jamsvet – I found that the lower the rent on a unit the more problems I had with the tenants – I managed all my units personally but won’t do that again if I buy more rentals in the future – I am also glad that I got out when I did (2002 to 2006)
I will buy more rental units in the future but I don’t think we are anywhere near a bottom in San Diego’s market – I suspect the rental market will get to the same point it was at in 1995/6 – the vacancy rate was high (8%?) by San Diego standards and landlords were not happy campers – move-in discounts, one month’s free rent, lowered rents and high vacancy rates did not make for profitable landlording and the price of rental property reflected that – we currently have increasing unemployment, dropping property prices and an outflow of people leaving San Diego – IMO all of these factors will result in lower rental rates and decreased prices for rental property
the downtown condo situation is another unknown factor for the rental market – way too many condos have been built (and continue to be built) downtown – I suspect that the majority of them will become rentals and it won’t surprise me if downtown condos become the next low-rent district in San Diego
