If you have the cash, you might want to try Trustees auctions. You can easily save 10% on purchase price. The only closing cost is the transfer fee which is about $200 for $200,000 purchase. You need to do your homework before you jump in. The margins are not that good for flipping, but buy and hold is still a viable option. We bought a newer town home in Chula Vista (91914) that rents for 1800+ (3bd/2.5ba/2cargarage). We tried to relocate our tennants and it was a real challenge finding rentals in that area. Every new listing would get snatched up real fast. We had the same thing happen 6 months before when we were relocating other tennants on a smilar town home in Otay Ranch. In both cases units going for $1800 for 3bd/2.5ba were hard to find and would go real fast after being listed. These town homes retail for 230-255, but at trustees you can find one for around 180-210 if you have patience and time. The tax rates and HOA are high, but you have zero to no maintainance for newer contruction 2004-2007. ROI in not that great, but for someone looking for newer construction that pencils out, you might want to give Chula Vista a look.
My partner also has a Condo (3bd/2bat)in 92120. Units in the complex are selling for 130-160 for the 3 bed and 110-130 for 2 bed/2 bath. Rents for the 3 bed are about 1500 and 1300 for the 2 bed.
My aunt has a 2bd/2ba condo in north park near 30th that rents for $1400. It does have wash/dry and 1 car garage. She has no problem renting that place out. The condos in her complex go for about 140-150. There are only 8 units, so it’s real hard to comp since there have not been any sales in the last year. Also not every unit has wash/dry, garage. Of street parking is big in North Park. Having a wash/dry and garage can get at least $100 prem.
We are not big time investors. We are just normal people that have done our homework.