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San Diego 2-4 Investors November Report 2022

by

 

Dear Landlords and Investors,

The principles of leverage, supply, demand, and ROI still push appreciation. San Diego has proven to be a wise location for your investment dollars. But, don’t become complacent. Don’t lose track of why you are investing, regardless of how successful you are. Dealing with unexpected issues can make or break your business. So of course, you’re right to want to understand how the current market affects your property values. You deserve expert guidance. Here are details on what you need to know now:

WHO’S INVESTING IN SD 2-4 UNITS?
 
Investors and first-time buyers are! Even with rising interest rates and prices. How do we know this? Well, one way is last month there were right at 50 closed 2-4 unit sales here in San Diego county. Wondering, why they’re doing this. Well, actually, there are a couple of reasons.
 
How’s your 401k treating you these days? A little rough, huh? This is reason number one why investors are buying real estate over equities. Investors are always looking at returns on their invested capital. Hmm… Equity markets seemed safe for many years. Recently, not so much. And with real property, owners can actually drive to their investment and check in on it. In-person.
 
Most investors lean toward sure things. Like cash flow. And that’s what they get with investment properties. Day in and day out, month in and month out. Year in and year out. Oh, and when you buy equities it’s dollar for dollar, right? But when you buy real estate you can use the principle of leverage. Putting a small percentage down. Then using financing to control a large asset.
 
They do this with as little out-of-pocket as possible. Borrowed money to control the largest asset they can buy. As long as that asset cash flows from day one. Yes, rising interest rates matter. However, as long as their investment cash flows from day 1, who cares? They are comfortable and confident. Moving forward buying tangible assets that self-amortize. Meaning it the property PAYS for ITSELF!
 
And the reason they are buying here in San Diego is that they’ve done their homework! They know they are buying in a historically highly appreciating marketplace! San Diego’s market has a proven track record of appreciation. In fact, here’s how much the average sales price for 2-4 units here in San Diego County has risen. Year over year for the past 10 years. They’ve more than doubled in value in that time span. Even when we see declines in other areas. Yes, San Diego’s market does see dips. Like other asset classes, its market has cycles. But those dips are relatively low compared to the rises.
 
So, property values continue to climb through the years. And guys, so do rents. Meaning that your investment property appreciates in value. Your rents continue to go up through the years. All along your property pays for itself. Regardless of market conditions, shrewd investors smile. They know investment property in San Diego is one of the best investments you can make.
 
BUYING YOUR FIRST PLACE? VA and FHA Eligibility
 
Do you have VA eligibility for a home loan? Then listen up. We know there are quite a few vets here in San Diego that fit the first-time buyer profile with VA eligibility. Well, one of the smartest things you can do is buy a 2-4-unit property as an owner-occupant buyer. You live in one of the units. Rent out the others to offset your mortgage payment. And are able to buy an investment property with ZERO down. Where anyone else who already owns, their primary residence needs to put at least 25% down. That’s for the same investment property. Got your wheels spinning on that one, yet?
 
We recently helped a young vet buy his first triplex in National City doing just this. He moved into the back unit of the property and rented out the two front units to offset his mortgage. Was National City his most desirable place to start out with his first home? Maybe not. But, did he get a three-unit investment property for ZERO down payment in San Diego? You bet he did! And you can too!
 
What if you don’t have VA eligibility, but are still looking to buy your first place? How about using FHA financing to do the same thing? The only difference is you need to put down 3.5%. Oh, and that down payment can be gifted to you from a family member. Everybody loves the good old bank of Mom and Dad. Either way, you’re able to buy an investment property as your first place with very little down payment.
 
If you’ve been searching for a way to get your foot into the door for investing or homeownership here in San Diego. Here’s a solid way to do both. But, I got to ask you. What are you waiting for? You can see for yourself. Prices continue to go up. Affecting your affordability factor.
 
READY TO RETIRE FROM LAND LORDING?
Let’s face it. Being a landlord has its ups and downs. If we had to point you in one direction it would be the Deleware Statutory Trust folks. And here’s why. With the DST, you get all the benefits of ownership. Without the hands-on day-to-day dealings of tenants and property management/maintenance. First and foremost, you get cash flow. And in a lot of instances, it’s even more than the relinquished property provided. Second of all, you’ve got professional management and bookkeeping. It’s automatically done for you. We’ve touched on DST options in the past. Don’t be shy, contact us.

Bookmark-Worthy Links

San Diego Real Estate YouTube -Weekly Videos Keep You Connected

Rentometer -House and Apartment Rental Rate Comps

HomeBot -Personalized Home Finance Tool

ALTOS Reports -Powerful Data-Driven Real-Time Zip Code Market Updates

MLS Access for Investment Property -Custom Searches For Investment Property

San Diego Apartment Investors Market Report Archives -Access Past Market Reports

IT’S TIME FOR YOU TO GET THE ROI YOU DESERVE.

You’ve worked hard for what you’ve earned, and you’re right to want the best experience. Be confident you have professionals on your side. We use ROI-based marketing. Rest easy knowing we use an organized system to market your property. Employing our highly targeted and proven approach like no one else is what you deserve!

Thinking of selling your property in the next 12 months? Call us today for your strategic marketing consultation at 858-218-4511.

Copyright © 2023 CRMLS. All rights reserved. All information should be verified by the recipient and none is guaranteed as accurate by CRMLS. IDX Solution Provided by iFoundAgent.com CRMLS Listing Data Last Updated: March 26, 2023, 6:25 am

Based on information from CRISNet MLS and/or CARETS as of March 26, 2023, 6:25 am. The information being provided by CRISNet MLS and/or CARETS is for the visitor's personal, noncommercial use and may not be used for any purpose other than to identify prospective properties visitor may be interested in purchasing. The data contained herein is copyrighted by CARETS, CLAW, CRISNet MLS, i-Tech MLS, PSRMLS and/or VCRDS and is protected by all applicable copyright laws. Any dissemination of this information is in violation of copyright laws and is strictly prohibited. Any property information referenced on this website comes from the Internet Data Exchange (IDX) program of CRISNet MLS and/or CARETS. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.
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