University City (92122) or La Jolla(92037) condos area great investment.s These condos house the students from UCSD. The rule of thumb is that each bedroom rents for about $700-800 each. So if you buy a 3 bd. condo you can rent it for about $2100-$2400. The great thing about this area is it is really beautiful and relative to other areas it holds its value because of the need for housing by students. There was an article in the LA Times a few weeks ago about how college town real estate is holding its value better than other areas. Check out my website to seach the San Diego MLS for free. No registration is required. Drop me a line or give me a call if you have any questions.
Wherever you decide to buy in San Diego, you may want to consider buying a vacation rental property. I would aim for a property that does not cater to the Spring Break Kids; rather, select one that appeals to a more mature audience.
We have chosen to invest in the La Costa Chateaus, which are adjacent to the La Costa Resort and Spa. The return on investment is handsome and the tenants take good care of the property.
To read more, click the link below.
Its a balance between a bad area and being comfortable collecting the rents. The rule of thumb is you need 1% of the purchase price per $100,000 in property cost in monthly rent, or don't buy.
If you are purchasing a rental property the biggest key is to find out what the rents are in that specific area and whether it makes sense. For example, if you are going to buy a condo in North PB for 400k --a 2/2 gets a rent of 1600/month but your mortgage obligation with HOA is more ---and you don't have 6 months in reserves in case your renters decide not to pay.
Investing in a rental property is a smart move right now, especially with the surge of prior home owners being displaced. However, make sure you have all of your ducks in a row and work with an agent who knows the san diego landscape. If I can help you in anyway please contact me:
Denise's statistics link is a good one. You can also find rental information, demographics, school information etc. at my site http://fredeckertgroup.com/template26/nextpage.asp?dls=670 and also at http://www.zilpy.com/ You can see comute times, crime, vacancy rates etc. This should help you decide on an area. I can also recommend Realtors who are investor specialists.
If you are looking to purchase in Mission Bay or Pacific Beach your $400k would go far. You will get a nice 1 bedroom condo or an okay 2 bedroom condo.
Here is a link to some market stats for the San Diego marketplace for the month of March. This will give you an idea of the overall pricing in San Diego... http://www.sandicor.com/statistics/stats2008/03statistics.html
You will be able to see the average sold price and the median price of all areas in SD County. Along with other stats for the market. You can see this information by single family, condos & 2-4 units as well. This will give you a broad idea where you can buy for $400k.
That being said the next question is are you looking for the property to cash flow? You mention you are putting a large down payment, how much will you be putting down payment? I would be happy to run an investment analysis for you. Give me a call.
Out side of the beach, why are you looking only in the S.D. area for an investment? Don't take me the wrong way, I love both Pacific and Mission Beaches..... However you are not there to soak up rays, your investment must make Money! Wealth and profits are the whole purpose for investing.
My team and I are investment brokers with a network of national investors.
My advice would be to diversify your investment dollars and greatly increase your returns. This will also reduce your risk factor, by not having all your eggs in one basket.
PLEASE, before you do any thing, go to http://www.AzBillHuff.com/silver_customform.asp
This is my web page for serious INVESTORS only. You can also contact me to discuss other High return, low risk Real Estate investments for todays market conditions.
Speak with you soon!
Service Since 1981
Residential Investor Network, Pioneer Member
We have referred many clients to Mark Shea located in San Diego. His firm specializes in investment properties. Mark is very professional and can be trusted. He is the only agent we would consider referring our clients to.
You can contact Mark at email@example.com
His web site is http://www.shea-realestate.com
You can reach Mark at 858-759-5238
Best of Luck!
The Schaffer Realty Group