I’d buy a 2/2 condo for low $200k’s with $50k down in your position.
(a) You’ll still have $50-60k cash in the bank for other investments, repairs or fun.
(b) HOA is only $200-300/mo (equivalent to $40-50k of loan) and covers a lot of things that you’d have to pay for yourself in a house. Pool maintenance, exterior maintenance/roof, water bill, etc.
(c) You can use the leftover cash to buy another rental to help pay the bills. Not necessarily in San Diego. But if prices do drop (people here will tell you they won’t), you’ll be ready to jump on something in San Diego.
(d) Condos are nice — the HOA takes care it to some extent if you (say) decide to travel for a month or two. No hiring landscapers, etc.
