Have you thought of investing out of state? I have had an increase in my website views from investors in San Diego. Below is a blog I wrote regarding why a $55k Investment Property in Buffalo, NY is better than a $400,000 investment property.
I figure since you're looking to Invest in Real Estate, Buffalo, NY might also be an option.
We also have two portfolio lender that have no limit on properties financed. But, they have a $300k minimum loan amount and only 3 or 5 year fixed ARMS.
Happy funding, Rudi
I'm not sure if you have your financing in order but wanted to offer you INVESTMENT PROPERTY financing for as low as 5% INT.RATE. 5% DOWN FIXED 30 YEAR LOAN.
Thought I'd let you know since most investor loans are low LTV's and short term.
Call me if you are interested in more information! (214) 293-1831.
If you already own 2 condos, you seem to know what you are doing. Watch pricing trends and trust your instincts. If you have the financial wherewithal to continue purchasing, please keep the housing forecasts in mind.
Your agent can supply you with all of the pricing trends in the area.
Best of luck,
Mark & Kari Shea
Shea Real Estate
Serving Greater San Diego
It looks like you have had a lot of feedback to your question and here is my take, independent of what anyone else has had to say. Given that you have 2 current rentals, it appears to me that you are in the best position to answer whether or not rentals in and of itself in Mission Valley are a good thing. I'd like to think that you know exactly what your cash on cash returns are. Of course, real estate is simply another asset class to invest in. You can compare what you are earning (be sure to factor in tax ramifications) to whatever else you would have been doing with that cash. Even with positive returns and Mission Valley being a good spot (centrally located here in San Diego and appeals to a broad section of clientele), I would always encourage someone to diversify their real estate holdings. If you have all your properties in Mission Valley and something unforeseen happens to that area, you will suffer the consequences. A broadly diversified portfolio with different asset classes would be my first choice, but if your passion and comfort is with real estate, then be sure to diversify there as well. Best of luck!
Chad Basinger, REALTORÂ®, CPA, CFPÂ®
I am glad to hear that you are taking advantage of the current market conditions as there really is no better time to invest in rental properties. I can tell you that the Mission Valley area is a very desireable area for income properties. There is one thing I would like to tell you before giving you an answer to your question. When investing in real estate, you should make sure that you diversify your portfolio. It is not advisable to invest a majority of your capital in a single locality (i.e. Mission Valley) because some point, the rental market there will run into some economic trouble and unless you have invested in other neighborhoods, your income may be at risk. There are many neighborhoods worth considering investing in so when you are ready to take the next step, contact an agent.
Best of luck!
I have owned a couple there and Mission Valley continues to pay off for us. Please get in contact with me if you would like to buy a winner.....we have one that I can highly recommend and is ideal for an ivestor.
I also have another FANTASTIC one in Coronado.
all the best,
Also, if you have 2 vacancies at the same time many renters might not lke one of your units but could be interested in another . . . it would make more sense to have them closer for that purpose.
The only concern I have about Mission Valley is the abundance of rental properties and the continued growth of rental properties. Having brand new units being built currently (The Quarry Ridge project) will add competition that is new construction. All things being equal a potential renter will choose the newer construction over the old. This would cause you to potentially lower the amount you can charge for rent. This has happened in UTC where rental rates from a few years ago seem to have gone down because so many new apartment buildings have been built thereby increasing the competition.
Mission valley is a good area for investment property. If you are looking for higher rental rates and low purchase price, consider the college areas. Owner occupancy can be an issue in many complex's but I have a couple I can send to you that are loan able so u don't need all cash (20 to 25 percent down). Feel free to contact me if you are interested. Wesley guest 619.379.7675 or email@example.com
Mission Valley and Linda Vista areas are good rental areas because of ease of access to public transportation and the freeways. As with any condo purchase it is important to make sure the HOA is strong. Sometimes condo conversions can pose a problem so make sure you have a good property inspection done. I have had good luck using Countywide Inspections for my clients. I generally use Ed because he does find things that may cause problems in the future.
Other good rental areas are UTC and Clairemont.
Best wishes for the New Year
All these answers are great. I actually live in Mission Valley and specialize in the area. It's always a great rental area since it is central to everything. There are several condo communities that are priced great that may provide a positive cash flow depending on your situation. Please let me know if I can help. You can contact me at anytime. Happy New Year!
Mission Valley will always be a strong rental location, so I wouldn't worry about having all of your rentals in this one basket. If you do decide to diversify with location, there are lots of other solid areas in the County. Just keep working the numbers. If you do look into Chula Vista, be sure to ask your agent if there's a Mello Roos assessment attached; the listing doesn't always show that.
Then, just run the numbers. if you need help determining your monthly payments including your loan, just let me know; I'm also available for questions.
Have a happy & prosperous New Year!
Let me know if I can help you in any way!
Joan Wilson (Realtor, SRES, Ecobroker, Certified REO, HAFA, and Short Sale Specialist)
Prudential California Realty
Direct Phone: 760-757-3468
800-975-7481 x 111
License # 01341483
Find Your Dream Home:
I do think Mission Valley is a great area to purchase investment property due to the high concentration of jobs and central location.
However, this all depends on what you are comfortable spending since everything I mentioned comes at a premium. There are other areas such as the southbay where your initial investment may be reduced significantly while your return on investment remains high.
Please let me know if I can assist you locating these properties.
Daniel Di Matteo
CENTURY 21 Award
Also, purchasing condominiums for investment in one of the most popular Cities in the World is much different than purchasing a condominium in a less popular City. I know an apartment manager who says that the vacancy rate for apartments and rentals in general is very low. Which is what you want.
For an investor there is very little maintenance, however you do have HOA fees. Good Luck and Happy New Year!
With that out of the way: Just work the numbers. Are you able to purchase a property and have it cash-flow? There are actually two parts to that answer.
First, can you purchase the property? Not just: Can you qualify, but can you do it comfortably? Is it something that financially won't put you in a bind? If so (and the implication in your question is that you could), then continue.
Second, what is your goal? Is it to cash flow? Is it for appreciation? Is it for a combination? As noted above, I don't know anything about Mission Valley. But I'd be cautious even of an agent familiar with Mission Valley predicting what'll happen to real estate there in a few years. You've got to consider the situation today. And today, the question is whether you'd be able to get a positive cash flow from your investment. If--for example--you could buy a property with PITI and condo fee coming out at $800 a month and you could rent it for $1,200 a month, then it's a smart thing to do. Notice that price doesn't enter into this calculation. Wouldn't matter if you were buying a $160,000 condo at 5% interest, or buying an $80,000 condo with 10% owner financing. The only question here is: What's the cash flow?
I know plenty of people who buy investment properties and don't care if they ever appreciate in value. They're getting $300, $400, $500 a month.
Condos may not be your best investment, though, honestly, my first three investments were condos. But that's something that an agent familiar with Mission Valley can answer better. Again, your main focus should be on your monthly payments versus potential rental income. In some areas, condos offer the best yield. In other areas, they don't.
In a condo, you want to be especially careful about the condo's finances. How many units in the building aren't paying their condo fees? Does the condo have adequate reserves for maintenance and repairs? Can you even get financing--if absentee ownership is too high or there are too many units not paying their dues, then you may not be able to get financing. That's true of condos wherever you look.
With all that out of the way, you then do need an agent familiar with Mission Valley to help you choose the right place.
Hope that helps.