Check the link in the web reference below for two to four unit properties near SDSU.
BTWâ€¦you may be able to afford a higher loan amount as some lenders will calculate in the rents you will be receiving.
-you have maximum flexibility to move around if your job changes or you want to try a new neighborhood
-you don't have to come up with a down payment and closing costs when you rent
-the landlord handles all the maintenance and repairs on the property when you rent
But another benefit to buying I like is you get to remodel the place to your liking. You can't do that when you rent. Plus, when you buy no one can ever kick you out. When you rent the landlord could sell the place or move back in and kick you out.
I did a quick look in the Realtorsâ€™ website with your criteria in the central San Diego area. There is one place in both Pacific Beach and Ocean Beach, both fixer uppers. There are about a dozen places in both the North Park and Del Cerro area. And about three-dozen places in Clairemont. But from what you said Mira Mesa might be ideal and there are about 60 houses for sale in your price range.
If you want to meet up for a drink Iâ€™ll give you a good download on all of San Diego from real estate to social activities.
Call me at (661) 255-3335 if I can be of assistance.
Cheryl Garner, Mortgage Expert
You can go to this site and look up any neighborhood, seeing demographics, crime, prices, vacancy rates, schools etc. All of these criteria might influence your decision to buy a rental or a home.
Facts: Average time to sell a house in San Diego is UP.
Median Sales Price FLAT
Almost TWICE as much inventory on market as this time last year
Number of SOLD houses each month has DROPPED a lot since MAY.
If you want to look at the graphs and charts for yourself go to the San Diego Association of Realtor's website at http://www.sdar.com/media/CurrentStats.pdf , it is all public information. You can make your own observations about areas, prices, etc. Keep your eye on the ball. Don't fall in love with the idea of owning San Diego real estate until you see the time on the market for houses dropping, inventory level reducing and the number of sales increasing.
Currently about 80% of all house sales are investors buying with cash to fix and flip. Only about 20% are regular buyers. That should tell you what field to play ball on. Follow the money.
Remember: Cash is king. Save. Save. Save. Don't buy a new car, don't eat out, etc. etc. etc.
For you I would suggest; wait and see, save cash, explore the communities, watch the market, and buy on the definite upswing. Practice buying real estate. Find 5 houses a week or 5 houses a month that you would think to be a good deal. Write down the addresses, list prices, and what you would offer and put the pieces of paper away for a few weeks or better yet, a couple of months. Research them later and you will be surprised at what you find they actually sold for. It is a cheap way to learn the market. The other way is really, really expensive.
As for the "metric" you asked about, it is called the "Gross Rent Multiplier". Known as the GRM it is a good starting place for single family rental value compared to purchase price. For example a home in 92117 selling for $400k rents for $1800/mo has a GRM of 18.5. A small condo in the 92106 that sells for $150k rents for $1200/mo has a GRM of 10.4 and appears to be a better investment as expressed in terms of the amount of annual gross rents collected compared to the purchase price. ( Price divided by annual rent = Gross Rent Multiplier).
Steve Innis, Broker
"People First, Business Second"
The answer for you is more complex than this forum will allow. I would want to know some specific answers first to your goals, other than what you just mentioned... Before finding a home to rent out, you should determine how much money you can spend, first for the downpayment, and then per month. You migh find it more advantageous to buy a place that will rent to solid long term tenants who stay year after year, and pay you enough to cover the entire mortgage and taxes, and in the following years, increased rents might give you an additional income that would pay for your living expenses elsewhere...
For instance, a 4 bedroom home in San Marcos/Oceanside that is 2600 sq ft rents for $2500-$2800 a month, and will cost about $400,000. A $400,000 condo in pacific beach that is only 2 bedrooms and 1500 sq ft might bring in much less, is older, and may need many more repairs.
Do you really want to have 2 roomates? Will they each pay you enough to make it worthwhile to live with 2 other people? Are they reliable, or will you constantly have to find new replacements?
You should consider how important it will be for you to live in the property, versus renting it out to one family who might stay for years. Making money in real estate is about the bottom line. How much you spend in expenses, vacancies, painting, repairs, advertising, agency fees etc.- all eats into your bottom line. But it's also about what properties might have the larger gain when you sell it 5-8 years from now. Houses that are detached will gain much more in the years to come than a condo or townhouse. I have more information on my website too about this...for more specific information..please contact me (hopefully) ..or an agent who specializes in investment property.
Please know that the answer to your question will depend upon what you need first, then your renters.
San Diego is a large geographic area, hence, most people want to be close to where they work.
In terms of affordability, the price range you mentioned will be in the North inland or East County areas.
The best areas for renters are those close to downtown SD. You could also consider a town house in the North Park or Mission Hills area as they have a strong rental base.
Best of luck in your search,
Mark & Kari Shea
Shea Real Estate
Serving Greater San Diego
great neighborhood with EXCELLENT rental potential from SDSU transfer students with parental financial support for rent! you can charge higher than standard rent due to the draw of the school.
And you'd have a lot of fun with the roomates!!!
When you are ready to buy CALL ME!!!
I am a sales broker and I also property manage so please feel free to contact me for some additional information.
I have homes that will net you positive cash flow depending on what price range you want. I have condos starting at 65K and homes starting at about 150K in San Diego.