Buying an investment condo (San Diego, Oceanside: real estate, rental, HOA fees)

[greenlite]

What are some good areas in the SD area to buy a new condo as an investment?
What kinda budget would you need for a 1 bd condo in a desirable area that would always be rented out? Not crazy upscale, more like regular.

[echo42]

I have had some success with real estate over the years, alot through dumb luck but I have tried to be diligent in gathering information and analyzing opportunities. This is my personal take on a condo as an investment and I am sure there are some differing opinions.

I do not believe condos are good investment properties. I believe if you are going to buy a condo and live in it, accrue some equity over the course of a decade or so, and sell and move up, then that is a worthwhile venture. Buying a condo for the mere sake of turning it into a rental and hoping to flip or keep for passive income may not turn out well. The added expense of HOAs will eat at profits. Also, condos are notorious for lawsuits. Lawsuits between tenants and HOAs, lawsuits between builder and HOA, lawsuits between builder and tenant....and so on.

With that being said, I have looked at condos in Mission Valley and Downtown for possible investment type of purchase and the numbers just don't add up for me right now..

I think single family homes are the better route if you are considering residential real estate as an investment. Typically homes that are 10-40 years old. I don't think new homes are a good choice, too many variables and and they are not broken in yet. Not too old either.....I have a rental that is closing in on 100 years old and it is a needy love affair. Lots of repairs and upgrades.

[mricu]

I agree with echo42 in that you really don't want to get a condo for investment. The HOA fees would be high, the prices are also pretty much up there that when you rent it out, I think you would be lucky enough to break even.

Another thing to watch out for are neighbors. You don't get to pick who lives around your unit and they can be a nuisance. I had a condo where the upstairs people would always overflow their toilet and bathtub and I would have water damage all over my unit. They don't have insurance so I had to go through mine and eventually after the 3rd claim my insurance dropped me. I would never go the condo route ever again.

The market right now in San Diego is not good for rental investments ... this is just my opinion. The prices are so high for property and the rents are not moving with the price of homes. If you are looking at getting positive cash flow right away, then I'd say look elsewhere (Phoenix, Sacremento, possibly Vegas). If you are not looking for positive cash flow right away, then I'd still say wait because we are in the midst of a housing price adjustment in the next year or two (according to my realtor).

[LagunaMom]

Take Phoenix off the list.
Prices have gone way up in the past couple of years. I've heard that the same thing may be happening in Vegas.
We do have an investment condo (2 bd/2 ba) in Rancho Santa Margarita in OC, as well as an investment home in Oceanside (the Rancho Del Oro area). We've spent more money on various problems on the RDO property than we have in RSM, but taxes and the HOA fees are far higher on the condo.
We purchased both last year. The RSM property took longer to rent. The RDO flew off the shelf while the sellers still were living there. All in all, though, I'd agree with the others on finding a nice single family home to rent in a popular area.

[USDefault]

Blackrock and the hedgers are getting out of the real estate rental game. Ultra-low interest rates, worst time to buy a house if you are a cash purchaser. Mello-Roos + HOA = cash bleed.

Be sure you know what you are doing before you execute a transaction.

[greenlite]

Any other input that actually answers any of the questions? Im just tryin to find out the market in SD, not Phoenix or Vegas.

[LuvSouthOC]

I completely agree that condos are not the best investments in general, but make sense for a person who wishes to live in an area long term. Moreover, at out current prices in Southern California, I am not sure I would buy right now although there is considerable activity in the market.

[AADAD]

400k will get you a condo near UC or State....maybe. Factor in your dues and compare that to the rents actually charged to see if you can cover your note. If you want decent pro help pm me.

[greenlite]

what can 500k get u?

[shmoov_groovzsd]

Originally Posted by greenlite

what can 500k get u?

500k can get tons of condos in various areas.

Have you EVER been to San Diego?

Have you done any homework online before posting here is this your first stop? I am guessing no research beforehand, because doing a simple search in San Diego from a zillow or redfin would bring up hundreds of condos to answer the price question.

What is the actual goal of your investment property? How long do you plan on owning it? Are you planning on renting it out? Renting it out for the long term of via Airbnb or VRBO? What kind of location do you want it in?