$2 million in savings at 3.6% is still $72k per year, or $216k during the last 3 years, of which $101k went for rent, so you are positive $115k over the last 3 years.
you know The Country will be one of the last to fall in value. Due to #1, LA is at least 1-2 years behind SD. and #2, the Asian factor, which does delay the crash some more.
it is safe to assume most of SD have already experienced 30% drop from peak (except isolated coastal pockets). The fact that your target area has already seen 15% drop is quite encouraging for you. you are likely to see another 15% drop in value in your neck of the woods come 2009.
but unfortunately, if you want to fully realize your profits from the “sell and rent” strategy, you can’t buy until 2011. That’s 4 years from the 2007 peak you mentioned previously.
This is the perfect example of how good neighborhoods hold up value and keep peaking and crash late.
