'm wondering does anyone think there is any meat left on the bone? Another question I have is. Has anyone successfully done out of state deals? I've heard wholesaling can be done out of state, but what about rehabs or anything else like that. I was just wondering because stuff here is incredibly hard to get without 400k+ (at least around where I live).

Thanks Guys!

Nick

What type of investing do you want to do?  San Diego does not cash flow for rentals right now.  I own rentals in SD but I bought between 2009-2011 when the market was way down.   There was a very brief window of opportunity from late 2008 to early 2012 when certain properties actually cash flowed in Coastal CA due to the over-correction in RE prices. I was shocked when it happened as many thought you would never be able to get a 1% rent to price ratio on the Coast of Cali ever again, but it happened, briefly.  But then prices shot back up like a rocket in 2012 and 2013.

But I'm sure you can do fix and flips in SD right now like you can do in any market at any time.  It's just a lot of hard work, learning, and a lot of competition.

Account Closed 

As Ron mentioned there was a time where you could get some that would cash flow, Istill have one, but I found it in 11 and used 20% down.

For appreciation, sure you can invest in the SD market, as well as for fix/flip, and there is alot of competition.  There are also alot of houses. 

I think you will have trouble with the 1%, but you have a great rental market, great area, great schools, great business and low ability to purchase, so people tend to rent.

South Park has gone through some of the gentrification/improvement already, and it has spread into Northpark, though there may still be deals. Downtown not really my area.

Hillcrest and bankershill seem higher priced, well maintained, older homes. These areas may have the ability to find estate probabte, but again, competition in the area.

So depending on your goals, yes and no.

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