IMO, and this is not advice, I don’t think you can go wrong holding onto investment property in San Diego. That said, given the volatility of the current economic climate, this would hold as long as you know you can afford to do so, even if there is another downturn in the real estate market, and, if you know you will not need the cash for any other of life’s many surprises.
If this holds true for the house, it will also hold true for something returning closer to 6%. So selling and buying other things in CA may not be a bad idea.[/quote]If you sell, you have to pay RE fees. That 5-6% on a $700k house is $35-42k. So, if you sell one $700k house that’s making you 3.5% and buy 2 places ($350k each) that make you 6% (normally) wouldn’t be 6% if you count in the $35-42k RE fee. Now, if you refi out and buy more properties, that might make more sense.
