First thing Dad told me back in June of 1967 as we drove south down the 5 freeway towards San Diego, was the only real downside to livin’ there. He said, “The only thing I can’t stand about SD is figuring out where to go on vacation.” True enough. He moved here in 1962 and never left.
I love San Diego and can’t imagine livin’ anywhere else full time. But the investing side of Paradise has left the building, people. If you think paying $400-700,000 for a 30-50 year old duplex doesn’t make sense today, how’s it gonna make more sense if that duplex rises in value? It loses money today with a 30% down payment for Heaven’s sake.
I’ve had some pretty good conversations with SD income property owners recently, who admitted under their breath, they wouldn’t pay today’s prices, much less more. And there it is. It’s only gonna get worse, any way ya slice it. If prices go down here, it’s no good. If they rise, who’s gonna pay 40% down for the privilege of breakin’ even every month? The logic is as plain as day.
You think I liked having to leave San Diego, taking my clients elsewhere? I resisted it so much and for so long, I was a year late in execution. Please take a step back and objectively ask yourself this question:
Would you buy your San Diego investment property even at today’s low prices? I didn’t think so. I won’t tell anyone you said that though, promise. Let’s talk — isn’t it past time you executed a tax deferred (1031) exchange, and Got Outa Dodge? You bet it is.
Here are the Zombies with a tribute to San Diego income properties. 
Related posts:
- San Diego Real Estate Investors Try To Avoid Saying ‘What Was I Thinkin” 5 Years From Now
- How Can San Diego Real Estate Investors Improve Their Current Strategy?
- Real Estate Investors Love Fireworks Too — Where To Go In San Diego To See ‘Em
- San Diego Real Estate Investors — How’s That Income Property Workin’ For Ya So Far?
- San Diego Real Estate Investors — Some Reasons to Invest Out of State — Try Texas
About BawldGuy
I had to mute your video and pull up my iTunes recording of the same song. That audio was harsher than the plumber’s bill for an O’side quadplex mainline repair.
Off to Disneyland. I enjoy it and need the walking exercise. The 85 mile trip itself serves as a form of investor inoculation. The SFV, LA and OC urbanscape reminds me why there are better places to invest.
Loved yer audio description. Works fine on my ‘puter, but then I run a Mac.
‘Course it’s traveled two generations to get this far, so I’m just happy it survived in any form.
Keep up the exercise, btw.
That urbanscape can be more than a little depressing at times.
I must protest sir. I too have a real computer. In fact I am a Mac specialzing consultant in my day job. I don’t understand people who have so much time to waste that they adopt special needs hardware as a hobby.
Posting from the annual pass renewal line.
Crackin’ up. Thanks
Jeff,
“She’s Here! Send them our way! http://philadelphiarealestatehub.com/2008/08/18/yo-san-diego-real-estate-investors-shes-here/
Ryan — One of life’s little pleasures is arising Monday morning and laughin’ out loud with that first cup of the day still in your hand. Thanks for that.
One of Brown and Brown’s foundational moral precepts is that we don’t send clients to others, because we’ve promised them our personal involvement from Day 1 to retirement. They count on this being true.
We do, of course, refer clients to agents both here in San Diego and around the country, but only if we’re not qualified to handle what’s required. An example would be recently when we referred a client with a need to sell a home they’d bought (without our help or involvement) in another state. They obviously needed a local agent.
All that said, our interest in some of the regions we’ve entered was instigated by local agents much like you. We’re always open, as long as our research demonstrates real opportunity for our clients.
We don’t EVER just refer them to an agent in a far off region. We DO however, love it when guys like you tell us we might be missing out on something good.
We’ll be talkin’ soon, Ryan. Thanks for speakin’ up.