I’ve often thought about Orange County vs. San Diego and ended up choosing SD just because I live here and wanted to give managing the property myself a shot.
My first condo was actually bought with the exact same intentions in mind. I was thinking that my son was a newborn and rents tend to go up in SD so if I can cash flow a little now then I’ll cash flow very well 18 years from now and optimistically use the cash flow to help pay for my sons education rather than selling the property. If I were the OP I’d spend less to get your feet wet on managing or even owning investment property just to limit my risk. Assuming it goes well then I’d think about making another investment. In my case it went very well and what started as one condo turned itself into another one with an ocean view through a refi on the original property and because we found another opportunity right here in North County.
It’s interesting because people always recommend SFR’s, but in my opinion a condo in a desireable area works too. If someone is looking to live in a particular area….they tend to look at all options in that area, not just SFR’s. The SFR’s rent for more, but they tend to cost much more too. I would think if one was thinking of appreciation then the SFR might be better in many instances, but I’m only looking for cash flow and to keep it rented forever as rents go up in the area. I personally just believe buying for appreciation to be a bit more tricky than buying for cash flow as rents increase over time. I love asking people what their rent was 10 years ago and it often blows my mind that what was expensive 10 years ago tends to be very cheap by todays standards.
Do some homework on both potential areas and decide for yourself which area is best for you. I wish you the best…Good luck!
