Investment property…Coastal vs. Escondido

[sdsurfer]

Hello all,

I’ve been working hard and saving and am looking to do some investing in local housing. I’m currently working with my lender to establish exactly what I can qualify for, but wanted to see if anyone might care to share their insight on the best option.

Say I can afford to finance 400K. I notice that you can get a 3/2 in Escondido for around 190-200k. I actually live in Encinitas and noticed a couple single family homes that you could get for around 380k or so around here.

Would you recommend buying 2 homes in Escondido or 1 home in Encinitas?

My gut tells me Escondido will certainly go down a bit more, but I’m thinking long term and feel like they would probably rent for 1600 or so each. Of course Encinitas is more desireable, but not necessarily in the 380k range. I’ve done a bit of research and it seems that home would probably rent for around 2600, which is less than the two Escondido homes with roughly the same amount financed. I’ve also thought about inland empire or a couple condos in La Costa, but feel like single family homes closer to home are a better option when thinking long term.

I appreciate any insight you might care to share to help me make the best decision.

Thank you!

[sdrealtor]

Broadly speaking:

Buying low end properties inland should generate higher cash flow but require more managment time/expenses.

Buying higher end coastal properties should generate higher appreciation and lower managment time/expenses.

[sdrealtor]

Broadly speaking:

Buying low end properties inland should generate higher cash flow but require more managment time/expenses.

Buying higher end coastal properties should generate higher appreciation and lower managment time/expenses.

[sdrealtor]

Broadly speaking:

Buying low end properties inland should generate higher cash flow but require more managment time/expenses.

Buying higher end coastal properties should generate higher appreciation and lower managment time/expenses.

[sdrealtor]

Broadly speaking:

Buying low end properties inland should generate higher cash flow but require more managment time/expenses.

Buying higher end coastal properties should generate higher appreciation and lower managment time/expenses.

[sdrealtor]

Broadly speaking:

Buying low end properties inland should generate higher cash flow but require more managment time/expenses.

Buying higher end coastal properties should generate higher appreciation and lower managment time/expenses.

[sdsurfer]

Much appreciated and I was thinking along those lines myself. Since I’m not expecting a lot of appreciation right away that would lead to inland being better short term, but then the coastal stuff would have a better long term benefit because they are making anymore land by the beach and when the appreciation kicks in, which I know it will eventually, I’d be glad I went coastal. I’m also on the fence regarding self management if it was coastal and if I went esco I would definitely get a management company.

Do you mind me asking what you would do?

[sdsurfer]

Much appreciated and I was thinking along those lines myself. Since I’m not expecting a lot of appreciation right away that would lead to inland being better short term, but then the coastal stuff would have a better long term benefit because they are making anymore land by the beach and when the appreciation kicks in, which I know it will eventually, I’d be glad I went coastal. I’m also on the fence regarding self management if it was coastal and if I went esco I would definitely get a management company.

Do you mind me asking what you would do?

[sdsurfer]

Much appreciated and I was thinking along those lines myself. Since I’m not expecting a lot of appreciation right away that would lead to inland being better short term, but then the coastal stuff would have a better long term benefit because they are making anymore land by the beach and when the appreciation kicks in, which I know it will eventually, I’d be glad I went coastal. I’m also on the fence regarding self management if it was coastal and if I went esco I would definitely get a management company.

Do you mind me asking what you would do?

[sdsurfer]

Much appreciated and I was thinking along those lines myself. Since I’m not expecting a lot of appreciation right away that would lead to inland being better short term, but then the coastal stuff would have a better long term benefit because they are making anymore land by the beach and when the appreciation kicks in, which I know it will eventually, I’d be glad I went coastal. I’m also on the fence regarding self management if it was coastal and if I went esco I would definitely get a management company.

Do you mind me asking what you would do?

[sdsurfer]

Much appreciated and I was thinking along those lines myself. Since I’m not expecting a lot of appreciation right away that would lead to inland being better short term, but then the coastal stuff would have a better long term benefit because they are making anymore land by the beach and when the appreciation kicks in, which I know it will eventually, I’d be glad I went coastal. I’m also on the fence regarding self management if it was coastal and if I went esco I would definitely get a management company.

Do you mind me asking what you would do?

[bearishgurl]

sdsurfer, I’m not sdr and am not familiar with North County on a street by street basis. You are on the right track wanting to invest in SFR’s as opposed to condos/PUD’s (with the HOA encumbrance).

If I was going to buy investment properties in the two locales you are proposing here, I would either by one or two larger houses that needed cosmetic work in Esco or one med-smaller house in a coastal area that needed cosmetic or even substantial work and fix up/repair the properties before renting them out.

$380K is a LOT to pay for a rental property given the (possible) vacancy factor of 2-6 weeks per year (in a coastal area). Putting 20% down, you would have to fetch $2200 – $2500 mo rent and manage yourself to make it worth your while (break even or a little extra for “slush fund”). I think it would be hard to do this consistently unless your property was at least 1500 sf with a garage, preferably a two-car garage and walking or biking distance to the beach.

Are any other Piggs more familiar with NCC rental income on a $380K house??

[bearishgurl]

sdsurfer, I’m not sdr and am not familiar with North County on a street by street basis. You are on the right track wanting to invest in SFR’s as opposed to condos/PUD’s (with the HOA encumbrance).

If I was going to buy investment properties in the two locales you are proposing here, I would either by one or two larger houses that needed cosmetic work in Esco or one med-smaller house in a coastal area that needed cosmetic or even substantial work and fix up/repair the properties before renting them out.

$380K is a LOT to pay for a rental property given the (possible) vacancy factor of 2-6 weeks per year (in a coastal area). Putting 20% down, you would have to fetch $2200 – $2500 mo rent and manage yourself to make it worth your while (break even or a little extra for “slush fund”). I think it would be hard to do this consistently unless your property was at least 1500 sf with a garage, preferably a two-car garage and walking or biking distance to the beach.

Are any other Piggs more familiar with NCC rental income on a $380K house??

[bearishgurl]

sdsurfer, I’m not sdr and am not familiar with North County on a street by street basis. You are on the right track wanting to invest in SFR’s as opposed to condos/PUD’s (with the HOA encumbrance).

If I was going to buy investment properties in the two locales you are proposing here, I would either by one or two larger houses that needed cosmetic work in Esco or one med-smaller house in a coastal area that needed cosmetic or even substantial work and fix up/repair the properties before renting them out.

$380K is a LOT to pay for a rental property given the (possible) vacancy factor of 2-6 weeks per year (in a coastal area). Putting 20% down, you would have to fetch $2200 – $2500 mo rent and manage yourself to make it worth your while (break even or a little extra for “slush fund”). I think it would be hard to do this consistently unless your property was at least 1500 sf with a garage, preferably a two-car garage and walking or biking distance to the beach.

Are any other Piggs more familiar with NCC rental income on a $380K house??

[bearishgurl]

sdsurfer, I’m not sdr and am not familiar with North County on a street by street basis. You are on the right track wanting to invest in SFR’s as opposed to condos/PUD’s (with the HOA encumbrance).

If I was going to buy investment properties in the two locales you are proposing here, I would either by one or two larger houses that needed cosmetic work in Esco or one med-smaller house in a coastal area that needed cosmetic or even substantial work and fix up/repair the properties before renting them out.

$380K is a LOT to pay for a rental property given the (possible) vacancy factor of 2-6 weeks per year (in a coastal area). Putting 20% down, you would have to fetch $2200 – $2500 mo rent and manage yourself to make it worth your while (break even or a little extra for “slush fund”). I think it would be hard to do this consistently unless your property was at least 1500 sf with a garage, preferably a two-car garage and walking or biking distance to the beach.

Are any other Piggs more familiar with NCC rental income on a $380K house??

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