Moving advice from San Jose to San Diego CA

Moving advice from San Jose to San Diego CA

New to Real Estate · San Jose, CA · Member since 2020 · 13 posts · 2 votes

Hi all!  My husband and I live in San Jose, CA but our long time goal is to move to San Diego, and I think it may happen hopefully in the beginning of next year (Jan/Feb?).  My husband is working from home until the end of July 2021 and works at a reputable tech company.  We want to take advantage of this opportunity to move to SD.  Unfortunately permanent work from home might not be an option after July 2021, so there is a chance my husband has to look for another job in San Diego if that's the case.  I have to quit and find a new job in SD, and unsure of how quick I can get one.  We will rely on my husbands income when we move, although, I will start looking for jobs a month or two before we actually move.

Given our situation, would it be more beneficial to find a short term rental (6 months or month to month lease vs. 1  yr) when we make the move from San Jose to SD?  I don't want to lockdown a rental too long, as we are on the lookout for purchasing our first investment (we want to purchase a multi-family and start house hacking).  Also, how does it work to get pre-approved for a home given that our job situation isn't secure?  And is it best to find a realtor with some investment experience to help find us a multi-family when we start looking?

One last thing... any advice on breaking leases early?  Our lease doesn't end until April 2021, but we want to move sooner.. how would we best approach this with our property manager?  We are very good tenants with stable jobs, pay on time, rarely call to have them fix issues, and keep our rental very clean.  I imagine if we want to break our lease early, we would still have to pay rent until our lease is over, but we want to avoid that if possible and see if we can work something out.

Appreciate any advice!

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  • Real Estate Agent · San Diego, CA · Member since 2020 · 26 posts · 24 votes
    5y

    Hi Dominique! Congratulations on taking the steps towards moving to beautiful San Diego. You pose a lot of valid concerns, here's what I can tell you from my experience. 

    My team specializes in helping investors find their first owner-occupied multifamily properties. We've helped many clients buy 2-4 multifamily properties in areas that demand top rental income and appreciation. I'd be happy to send you a list of the top areas in San Diego to invest in right now.

    With real estate prices increasing, signing a 6-month lease and waiting to buy could result in higher prices. If you're open to starting your search sooner than later, you can potentially move into your new home in San Diego when you find the right property, while staying a bit longer at your current rental. We've seen common situations where the seller will leaseback your property to give them more time to find their next home, so this is an option if you'd like to stay at your current rental longer as well. 

    You have a valid concern about working remotely. I'm working with a client who has run into a similar situation and is moving down from San Francisco. Depending on who your lender is, they may require you to have an official letter from your employer stating that you can work remotely indefinitely. Lenders want to ensure you will stay in your San Diego home and owner-occupy, even though your job is elsewhere. However, not every lender will require this and we work with some lenders who are flexible. Let me know if you'd like to get connected. 

    Regarding breaking your lease, I've heard some property managers will allow you to break the lease if you find another tenant to take over. This may not be the case with your property manager but could be worth a conversation. 

    I hope this helps! My team has an upcoming webinar specifically on 2-4 multifamily property investing in San Diego on October 7th. If you'd like to join, let me know and I'll send you a link to register!

    Sherry Chen

    DRE #02017034

  • New to Real Estate · San Jose, CA · Member since 2020 · 13 posts · 2 votes
    5y

    @Sherry Chen Thank you so much for your reply!  It’s nerve wracking moving from our hometown to a brand new city, especially with our uncertain job situation.  But either way, our goal since 5 years ago was to move to SD, so we really want to do this!

    I think we may be open in searching for something early, we just don’t know how to really go about it since we’ve never bought a home before (especially an investment property).


    I would love to get a list of your suggested areas to invest in, and information about your upcoming webinar!  I will keep in touch.

  • Realtor · Encinitas, CA · Member since 2020 · 125 posts · 92 votes
    5y

    Dominique Le welcome to the BP forums; I think you are doing the exact right thing by networking with investors in San Diego before you make the move. You may even find your new San Diego landlord here! You do have quite a few unknowns in your scenario so I think it will be important to be flexible and to build up your reserves before you make the big move. 

    Can you talk to your PM and ask what their policy is on breaking the lease? You may not need to pay rent through the end of your lease. I ended a lease early without penalty when I informed my landlord in advance and they had ample time to get a new tenant lined up. This could help you decide your timeframe for moving. What is your motivation to move in Jan/Feb vs when your lease is up in April?

    With the job uncertainty and the general COVID uncertainty I think a 6 month lease would suit your situation well. You will be able to get situated and explore the city and the different multifamily markets. For example are you thinking about multifamily in the "affordable" north county beach town of Oceanside or is North Park more your speed? A six month lease would also let you sort out your employment transition to San Diego. Ideally you will not want to show a gap in employment or change in industries for lenders.

    Whatever you do decide please keep us posted so we can follow your REI journey.

  • Twana RasoulBusiness Member
    Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
    5y

    @Dominique Le looks like you are getting closer to make the big move....exciting!

    Multifamily house hacking is the best way to start off investing. Heck I house hack and it’s certainly not my first investment and I really enjoy it and I’m currently looking for my next house hack as well.

    I wouldn’t be too concerned about the lease you have, I have let my tenants break a lease without penalty when they have given me enough notice so I can fill a unit without vacancy. Talk to your property manager and see what your options are.

    Also, it’s probably a good idea to purchase a property before leaving your jobs unless you will continue to be in the same industry otherwise you may need 2 years into that new industry before being preapproved.

    Best of luck!

  • New to Real Estate · San Jose, CA · Member since 2020 · 13 posts · 2 votes
    5y

    @Nicole Holcomb thanks for your suggestions!

  • New to Real Estate · San Jose, CA · Member since 2020 · 13 posts · 2 votes
    5y

    @Twana Rasoul thanks to hear back from you again Twana! I really appreciate your response. My husband and I are just trying to figure out the best transition from San Jose to San Diego. Renting seems to be an easier decision when we move, but I’m afraid it will affect our chances of getting preapproved when I quit to move and him not having permanent work from home. We won’t find out until end of July 2021. I do want to purchase our first investment by end of next year.

    From what you suggest, it is best to purchase a home before we move to San Diego, while we’re both at our jobs in San Jose? Do we need to get preapproved from a lender in San Diego then? As you said, if we get new jobs in another industry, we might not get preapproved for another 2 years. What if we get new jobs in the same industry?

    Thank you!

  • Twana RasoulBusiness Member
    Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
    5y

    @Dominique Le I would consider talking to a lender before making any moves...I have a client from the Northeast who is buying a multifamily out here to live in and then planning to quit her job. I can recommend a great local lender if you are interested so you can ask these questions before your next steps.

  • Residential Real Estate Broker · San Mateo, CA · Member since 2013 · 585 posts · 264 votes
    5y

    @Dominique Le your lender is going to be the most important part to this. Pre-covid, you for sure needed a letter stating you could work X distance from your work if it was that far (or remote x part of the time at least, etc.).

    Not sure how familiar you are with the area, but it doesn't hurt to live in a place for a bit before. That being said, even a furnished rental for a few months could make sense if you don't want to commit to a 12 month (although most landlords allow early term fees, etc.)

    Excited for you!

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