wannbelord, what’s your stated goal for this investment? You want a place to park $100K? Then liquidate in 10 years to pay for children’s tuition (<--- which by any metric is currently a rip-off)?
This is a reasonable amount of time to Buy and Hold, and potentially yield some appreciation, tax benefits, and cashflow.
Carmel Valley, UTC, Irvine, these are more appealing to a high earning demographic. Mira Mesa, not so much. The riskier the demographic, the high the cashflow generally. I own condos in UTC, Oceanside, and San Marcos. I make the most money in the lowest demographic in San Marcos, but have the least headaches with my UTC tenants. It's a tradeoff, so that's why I diversified.
San Diego and OC are both tough markets to buy at market prices and then immediately cashflow, but it's doable. You're competing with average buyers who will pay a premium to be in nice area, something that counters the investor's approach.
The other thing to find out is if you will receive any tax benefits by purchasing a rental property. Many people automatically assume they will, but if your income is too high, many of those benefits dissipate.
There are pros and cons to owning an SFR vs Townhome/Condo. With an SFR, the entire property is your responsibility which can bring some unexpected large expenses: roofs, decks, irrigation, exterior painting, etc, and usually with less amenities to offer renters: no pool, spa, fitness center, no water bill, etc.
Of course, you're paying a monthly HOA, so it's a tradeoff. If you want to be "cheap", your new place will quickly look just that after 5 years, which will then affect the demographic that will want to subsequently rent there. Of course, that will then affect resale value, so choose your land-lording approach wisely.
I opt to keep my units in tip-top shape. Most have remodeled and present very well, and I command top dollar and quality tenants who appreciate that type of rental. Show that you don't care about your property, and the tenant will follow suit.
Ultimately, you just have to choose what style of landlord/investor you are, then that will dictate the type of property you should buy.
