San Diego multifamily market

8 Replies

Hey @Judy Ortley

Although cash flow can often be tight, San Diego absolutely still offers fantastic opportunities for building wealth. 

That is not to say positive cash flow isn't achievable, but there are a number of other benefits this market provides which makes it fairly unique and an intriguing place to invest. 

Feel free to reach out if you'd like to discuss the opportunities here!

Hi @Judy Ortley

There are definitely some opportunites still available to cash flow in the outer areas of San Diego, such as Oceanside, Vista, Escondido, Chula Vista, and Santee. Also, the multifamily properties in up and coming areas like Normal Heights, Kensington, and North Park also offer some opportunity. 

The key ingredient is making sure to buy the properties right so that if there is a downturn in the market, you're still able to make money.

Please let me know if you'd like to know about specific opportunities. My expertise is North County area, but I just did just sell a multifamily in La Mesa that is a perfect house hacking property for the buyers and there are more properties in that area that would work.

Hello to all. Let me introduce myself. I'm Dwyanne, a Newbie in REI, along with my wife Sylvia. We learned from a "Guru", but later found out we could have gotten more, and way more cheaper from free education. We tried the steps from the Guru, but quickly found out there were a lot of details that were not mentioned. So now, I'm here..moving on.

I'm in San Diego near Paradise Valley/Skyline area, where we bought our home about 4 years ago. We are open to all of San Diego, at this point. 

We have narrowed down a niche in REI to buy and hold for single-family, multi-family, small apartments for passive income - we both have daytime jobs. I've read "No Money Book", a few articles on rental properties on BP, and currently reading "The Ultimate Beginners Guide...". We currently have a LLC out of Nevada, and I understand the State of California will send us a letter to register with them soon after our first successful transaction. For now we are reading, searching on Craiglist, Loopnet, Property Pro software for foreclosures, and getting used to calculations for apartment complexes.

Any assistance, connections, etc., with this niche would greatly be appreciated.

I agree it is possible to cash flow in San Diego but the cap expense is higher here than most other places.  So a lot of properties that look like they cash flow do not.   

However if you have the time and skills to do a lot of the rehab yourself you can get instant equity gain and the resulting unit is more likely to cash flow.  

I suggest you look at a cap expense itemized sheet and their numbers then realize their costs are way lower than in San Diego.  For smaller units I use $300 per unit per month.  I derived this number by starting with a cap expense sheet and replacing the cost on the sheet with my experienced cost in San Diego.  I also modified a couple of the life spans for what I am actually encountering.  

By the way my area of expertise is Escondido.  I claim to know price point of multi units in Escondido better than any reactor I have yet to encounter.  Arrogant?   I or my wife have looked at the exterior of virtually every reasonably priced multiplex on open market for last 5 years.  We have placed many offers and tracked what each sold for.  I can virtually always predict which one will be sold within a month and which will linger.  

If you choose to invest in Escondido I am willing to tell you what I think of the price point of a property if you desire a sanity check.