Updated about 4 years ago on . Most recent reply
Introduction, Looking for San Diego advice
Hello,
my name is Stephan, living in the US for ~3 years and recently moved to San Diego ( my wife and I love it here). Due to tax reasons I will move money from my home country (Germany) to the US ~200-300k and looking to invest in real estate. Given the San Diego prices I wonder if its a better idea to look for opportunities in Las Vegas or Phoenix since they are a short flight away. I am not looking to buy a single house (too much concentrated risk). I am happy about all tips how I could maybe invest in the San Diego area after all given my budget (1-1.5M given 20% down)
Sincerely
Stephan
Most Popular Reply
Many reasons to invest in SD:
- Median sales price increase year over year approximately 10%
- Months supply of inventory down to 1.2 (lowest we've ever had).
- Very low supply to high demand.
- SD increases in rent 3-4% a year. An increasing rental market will generally follow a similar trend line w/ an appreciating market. Know that cash flow is actually quite good here, just not INITIAL cash flow generally.
- Tech Boom is happening now here in SD. Prices started to skyrocket around June when Bay area, Boston, & NY tech related careers started to work remote and came here.
- Inventory shouldn't change much over the foreseeable future. Running out of room to build and new construction isn't keeping up w/ demand.
- Recommendation is start w/ a 2-4 unit w/ a value add play. Majority of opportunity is in Metro SD, National City, Chula Vista and Oceanside / Carlsbad / Vista up in North County.
Your total return will should great on a spreadsheet when factoring in compounding interest from appreciation over time, along w/ cashflow, prinicipal paydown, & tax savings.