Best neighborhood to BUY a rental property in San Diego?

[ctr70]

What neighborhood to people think is the best to buy and hold a rental house in SD? The numbers seem to be the best in places like Spring Valley, Paradise Hills, Chula, Nat City…those types of areas.

Condo conversions are cheap and the rental numbers look better, but many are un-lendable right now. But you could make a bet they will come back long term (10 yrs).

What about 2-4 units? Prices still seem a little high.

Is Las Vegas or the Inland Empire better for single-family investing than SD? The cash flow numbers are certainly better.

Thoughts???

[temeculaguy]

Vegas scares me because I don’t know enough about it and it’s problems seem too large, too much based on tourism.

The I/E is tricky, gotta be picky with regards to communities. There are some opportunities appearing, probably the hardest hit areas are those around March AFB, it never recovered from the base closing or the last downturn. I’ve never actually been there because it’s an armpit and I have no reason to go there but there have been some developments lately that will cause a demand for rentals.

http://nctimes.com/news/local/swcounty/article_889d6fee-4ae3-56f6-98e8-77234209cac6.html

I can’t find the articles but there is also a korean rail car company and a korean household goods company (don’t know what that means, maybe spoons and blenders and walmart crap) that are setting up deals there to manufacture. The closed base area has freight access to LA, OC and SD, plus a cargo airport and is in some foriegn enterprise zone for taxes. I don’t know what it all means other than dirt cheap rentals and bunch of jobs for renter type demographics.

I want to add a grain of salt, the one that has kept me from the lower end neighborhoods and high density rentals. The lowest end jobs are the ones getting beat up the most, the welfare benefits are being reduced and illegal aliens are moving away and self deporting. This means less low end renters, at least it’s a fair argument and one that has me shying away from what are some good numbers.

The low end SD areas, you gotta ask someone else, but they are places that may suffer a similar fate. As a community, it’s not the worst thing in the world to have your poorest pack up in search of greener pastures, but as a landlord, it would suck because they are pretty much the only people that will live there.

I also keep reading stories regarding certain schools and districts that serve primarily spanish speaking students are losing enrollment, it’s a more transient demographic than others, I’m afraid of being left holding the bag if the shift increases.

[temeculaguy]

Vegas scares me because I don’t know enough about it and it’s problems seem too large, too much based on tourism.

The I/E is tricky, gotta be picky with regards to communities. There are some opportunities appearing, probably the hardest hit areas are those around March AFB, it never recovered from the base closing or the last downturn. I’ve never actually been there because it’s an armpit and I have no reason to go there but there have been some developments lately that will cause a demand for rentals.

http://nctimes.com/news/local/swcounty/article_889d6fee-4ae3-56f6-98e8-77234209cac6.html

I can’t find the articles but there is also a korean rail car company and a korean household goods company (don’t know what that means, maybe spoons and blenders and walmart crap) that are setting up deals there to manufacture. The closed base area has freight access to LA, OC and SD, plus a cargo airport and is in some foriegn enterprise zone for taxes. I don’t know what it all means other than dirt cheap rentals and bunch of jobs for renter type demographics.

I want to add a grain of salt, the one that has kept me from the lower end neighborhoods and high density rentals. The lowest end jobs are the ones getting beat up the most, the welfare benefits are being reduced and illegal aliens are moving away and self deporting. This means less low end renters, at least it’s a fair argument and one that has me shying away from what are some good numbers.

The low end SD areas, you gotta ask someone else, but they are places that may suffer a similar fate. As a community, it’s not the worst thing in the world to have your poorest pack up in search of greener pastures, but as a landlord, it would suck because they are pretty much the only people that will live there.

I also keep reading stories regarding certain schools and districts that serve primarily spanish speaking students are losing enrollment, it’s a more transient demographic than others, I’m afraid of being left holding the bag if the shift increases.

[temeculaguy]

Vegas scares me because I don’t know enough about it and it’s problems seem too large, too much based on tourism.

The I/E is tricky, gotta be picky with regards to communities. There are some opportunities appearing, probably the hardest hit areas are those around March AFB, it never recovered from the base closing or the last downturn. I’ve never actually been there because it’s an armpit and I have no reason to go there but there have been some developments lately that will cause a demand for rentals.

http://nctimes.com/news/local/swcounty/article_889d6fee-4ae3-56f6-98e8-77234209cac6.html

I can’t find the articles but there is also a korean rail car company and a korean household goods company (don’t know what that means, maybe spoons and blenders and walmart crap) that are setting up deals there to manufacture. The closed base area has freight access to LA, OC and SD, plus a cargo airport and is in some foriegn enterprise zone for taxes. I don’t know what it all means other than dirt cheap rentals and bunch of jobs for renter type demographics.

I want to add a grain of salt, the one that has kept me from the lower end neighborhoods and high density rentals. The lowest end jobs are the ones getting beat up the most, the welfare benefits are being reduced and illegal aliens are moving away and self deporting. This means less low end renters, at least it’s a fair argument and one that has me shying away from what are some good numbers.

The low end SD areas, you gotta ask someone else, but they are places that may suffer a similar fate. As a community, it’s not the worst thing in the world to have your poorest pack up in search of greener pastures, but as a landlord, it would suck because they are pretty much the only people that will live there.

I also keep reading stories regarding certain schools and districts that serve primarily spanish speaking students are losing enrollment, it’s a more transient demographic than others, I’m afraid of being left holding the bag if the shift increases.

[temeculaguy]

Vegas scares me because I don’t know enough about it and it’s problems seem too large, too much based on tourism.

The I/E is tricky, gotta be picky with regards to communities. There are some opportunities appearing, probably the hardest hit areas are those around March AFB, it never recovered from the base closing or the last downturn. I’ve never actually been there because it’s an armpit and I have no reason to go there but there have been some developments lately that will cause a demand for rentals.

http://nctimes.com/news/local/swcounty/article_889d6fee-4ae3-56f6-98e8-77234209cac6.html

I can’t find the articles but there is also a korean rail car company and a korean household goods company (don’t know what that means, maybe spoons and blenders and walmart crap) that are setting up deals there to manufacture. The closed base area has freight access to LA, OC and SD, plus a cargo airport and is in some foriegn enterprise zone for taxes. I don’t know what it all means other than dirt cheap rentals and bunch of jobs for renter type demographics.

I want to add a grain of salt, the one that has kept me from the lower end neighborhoods and high density rentals. The lowest end jobs are the ones getting beat up the most, the welfare benefits are being reduced and illegal aliens are moving away and self deporting. This means less low end renters, at least it’s a fair argument and one that has me shying away from what are some good numbers.

The low end SD areas, you gotta ask someone else, but they are places that may suffer a similar fate. As a community, it’s not the worst thing in the world to have your poorest pack up in search of greener pastures, but as a landlord, it would suck because they are pretty much the only people that will live there.

I also keep reading stories regarding certain schools and districts that serve primarily spanish speaking students are losing enrollment, it’s a more transient demographic than others, I’m afraid of being left holding the bag if the shift increases.

[temeculaguy]

Vegas scares me because I don’t know enough about it and it’s problems seem too large, too much based on tourism.

The I/E is tricky, gotta be picky with regards to communities. There are some opportunities appearing, probably the hardest hit areas are those around March AFB, it never recovered from the base closing or the last downturn. I’ve never actually been there because it’s an armpit and I have no reason to go there but there have been some developments lately that will cause a demand for rentals.

http://nctimes.com/news/local/swcounty/article_889d6fee-4ae3-56f6-98e8-77234209cac6.html

I can’t find the articles but there is also a korean rail car company and a korean household goods company (don’t know what that means, maybe spoons and blenders and walmart crap) that are setting up deals there to manufacture. The closed base area has freight access to LA, OC and SD, plus a cargo airport and is in some foriegn enterprise zone for taxes. I don’t know what it all means other than dirt cheap rentals and bunch of jobs for renter type demographics.

I want to add a grain of salt, the one that has kept me from the lower end neighborhoods and high density rentals. The lowest end jobs are the ones getting beat up the most, the welfare benefits are being reduced and illegal aliens are moving away and self deporting. This means less low end renters, at least it’s a fair argument and one that has me shying away from what are some good numbers.

The low end SD areas, you gotta ask someone else, but they are places that may suffer a similar fate. As a community, it’s not the worst thing in the world to have your poorest pack up in search of greener pastures, but as a landlord, it would suck because they are pretty much the only people that will live there.

I also keep reading stories regarding certain schools and districts that serve primarily spanish speaking students are losing enrollment, it’s a more transient demographic than others, I’m afraid of being left holding the bag if the shift increases.

[EconProf]

If you believe, as I do, that the two reasons to buy rental property are cash flow and appreciation, then I’d suggest anywhere but California. That assumes that you are concentrating on the very long run and that demographic trends are the best predictors of real estate profitability.
A close look at CA’s future reveals so many reasons why we have doomed ourselves to a bleak economic future relative to other states. The populist Sacramento politicians are driving businesses and the middle classes away with mindless regulation and job-killing laws. Income taxes on the richest 1% of our population now account for 50% of personal income tax revenues. Why should these few people (aka employers) stay in CA?
Who is replacing them demographically? One hint comes from the recent revelation that CA has 30% of the nation’s welfare rolls, but only about 11% of the population.
We’ll soon get soaring utility bills as a result of the recently-passed mandate for 33% of our energy to be from renewable resources by 2020 (AB 32). Look for our electricity rates to be twice that of neighboring states, and very soon, since this is a breathtakingly expensive leap in such a short time.
Studies show interstate mobility actually slows during economic downturns, so there is a pent-up demand currently of people who would like to move but can’t. With any kind of return to normalcy nationwide, Californians seeking a better long-terms future will have many other states to chose from.

[EconProf]

If you believe, as I do, that the two reasons to buy rental property are cash flow and appreciation, then I’d suggest anywhere but California. That assumes that you are concentrating on the very long run and that demographic trends are the best predictors of real estate profitability.
A close look at CA’s future reveals so many reasons why we have doomed ourselves to a bleak economic future relative to other states. The populist Sacramento politicians are driving businesses and the middle classes away with mindless regulation and job-killing laws. Income taxes on the richest 1% of our population now account for 50% of personal income tax revenues. Why should these few people (aka employers) stay in CA?
Who is replacing them demographically? One hint comes from the recent revelation that CA has 30% of the nation’s welfare rolls, but only about 11% of the population.
We’ll soon get soaring utility bills as a result of the recently-passed mandate for 33% of our energy to be from renewable resources by 2020 (AB 32). Look for our electricity rates to be twice that of neighboring states, and very soon, since this is a breathtakingly expensive leap in such a short time.
Studies show interstate mobility actually slows during economic downturns, so there is a pent-up demand currently of people who would like to move but can’t. With any kind of return to normalcy nationwide, Californians seeking a better long-terms future will have many other states to chose from.

[EconProf]

If you believe, as I do, that the two reasons to buy rental property are cash flow and appreciation, then I’d suggest anywhere but California. That assumes that you are concentrating on the very long run and that demographic trends are the best predictors of real estate profitability.
A close look at CA’s future reveals so many reasons why we have doomed ourselves to a bleak economic future relative to other states. The populist Sacramento politicians are driving businesses and the middle classes away with mindless regulation and job-killing laws. Income taxes on the richest 1% of our population now account for 50% of personal income tax revenues. Why should these few people (aka employers) stay in CA?
Who is replacing them demographically? One hint comes from the recent revelation that CA has 30% of the nation’s welfare rolls, but only about 11% of the population.
We’ll soon get soaring utility bills as a result of the recently-passed mandate for 33% of our energy to be from renewable resources by 2020 (AB 32). Look for our electricity rates to be twice that of neighboring states, and very soon, since this is a breathtakingly expensive leap in such a short time.
Studies show interstate mobility actually slows during economic downturns, so there is a pent-up demand currently of people who would like to move but can’t. With any kind of return to normalcy nationwide, Californians seeking a better long-terms future will have many other states to chose from.

[EconProf]

If you believe, as I do, that the two reasons to buy rental property are cash flow and appreciation, then I’d suggest anywhere but California. That assumes that you are concentrating on the very long run and that demographic trends are the best predictors of real estate profitability.
A close look at CA’s future reveals so many reasons why we have doomed ourselves to a bleak economic future relative to other states. The populist Sacramento politicians are driving businesses and the middle classes away with mindless regulation and job-killing laws. Income taxes on the richest 1% of our population now account for 50% of personal income tax revenues. Why should these few people (aka employers) stay in CA?
Who is replacing them demographically? One hint comes from the recent revelation that CA has 30% of the nation’s welfare rolls, but only about 11% of the population.
We’ll soon get soaring utility bills as a result of the recently-passed mandate for 33% of our energy to be from renewable resources by 2020 (AB 32). Look for our electricity rates to be twice that of neighboring states, and very soon, since this is a breathtakingly expensive leap in such a short time.
Studies show interstate mobility actually slows during economic downturns, so there is a pent-up demand currently of people who would like to move but can’t. With any kind of return to normalcy nationwide, Californians seeking a better long-terms future will have many other states to chose from.

[EconProf]

If you believe, as I do, that the two reasons to buy rental property are cash flow and appreciation, then I’d suggest anywhere but California. That assumes that you are concentrating on the very long run and that demographic trends are the best predictors of real estate profitability.
A close look at CA’s future reveals so many reasons why we have doomed ourselves to a bleak economic future relative to other states. The populist Sacramento politicians are driving businesses and the middle classes away with mindless regulation and job-killing laws. Income taxes on the richest 1% of our population now account for 50% of personal income tax revenues. Why should these few people (aka employers) stay in CA?
Who is replacing them demographically? One hint comes from the recent revelation that CA has 30% of the nation’s welfare rolls, but only about 11% of the population.
We’ll soon get soaring utility bills as a result of the recently-passed mandate for 33% of our energy to be from renewable resources by 2020 (AB 32). Look for our electricity rates to be twice that of neighboring states, and very soon, since this is a breathtakingly expensive leap in such a short time.
Studies show interstate mobility actually slows during economic downturns, so there is a pent-up demand currently of people who would like to move but can’t. With any kind of return to normalcy nationwide, Californians seeking a better long-terms future will have many other states to chose from.

[ctr70]

Thanks for the input Temeculaguy and Econprof. I have to study the rental market/vacancies in the parts of the Inland Empire and Vegas that I’m looking at. I’m not familar with the loss of the low end renters you are talking about. What about <$100k SFR's in Moreno Valley? Las Vegas right now you can buy for less than it costs to build houses. $80k for a newer blt sfr. Yes it seems to be a 100% tourist reliant area and that's a worry. But I think for the next 10-20-30+ years Las Vegas and Phoenix will continue to get a outflow of people priced out of California & baby boomers retiring from cold states. The same dynamics will happen again. San Diego for example, even after the bust, is STILL not affordable. If you are below $400k for a sfr you are STILL in a dumpy neighborhood with below average schools. Forget about the Bay Area, OC or LA. That will always drive families to look to neighboring states and to look at the inland empire. Phoenix is another area you can buy rental houses for less than it costs to build. For 1/2 or 1/3 the price they were selling at the peak. Both Phoenix and LV are much more business friendly than CA. I've been hearing for 20 years how the anti business climate and taxes of of CA is going to drive out all the people and businesses out. It still hasn't happend. The state has too much going for it with climate, scenery, closest U.S. proximity to the growing Asian powers, Silicon Valley, Hollywood, etc... The lower end SFR prices of San Diego have also stabilized if not risen in the past 12 mos. But the numbers are just not good anywhere in SD for anything. You are buying with the "hope" of future appreciation, which to me is a debatable reason to buy.

[ctr70]

Thanks for the input Temeculaguy and Econprof. I have to study the rental market/vacancies in the parts of the Inland Empire and Vegas that I’m looking at. I’m not familar with the loss of the low end renters you are talking about. What about <$100k SFR's in Moreno Valley? Las Vegas right now you can buy for less than it costs to build houses. $80k for a newer blt sfr. Yes it seems to be a 100% tourist reliant area and that's a worry. But I think for the next 10-20-30+ years Las Vegas and Phoenix will continue to get a outflow of people priced out of California & baby boomers retiring from cold states. The same dynamics will happen again. San Diego for example, even after the bust, is STILL not affordable. If you are below $400k for a sfr you are STILL in a dumpy neighborhood with below average schools. Forget about the Bay Area, OC or LA. That will always drive families to look to neighboring states and to look at the inland empire. Phoenix is another area you can buy rental houses for less than it costs to build. For 1/2 or 1/3 the price they were selling at the peak. Both Phoenix and LV are much more business friendly than CA. I've been hearing for 20 years how the anti business climate and taxes of of CA is going to drive out all the people and businesses out. It still hasn't happend. The state has too much going for it with climate, scenery, closest U.S. proximity to the growing Asian powers, Silicon Valley, Hollywood, etc... The lower end SFR prices of San Diego have also stabilized if not risen in the past 12 mos. But the numbers are just not good anywhere in SD for anything. You are buying with the "hope" of future appreciation, which to me is a debatable reason to buy.

[ctr70]

Thanks for the input Temeculaguy and Econprof. I have to study the rental market/vacancies in the parts of the Inland Empire and Vegas that I’m looking at. I’m not familar with the loss of the low end renters you are talking about. What about <$100k SFR's in Moreno Valley? Las Vegas right now you can buy for less than it costs to build houses. $80k for a newer blt sfr. Yes it seems to be a 100% tourist reliant area and that's a worry. But I think for the next 10-20-30+ years Las Vegas and Phoenix will continue to get a outflow of people priced out of California & baby boomers retiring from cold states. The same dynamics will happen again. San Diego for example, even after the bust, is STILL not affordable. If you are below $400k for a sfr you are STILL in a dumpy neighborhood with below average schools. Forget about the Bay Area, OC or LA. That will always drive families to look to neighboring states and to look at the inland empire. Phoenix is another area you can buy rental houses for less than it costs to build. For 1/2 or 1/3 the price they were selling at the peak. Both Phoenix and LV are much more business friendly than CA. I've been hearing for 20 years how the anti business climate and taxes of of CA is going to drive out all the people and businesses out. It still hasn't happend. The state has too much going for it with climate, scenery, closest U.S. proximity to the growing Asian powers, Silicon Valley, Hollywood, etc... The lower end SFR prices of San Diego have also stabilized if not risen in the past 12 mos. But the numbers are just not good anywhere in SD for anything. You are buying with the "hope" of future appreciation, which to me is a debatable reason to buy.

[ctr70]

Thanks for the input Temeculaguy and Econprof. I have to study the rental market/vacancies in the parts of the Inland Empire and Vegas that I’m looking at. I’m not familar with the loss of the low end renters you are talking about. What about <$100k SFR's in Moreno Valley? Las Vegas right now you can buy for less than it costs to build houses. $80k for a newer blt sfr. Yes it seems to be a 100% tourist reliant area and that's a worry. But I think for the next 10-20-30+ years Las Vegas and Phoenix will continue to get a outflow of people priced out of California & baby boomers retiring from cold states. The same dynamics will happen again. San Diego for example, even after the bust, is STILL not affordable. If you are below $400k for a sfr you are STILL in a dumpy neighborhood with below average schools. Forget about the Bay Area, OC or LA. That will always drive families to look to neighboring states and to look at the inland empire. Phoenix is another area you can buy rental houses for less than it costs to build. For 1/2 or 1/3 the price they were selling at the peak. Both Phoenix and LV are much more business friendly than CA. I've been hearing for 20 years how the anti business climate and taxes of of CA is going to drive out all the people and businesses out. It still hasn't happend. The state has too much going for it with climate, scenery, closest U.S. proximity to the growing Asian powers, Silicon Valley, Hollywood, etc... The lower end SFR prices of San Diego have also stabilized if not risen in the past 12 mos. But the numbers are just not good anywhere in SD for anything. You are buying with the "hope" of future appreciation, which to me is a debatable reason to buy.

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