[quote=enron_by_the_sea][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.[/quote]
True… But some of us are just cheap…
Other thing though is some properties that are more likely to appreciate “better” might also not as well cash flow as good. ….Although does seem it is very tempting right now to focus on the lower end of the cap rate now, and take a slight higher risk on appreciation me thinks.
