So you want to invest in Real Estate in SoCal, but you don’t want to lose money. Hmmm good luck! Any area that qualifies as a vacation area in SD is coastal, and still grossly overpriced.
4plexowner always used 8-10 GRM as his yardstick and its a stick I’m comfortable with too. If properties don’t come down to that, then they aren’t investments, they are speculative plays.
You are right to be fearful of Temecula we are entering the tumultuous period not leaving it behind.
Losing faith in the markets is both a healthy and dangerous response. Its as if you think there is some safe sure bet out there, real estate maybe.
The fundamental lesson to learn about the period we are in is that NO investment is safe, not in terms that we are used to thinking. What matters most here and now is liquidity. Return of capital trumps return on capital in insecure times.
