Hi Everyone - I'm looking to learn more and ask questions.

Member since 2025 · 1 post · 2 votes

My name is Sarah Fisher and I'm interested in buying land in the San Diego area. I'm looking to learn more about real estate in this local market and understand all the details and options involved. Mostly I'm just looking to learn things from people who know them and ask questions for right now.

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Eric Gerakos
Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
1y
Welcome, Sarah.
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Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
1y
Quote from @Sarah Fisher:

My name is Sarah Fisher and I'm interested in buying land in the San Diego area. I'm looking to learn more about real estate in this local market and understand all the details and options involved. Mostly I'm just looking to learn things from people who know them and ask questions for right now.
San Diego has been my market and I have historically been very optimistic about San Diego RE investing.

However since q2 2022 I believe buy and hold for is more challenging. This is not only true for San Diego, but nation wide.

The current rates and property price compared to rents means that a high LTV purchase will have initial negative cash flow and likely large negative cash flow. Rent control on MF limits rent increases. It could take many years to get positive cash flow.

i do believe with patience San Diego RE is likely to produce a good return. I am not that patient. So I concentrate on value adds to generate near term returns.

i believe in 10 years after purchase you will likely be glad you purchased the

my son is 22 years old. He is trying to find a path in San Diego RE. He made an offer on a flip last week but the seller is in denial so I suspect it will not work. It is challenging for him to obtain a good return like everyone else.

good luck
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Drago Stanimirovic
New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 441 votes
1y
Welcome, Sarah! Buying land in San Diego is a solid interest, there are plenty of opportunities, but also local factors like zoning, permits, and development costs that play a big role. Take time to get familiar with things like lot setbacks, utility access, and any restrictions tied to the parcels you're looking at. Happy to help anytime as you learn more and move forward.
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Adam KingBusiness Member
Real Estate Agent · San Diego, CA · Member since 2023 · 87 posts · 45 votes
1y
HI @Sarah Fisher
Welcome to the BP forums!
Land investing can have some amazing upsides, but there are a few drawbacks:
- Financing on raw land is more difficult, and typically requires a larger down-payment and higher rates when compared to purchasing a home with a conventional mortgage.
- There is a lot more homework to do to ensure that the property will fulfill all of the needs you are looking for.
- San Diego specifically has very low inventory on raw land, and many owners aren't realistic about their current value.
The question that I ask, is what is your reason for purchasing land?
- Is the intent to hold it for a long period of time to let it increase in value?
- Are you intending to build on it? This can be very lucrative, but requires a lot of forethought and planning to make it work well.
- Is this going to be for agricultural purposes, using a USDA loan? If this is the reason you can get very favorable rates and terms. This is a great option if you plan on buying a piece of land zoned agricultural.
I hope that the information provided was helpful. If you have any specific questions, I am here to answer them for you.
[email protected]619-818-2814
Adam King - NewTown Real Estate520 Reviews
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