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San Diego Real Estate

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San Diego Apartment Investors November Report 2021

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:

Selling Here and Buying There
Many people, as you know, are selling their properties in San Diego and moving out of state. And not only residential property.
Investors are doing it too! Investors are heading to landlord-friendly states. States like Texas, Florida, Arizona, and even Indiana. But before you cash out here and buy there, you need to know the pros and cons of investing in another state.
Let’s start with the Pros:
-Lower sale prices allow you to leverage your purchase power into more volume.
-Buying in other areas diversifies your real estate portfolio. So does buying different types of property.
-Opportunity to reset your depreciation schedule.
-Favorable landlord laws. Easier eviction process, no rent control, with lease agreements that favor landlords.
And now for the Cons:
-Lack of knowledge of the local real estate market, neighborhoods, and rental markets.
-Must have a solid local team working on your behalf.
-Slower appreciation of property values.
So how does this look in “Real Life” when it’s done right?
Our clients have been selling their 2-4 multi-units here. And some have been buying up brand new apartment buildings in Texas.
Around the same time, we list a property they have in San Diego they have their team in Texas get to work. After doing this process now a few times it’s become a fairly streamlined process. But it didn’t start out that way. It took time to dial in the right location, market, and type of property to invest in. They studied the available markets across the US. Our clients then settled on a college town. They quickly realized they had found the right spot with a strong rental demand.
It was time to find the right team to help them. They needed more than just a knowledgeable realtor. They needed a reliable property manager, solid maintenance people, and a seasoned contractor. Remember, no matter how good the deal is, it’s only as good as your ability to manage it.
The clients have been selling their San Diego real estate here. Then doing 1031 exchanges to buy BRAND NEW construction multi-units. Because prices are much lower, they are able to leverage their purchase dollars. Allowing them to invest in multiples of buildings. Turning 4 units in SD into as many as 16 brand new units in Texas.
With the location close to the college, they are in a strong rental area with above-average rents. Cash flow is double what they were getting in San Diego.
A few of the properties they sold were getting close to the end of the 27 1/2 year depreciation allowance. So they reset that allowance schedule with their purchase.
And because they are new buildings, upkeep and maintenance is minimal and will be for many years to come.
Yes, these clients are trusting in the local team there. That team they hired to guide them with purchases, upkeep, and property management.
These clients realize a couple of things. Their new properties are in an area that won’t have nearly the same appreciation as San Diego. (few markets do)  However, the trade-off is the crazy cash flow! It more than makes up for it.

• Be sure to visit our YouTube channel, San Diego Investment Property. This channel keeps you connected. We’re happy to help you navigate the income property world here in San Diego!

• Please let us know who you can refer us to. Someone you know who can use what we offer.

• Stay current with the latest real estate news and market conditions. Send your current email and phone number to lyleandlynnor@gmail.com.

• We’ll set you up for monthly neighborhood market updates and a new app called Homebot. It’s a personalized home finance tool. Homebot helps you manage your biggest asset, your home!

Copyright © 2022 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: August 8, 2022, 10:13 pm

Based on information from CRISNet MLS and/or CARETS as of August 8, 2022, 10:13 pm. 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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