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:
Have You Voted NO Yet?
We never intended to become political advocates for your income property. Last June’s market report headline read, “California has Declared WAR on Apartment Investors!” It drew attention to the threat. And unfortunately, the battle continues. Right now you need to fight back by VOTING NO ON PROPS 21, 15, & 19.
Appreciation Continues!
Are coronavirus, rent caps, eviction moratoriums, threatening appreciation? Surprise! Check out the stats below comparing YOY figures! Right now you are realizing record sales prices. Coupled with very low inventory and fewer days on the market. For example, the community of Ocean Beach has only 5 multi-units on the market at the time of this report! The triplex we listed there last week had multiple offers within a couple of days. Buyers continue to look for up leg replacement properties from their 1031 exchanges. Gladly paying top dollar to shelter their proceeds instead of paying capital gains.
The Best Tool for Investors
My sister and I are beyond fortunate. Lyle has shared a lifetime of real estate knowledge with us. Our own ‘Rich Dad, Poor Dad’ guide. Out of all that wisdom, (not covered in the book) one of my favorites is the GRM formula. GRM = gross rent multiplier.
Lots of investor gurus suggest using cap rates. That’s great for large projects with accurate income and expense figures. When it comes to the 2-4 unit market you’ll find most residential agents are just not familiar with units. They have never owned any and don’t specialize in multi-units. So when they land a multi-unit listing they aren’t including all the expenses. Accurate expenses are a must to calculate an accurate cap rate. We find half the time they don’t even get the GRM figures correct.
When evaluating a property or neighborhood we start with a GRM analysis. We find once you have the average gross rent multiplier for the area you can determine pricing. The GRM identifies what a competitive list price should be. It is the quick and easy way to determine if you want to consider a closer look at a property.
Curious about what your property’s current value is? Click the link below to find out. Let us know your address, unit configurations, and rents to get you the value of your property for FREE.
What's My Investment Property Worth?
Check Out the September Stats Now
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. So, rest easy knowing we have a systematized approach for you. 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.
We’ll cover your goals, game plan, and our unique approach to getting you the highest price possible in the fewest days on the market.
