This week has been informative to say the least. I’ve heard from several (4) income property owners in markets much like San Diego, including one actually in my town. Though their situations varied a bit here and there, there was a common thread when it came to the reason they contacted me.
They all said one of two things — one of ‘em said both.
“As one of your posts challenged us to do, we looked all over our local market for something into which we could exchange our equity(s). It’s been ‘X’ months (fill in the blank) and there’s just nothing worth trading for.”
OR
“Your post askin’ us if we’d now buy the units we’ve owned for quite some time, even for what they’re worth after this market correction? No! As in, not in this or any other lifetime.”
As might be predicted, the San Diego-based investor said both. 
Wanna see exactly what I’m talkin’ about, here in San Diego? Wanna see how silly prices still are, even after losing 30-40% of their value? Go to my company’s website brownandbrowninc.com, click on ‘Search’ and look around in the 2-4 unit section. Do the numbers on a few of ‘em. If you’re curious cuz maybe you think you’ve found a good one, call me so I can tell you why it’s really not.
Compare prices and rents — particularly their relationship — with your market.
I especially recommend this to San Diego income property owners who still believe there are properties out there that would make sense to own.
Many, if not most are more than a little surprised to learn what they can accomplish with one tax deferred exchange. In one case, I may have found the perfect example of how a local real estate investor can ship their equity Outa Dodge — literally doubling the retirement income they would’ve had to live with if they opt for the status quo. They weren’t exactly chagrined at the prospect of not managing property ever again, either.
I’ll close with this observation.
One investor has a well located albeit ancient, smallish income property, owned just over a decade. The debt is roughly half, give or take, of current market value. Two of the duplexes I spotlighted last month — using just 20% down payments — would produce 75-100% of his current cash flow. And for the record? He manages them himself.
Take advantage and search the San Diego market for your kinda property, then compare it to some of the properties I’ve recently written about.
Once you’ve seen enough, and are ready to cry Uncle! — Gimme a call at 619 889-7100. Have a good one.
Related posts:
- Real Estate Investors — Is Your Addiction To Cash Flow Lowering Potential Retirement Income?
- Real Estate Investors Staying Local Endure Lousy Cash Flow – Worse Retirement
- San Diego Real Estate Investors — Being Dumb Like A Fox — Don’t Retard or Delay Retirement
- The Folly Of Missin’ The Same Bus Twice — Pay Attention Real Estate Investors
- Understanding Real Differences — Real Estate Investors Sometimes Gloss Over ‘Difference Makers’
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