Although I have sold to many investors in Mission Valley. There are deals in other areas. You may want to try diversifying your portfolio. UTC, College Area, or even Pacific Beach are popular areas.
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In this market I would not rely on a break-even rental property hoping your gains & return come from appreciation. From 2001-2007 the big appreciation was pushed up by easy financing. We are not going to have that tailwind this time. This time prices are going to have to rise based on local earned incomes rising & job growth, not creative financing.
Also to cash out on appreciation you have to pay tons of costs. When you sell have depreciation recapture, cap gains tax, closing costs, state taxes, Realtor commission, fix up costs... leaving you with about 60 cents on the dollar of that appreciation. Make sure the investment is worth your har earned capital and time.
i do not know what your future plans are with these properties, but if you plan on holding onto them for a long time I think now is a great time to buy. I have multiple investor clients - two are in the process of buying condo number 3, one is looking for a second condo, and the others are looking for their first investment property. Those who purchased already have purchased short sales, got great deals, and have been able to rent them quickly.
From what is happening out there with the low interest rates, distressed inventory and great negotiating, my investors have been very happy. You have to evaluate your long term goals and make that decision, but judging from my experience with investor buyers, now is a great time to purchase income property. I would recommend discussing your plans with your accountant and financial planner.
Best of luck to you,
Rachel LaMar, J.D.
LaMar Real Estate, Inc.