Condo in Normal Heights (San Diego: apartment, foreclosures, rentals)

[danmanca]

Thinking of buying a Condo in San Diego, CA in the normal heights area. Its a 2Br/1ba condo for around $330,000. Its around 860sqft. Does anyone live in the area, what do they think of it. How does the value compare for a 1ba vs 2ba? The condo is right off of Adams Ave. Does anyone think home prices will increase in this area over time or will they decline or level off? The condo itself sold for $230,000 in 2008 after the housing crash. However another similar unit in the complex (only difference being that it has a detached 1 car garage) sold for $350,000 two months ago. I plan on living in the condo as my primary residence and renting out one of the 2 bedrooms for toe foreseeable future.

[kettlepot]

Is the condo a quality building or is it an old Huffman apartment which has been converted into condos? Is it north or south of Adams? Both of these may affect the responses you receive. How plentiful is the street lighting on this block?

Generally speaking, Normal Heights is an up and coming neighborhood. To some degree it has already up and came. It really has most everything you need - grocery store, drug store, restaurants, bars, and smaller shops, some of which are unusual.
The neighborhood overall should hold its value well because it is still on the upswing. However, most of the above trend line appreciation has probably already happened.

It has been negatively impacted by the Huffmans built in the 60s and 70s, but has benefited greatly from the advent of the coffee house culture. There is still plenty of grittiness left in the area that you will have to deal with, so it is better for people who don't have kids.

My head says that if the building is solid, you will do fine. If you could swing one of the older houses, north of Collier, you would do even better.

[danmanca]

The condo is just north of Adams. Building was built in the 1980s but remodeled in 2006. I don't have any kids yet so I think I'm okay there, I'm planning to live in the condo for now and rent out the second bedroom if possible. Seems like a good area. I'm not looking to make a fortune off of it, just hoping to build a little equity to where I could rent it out later or sell it in 5-10 years and not lose money

[oddstray]

Originally Posted by danmanca

The condo is just north of Adams. Building was built in the 1980s but remodeled in 2006. I don't have any kids yet so I think I'm okay there, I'm planning to live in the condo for now and rent out the second bedroom if possible. Seems like a good area. I'm not looking to make a fortune off of it, just hoping to build a little equity to where I could rent it out later or sell it in 5-10 years and not lose money

Condos don't grow in equity nearly as fast as SFHs or even townhouses. In 5-10 years, you may or may not be able to make back what you pay for it, depending how the economy is behaving when you want to sell.

I'm not saying you shouldn't do it. It might be just what works for you in your current circumstances. But do consider it before you decide to buy.

[NYSD1995]

If you ultimately plan to rent it out it's a good area, to sell not so good, condos over there are mostly rentals anyway.

[RosieSD]

My daughter has lived in Normal Heights for the last five years, and she also has a number of friends living in the area. She really likes living in the area and has enjoyed the way the neighborhood has changed in that time.

Is the condo north or south of Adams? I am generalizing a bit, but north of Adams is considered a little more desirable and is perhaps a bit quieter and safer.

I've noticed that there are a lot of condo foreclosures and pre-foreclosures in the Normal Heights area, so be sure to carefully investigate the complex that the condo is in. If there are a number of pre-foreclosures or foreclosures in the complex, that could spell trouble. Definitely learn as much as you can about the condo association as well to make sure that they are financially solid.

Here's a good article from bankrate.com on questions to ask before buying a condo: What to know before you buy a condo | Bankrate.com

[moved]

What are the cross streets? That may help with more information.

[NYSD1995]

My friend bought a 1br condo north of Adams, within a year all the owners were gone and she can't sell the condo because no one will write a loan, she rents it out and since moved away from SD.

[SanDiegoSarah]

Originally Posted by Sassberto

My friend bought a 1br condo north of Adams, within a year all the owners were gone and she can't sell the condo because no one will write a loan, she rents it out and since moved away from SD.

This brings a good point - about checking in to the percentage of owner occupancy and delinquency in the complex and of course reviewing HOA docs, etc. Typically you wont get HOA docs until you are in escrow but you (or your agent) can call the HOA ahead of time, before the offer is even written to find out information about owner occupancy etc. They probably wont tell you an owner occupancy percentage but they will tell you how many "on site" and "off site" owners there are and you can do the math from there. Something to discuss with your lender about. If the percentage of owner occupancy is under 51%, certain types of financing will not be allowed (thus narrowing the pool of potential buyers).

And as far as the 2 bedroom versus 1 bedroom - 2 bedrooms are always going to be easier to sell (of course when priced right) so my opinion is that if affordable, the 2 bedroom would make a better investment.

[danmanca]

Originally Posted by moved

What are the cross streets? That may help with more information.

The Cross streets are Adams and Mansfield. Its just north of Adams