I like the newer Chula Vista area, EastLake, Otay Ranch and Rolling Hills Ranch. The homes are newer and the rents are high. This is a great community for rental properties and future growth.
The fall in prices has many income properties, including duplexes, showing a positive cash flow for the first time in many years. I would recommend that you get qualified for a loan first so that you know how much you can comfortably borrow. You might be able to afford a triplex or 4-units.
Once you find how much you can borrow most realtors can search income properties throughout california to see what you can get in different areas.
San Diego prices are currently lower than many so cal areas further north but find out how rentals are going right now.
In my area, Glendale, we have a low vacancy rate and you can get some good deals now. if you have the down payment and the loan you are in a very strong position as a buyer because most of us can't get loans right now for one reason or another.
Another thing to consider is whether you will manage the property yourself or through a property management agency. If you manage it yourself your costs are less and usually you want it closer to home.
If you use a property management company you can buy further afield.
if you need any further help or would like to look in this area give me a shout.
LizBarkhordarian@charter.net, cell (818) 331-6503.
We specialize in working with local and out of town investors. What I can do for you is deliver you positive cash flow with 20% down.
A couple recent examples of investment property for my clients:
4 bed 2 bath condo that rents for $1500. Purchase price was $113K.
3 bed 2 bath condo that rents for $1300. Purchase prices was $101K.
When you run the numbers and use modest appreciation of 3%, these investors are making over 20% annual ROI.
I will be happy to share more details about the areas in San Diego if you would like to have a conversation.
Nick Rhea, MBA, Broker
Bombora Investments, Inc.
Savvy investors are buying assets below intrinsic value and receiving 5-10% net ROI, while like investors validate this sea change. More than specializing in a particular area, I help folks focus on a method, using my "Market Bottom Triangulation" principle:
1. Sales price falls below the cost to buy the lot and build the home.
2. Net annual return on an all cash purchase exceeds 5%.
3. You have to win seller acceptance over competing offers within a matter of days.
How do you really find a property trading below intrinsic value? Find a good agent. With $200k as a down payment you are in a position to swing a pretty big hammer. I can help you optimize your return on investment. Re: duplexes, I'd stay away from them for now, because the cashflow is not there yet... the prices are still too high. Your best bet it to take advantage of the retail sector where folks are getting squeezed. Most duplexes are owned by investors who are more insulated and who recognize that rental incomes will be trending higher with continuing foreclosure displacement.
Be careful of fixers unless you are a sophisticated investor who knows what they are up against. There is a huge REO market gone berserk largely because many "investors" got swept up in the marketing spin about fixer romanticism.
Give a call and we'll discuss in greater detail. Or check out my blog, which is loaded with useful resources for people just like you :)
As prices have dropped this is an excellent time to invest. The biggest problem is financing the investment but if you have good credit and down payment it can be done and rates are very low. Single family homes may be your best bet, but also you should look at multi-family units. Please visit my blog listed below where you can search all homes listed for sale. Give me a call (858) 352-8280 or send me an e-mail if you would like to discuss areas.