Thanks for the information. Without seeing the house, just compare to recent sale in the same complex (http://www.sdlookup.com/Property-8ECA0327-3738_Ruette_San_Raphael_San_Diego_CA_92130), it did look like a good deal. But if it is trashed, no upgrade, near El Camino Real, then it is not that a good deal after all.

It seems that Carmel valley is not immune any more with these listings and some recent sales, such as this one:
http://www.sdlookup.com/Property-0458391E-4726_Caminito_Lapiz_San_Diego_CA_92130.

Date Price Held Return Annual
11/07/2008 $637,290 4y -13% -3%
10/19/2004 $735,000 4y 2m 52% 10%
07/28/2000 $485,000 2y 3m 58% 22%
04/08/1998 $306,028 n/a – –