Travis Houston

Rocky, Thanks for your question.

When you are considering investing in an area that you are not familiar with it is even more important to begin your DUE DILIGENCE process thoughtfully. Since you don't know the area well I am assuming that you are not up to date on the rental prices for the College Area. These are two resources I'd recommend for looking at current rental rates. Make sure to specify "College Area" in the search parameters.
1. http://sandiego.craigslist.org/csd/apa/
2. http://sandiego.backpage.com/ApartmentsForRent/classifieds/R…

Now that you have an idea of what rental rates are for the type of property you are considering it's time to talk to an experienced lender. Someone who understands lending specifically for investment properties. What are the current rates and terms available for investment property loans? Take the time to get Pre-Approved by the lender with a letter in hand for the next step.

Now that you are Pre-Approved for a loan it's time to talk to a experienced Real Estate Agent who understands both foreclosures and the College Area. Get some comparable sales for properties you are considering. Look at what homes or condos have been selling for over the past 3 months that are of the general location, style and condition as what you'd like to invest in. How many day have the listings been on the market? How long is it taking for similar properties to go into pending status? What is the average sales price for the area?

Now blend ALL the above data. Are rental rates acceptable for your parameters? Can you qualify for an investment loan and are the terms advantageous for investing? Next, are there properties that meet your strict criteria for being a solid investment? Take some time to really think this over. Once you've got your numbers and strategy together - Pull The Trigger and start seriously hunting for that deal of the century... which comes along about once a week these days.

Feel free to use this website below to search, sort and save San Diego Foreclosures. It's a great tool for investors.
www.SDForeclosureSearch.com

Many Happy Returns... On Investment,

Travis Houston
San Diego Foreclosure Specialist - Tue Apr 15 2008, 07:28

Monica,

That's a very good question and one that is very relevant for the current San Diego market.
The first thing to get clear about is WHY do you want to buy a foreclosure?
1. Are you a home buyer looking for a personal residence? In that case WHERE you buy a foreclosure will make all the difference for WHAT community you'd like to live in.
2. Are you an investor looking for cash-flow investments, fix & flip or possibly lease option deals? In that case my recommendation would be to look for properties in solid locations, with strong local jobs and infrastructure to support holding the property for at least 3-5 years. With 10--20% down and a 30yr fixed mortgage you can find properties in certain markets that will rent for roughly what your expenses are. These deals DO exist in San Diego at the moment. Make sure you'll have a reserve account set aside with at least 4% of the sales price for any unexpected costs of ownership like vacancies, repairs and such.

Like many of the good people on Trulia will tell you - get advice from an experience real estate agent and lender about your personal situation. A thorough consultation and financial check up are in order before making any offers on any property in any market. Feel free to use this website to search, sort and save foreclosed, bank-owned properties in all of San Diego County.
http://sdforeclosuresearch.com/ - Mon Apr 14 2008, 13:41