New to San Diego, should I buy or rent?
Hello BP,
My family is moving to San Diego temporarily (say one year) with a prospect for us to permanently reside in Southern California. I have a descent cash-flowing rental portfolio in Minneapolis that I self manage, along with my primary and a full time but flexible job that allows me to travel back and forth. We need a place to live in San Diego and my question is:
Should I sell (one or two) rental property in Minneapolis and use the equity to buy a primary in San Diego or should I just rent in San Diego? Some +/- arguments:
+ diversification over cash flowing and appreciating assets
+ building sweat equity in my next primary in San Diego
+ tax advantages on a larger primary
+ taking advantage of the cool market, that’s selling low and buying low (please comment on this)
+ having fewer properties to manage (yeah managing duplexes is not my favorite)
- high interest rates
- high price to rent ratio in San Diego
- giving up cash flowing assets
- unnecessary transactions costs
Other arguments are welcome.
Neighborhood suggestions are welcome for descent but not super expensive houses (say A- quality) with good access to downtown.
Thanks for your comments!