[quote=SD Realtor]Given the propensity for appreciation I don’t think 3-6% is to bad at all. It simply depends on your long term goals. You can get double digit cap rates with very little appreciation in other places but getting 3-6% cap rates with say 5% appreciation… nothing wrong with that.[/quote]

Yes I agree about that. Was just checking here to see if my numbers were not off.

But that begs another question. Given that in San Diego, most of your return will come in the form of appreciation, why not buy something that is best for appreciation? Buying a 1/1 condo is probably not the best play for appreciation.