High energy prices basically killed nascent recoveries in 2010 and 2011.
This being said, I’m unbiased either way. Picking something up in SD County cheap would be great (and deals still exist). I’m also pretty leery of condos, which I’d be limited to in SD Co. A lot seem to be in the habit of charging assessments. $250/mo assessment for a year on something renting for $900-1000/mo? BLAM! There goes your cash flow after regular common charges, mortgage, and taxes.
But…
Real estate in my home state is as low as it has ever been. Looking at a 2-family probate sale selling for $145k (probably will go for $135 since it’s been sitting for a month), both units rent for $950/mo, taxes are $400/mo, utilities are $250/mo avg, insurance is $150/mo. Not in the toniest town, but within walking distance to the center of a VERY nice downtown.
Almost 10% pro forma right there, and not out in “lizardland” or whatever the East Coast equivalent is to it. The current market there is basically the equivalent of San Diego ca. late 2010. Which makes sense, because the foreclosure process is judicial and takes two years longer on average than in CA – foreclosures are just hitting the market now big-time.
