Wujohn
My personal preference is inexpensive condos in the urban core of SD (i.e. a mile or two north/south of I-8). There are condos that can be purchased under $150K and some below $100K. I like older but well maintained complexes with high owner occupancy and low HOA fees. The older and owner occupied means less distress and more long time owners who keep an eye on things. The lower HOA fees obviously means better cash flow. I also like 1BR condo for cash flow because the price discount vis a vis a 2BR seems to be greater than the rent differential. If you can find a decent 1BR with a garage and laundry in the unit you should never have vacancies and should be able to keep long term tenants. The downside is they will appreciate less. This is not to say I dont like 2BR as I see lots of them available well under $150K that can be rented for $1300 to 1400/month. Picking the right complexes is the key.
