San Diego, CA · Member since 2015 · 26 posts · 4 votes
I'm hoping to put an offer on a San Diego property within the next week or so.
I plan on using a conventional loan, so for now I'm not considering cash only offer requests. I'm pre-approved, and looking for something under $700,000... Hopefully for closer to half that amount.
My goal is cash-flow buy-and-hold, with a primary interest in 2-4 units, ideally in a neighborhood where I can envision some appreciation.
I'm looking for a property that I can upgrade to force some further appreciation.
In posting here, I'm hoping to hear about off-market properties that reflect actual deals, vs. wholesalers sending me MLS listings with their mark up added. ;-)
Investor · San Diego, CA · Member since 2015 · 2 posts · 0 votes
11y
Hi Micheal,
Good luck finding a property that meets your criteria in SD county. Everything is overpriced right now that you are wasting your time. Don't get me wrong, they are some deals out there but you just have to be really picky and have a good network to bring them to you. The going CAP rate is around 4-5% and I have seen properties in the 2-3% range (crazy). I wish you luck on your endeavor, you may find something but it will take patience.
San Diego, CA · Member since 2015 · 26 posts · 4 votes
11y
Agreed Jason. I'm still going to give it a shot for the next week or two before I settle into a longer term scenario where I wouldn't be using a conventional loan.
My question to myself is how much cash flow should I give up in order to be able to use the lower interest rate from a conventional loan. Sounds like a math problem!
Investor · San Diego, CA · Member since 2015 · 2 posts · 0 votes
11y
I just closed on a duplex in calexico that gives me great cashflow at 8% cap. My plan is to hold it and collect the cash flow and sell in 1-2 years if i get my asking price. I am still looking at properties to acquire in san diego, but I'm not looking too hard. If i see something i like, i would investigate further and when it's all said and done the numbers don't work b/c the seller is asking too much. At the moment, i am just saving my money and when prices soften or begin to decline (which i think it will), i plan to acquire 2-3 properties.
I understand this will be a long waiting game and I don't mind the wait. What I learned from my past mistakes is impatience has cost me lots of money. I expect the market to show signs of softness around elections or right after. I think prices will decline around 15-20 percent in the next down turn. The cali market normally has a 10-12yr cycle from peak to trough and the low will be around 2020-2022. Pay close attention to market and use this time as your education gathering and market analysis so when there is blood on you won't be one of the bleeding. Good luck.