I think it depends on alot of things. I cannot say how much the prices will have increased by the time she is ready to buy, only that I think they will be higher. I wouldn’t be surprised to see a 5-7% increase. Another parameter will be what are interest rates when she wants to buy?
As for the rental property aspect of it, that is more of a quandry. If she is looking for cash flow then I am not a big fan of rental property purchases in San Diego. If she is looking for appreciation then yeah I guess it is okay. The only rentals I have left are ones that I bought as owner occupied and lived in and then grew out of but kept. So yes your point may have some merit. However it is hard to say what the landscape will be a year from now.
