OM, Other/Just Looking in 02115

Is buying a vacation rental property in La Jolla a good investment?

Asked by OM, 02115 Mon Aug 25, 2008

If not La Jolla, please advise on which area in San Diego is best for vacation home investment.

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Many agents are going to disagree with me, but it is not the optimal time to be BUYING an INVESTMENT PROPERTY in La Jolla right now.
There are definitley some great buys here, but with over 75 Notices of defaults, and more coming every day, la Jolla is going to be hit pretty hard in the next 12-18 months. It has taken longer then the rest of the county, as the more affluent homes had cash to back them up, but that is quickly dwindling. La Jolla will always be a beautiful location...obviously that is why I chose to work here on Prospect St, and it may be a good time to find the right property as a residence, but for investments...I would say wait it out a little while longer.

Contact me if you would like some added information
1 vote Thank Flag Link Sat Aug 8, 2009
As someone who has purchased, developed, and managed vacation rentals for nearly 10 years, I do have some experience with these types of properties.

The easy answer, and also the most honest, is "it depends."

Investing in the right vacation rental is probably the epitome of location, location, location. A home right next door to a an existing vacation rental may do better or worse on the market simply due to amenities or lot and home orientation.

It takes an some experience to locate the right property, but when you do, they can be great for cash flow.

Regarding location...I've had better ROI in Mission Beach for vacation rentals over any other location, but that doesn't mean that is a hard and fast rule.

Give me a call if you would like to discuss any of this further, or take a walk around some of the short term rental properties I like or have been involved with.

Mark Stuart
Prudential California Realty
0 votes Thank Flag Link Mon Dec 27, 2010
I would buy in La Jolla, but only if the property is one that you would move in to when ready. Only buy if you can maintain it without renting it, the rental income would be a bonus, with tax benefits.
La Jolla is not a trend, it is well known and well established community, and will remain a choice destination.

If you need more information,
Anna Hershey
Prudential California Realty
0 votes Thank Flag Link Sat Jun 26, 2010
I read through many of the answered questions below. To be honest, La Jolla is not the best place to purchase a beach vacation rental. I know because I recently sold my home at 320 Rosemont Street in Wind N Sea La Jolla area. My brother and I owned the home. We considered using it as a vacation rental, but after crunching the numbers, it did not work and the risk was too high. Furthermore, my family and I have built 11 spec luxury homes in la jolla over the last decade, so I understand the investment and cash flow side of what you are considering.

That being said, keep a close eye on the la jolla market in 2010 as you will begin to see many new short sales pop up here . I know la jolla extremely well having lived here since 1997. Great place and good opportunities this year. Any further questions, give me a call 619-823-2120
0 votes Thank Flag Link Mon Jan 4, 2010
I am a 33 year La Jolla resident and 7 year local realtor with Prudential La Jolla. I have rented a ocean front estate for $30k for the month of July as well as a contemporary home on the hill for $22K for the month of August 2008. Although Vacation rentals were down in '09, La Jolla is a hot vacation spot for wealthy. There are also not many five star hotels located in the beach and village area which make vacation homes the best option.

First of all you will need to know that La Jolla is very expensive and the property may not cash flow without a significant down payment. However, my clients went to Europe for the month of July and their vacation rental income paid the mortgage, utilities and for the entire trip!
Second tip is that several of the condo buildings have minimum rent requirements in the HOA rules. Such as one year or even 30 days, so make sure you know this before buying. I like single family homes walking distance to beaches and or the village.
Third is have a long term mentality. La Jolla is anywhere from 15%-20% down in prices. Appreciation will happen in the next five to ten years. Email me and I will send you info and some listings.

Anthony Halstead
Prudential California Realty
0 votes Thank Flag Link Wed Nov 18, 2009
Too complicated to answer your question without knowing alot more information about you and your financial goal. My strengths are I have worked in La Jolla past 7 years, have banking background, and I own several propertys including vacation rentals so I practice what I preach. Please call me to discuss your situation then I can advise you how to proceed ,
Don Hickey 858-337-9396
0 votes Thank Flag Link Sat Oct 31, 2009
I am asked this question all time with worldwide investors, from commercial, multi - family, residential, recommend a real estate consultant who can work in concert with you develop a business plan short / long term goals.

I am a real estate investor, however have tremendous library before I jump out and purchase anything make right decision

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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0 votes Thank Flag Link Sat Aug 8, 2009
In 92037 there are some very good buys right now. If you are looking for a Vacation Rental, Woodlands is a great complex. I have sold several in this complex with the sole intent of keeping them rentals.

This area of LJ is not as pricey as say the "The Cove", "The Shores" etc...

I would be happy to provide you with a long list of past clients who have either stayed at the property as a vacation rental or one of the owners I have sold it to...

I created a website called for La Jolla Area Homes and its 99% complete..

You can find everything you need to know about LJ.. This afternoon, you will be able to search for homes as well.
Web Reference:
0 votes Thank Flag Link Tue Nov 4, 2008
La Jolla is a great beach town...but the RE is expensive, so you would need to come in with a large downpayment to break even on the monthly PITIA. Real estate is a good investment when the decision to purchase is made in alignment with your current financial situation and your future financial goals. Send me an email if you would like to explore the possibilities -
0 votes Thank Flag Link Mon Aug 25, 2008
The best invesment in San Diego is the one with the biggest return within your timeframe.. Without knowing more... its tough to say... La Jolla is great, so is PB and North County... How bout NY?
0 votes Thank Flag Link Mon Aug 25, 2008
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