[quote=sdsurfer][quote=Kingside]I also live in Encinitas and have investment property in both Encinitas and Escondido.
I agree with the statement that Encinitas is easier to self manage than Escondido.
I would not consider currently buying a SFR in Encinitas for investment based on current prices since they don’t really cash flow, even with the current record low rates.
I think it is a mistake to think in terms of only SFRs if part of your thinking is that you want to invest in a place that you yourself would consider living in. That is a false comfort zone. Also, if you are new and not sure you are comfortable being a landlord, going very low end might be less risk if you decide you don’t like being a landlord and want to bail. The lower end is a bit more liquid of a market.
So I would not only be looking at condos, but would be looking at 2-4 unit multifamily as well. There are a lot of older 2-4 multi=family properties in Escondido. They tend to cash flow much better than SFRs, if you can buy right.[/quote]
Thanks for the sound advice Kingside. Having done it in both areas would you say the peace of mind or closer to it is a good trade off for the additional cash flow from the Escondido properties? I just had a look and there actually are a couple triplexes out there in the 4s that would cash flow better, but they look pretty old. The ones I noticed were on the fruit streets (grape & orange) and appeared to cash flow pretty good from day one. Any experience in those areas yourself? Thank you![/quote]
My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.
My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.
For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.
