So many of you bought a rental home back when, and have owned it for quite some time now. You may have experienced a significant rise in value, even after the last few years. You’re still unhappy with its performance. Some of you are feeding it cash every month. Some are making a little cash flow, but feel like your capital is stuck in quicksand. Most of you have simply realized that owning investment property in San Diego is not what it’s been the last few decades.
• Does this sound like you?
Declining equity, decreased rental income, aging property demanding more and more of your attention, not to mention cash. It’s become crystal clear to you your initial plan hasn’t produced as you’d hoped. Losing 25-40% of your value is a stark reality. You’re not the Lone Ranger. In fact, San Diego isn’t either, as there are plenty of regions experiencing the same woes.
• Where this is all going.
Real estate investors with equity remaining in areas like San Diego either realize they need to move their equity elsewhere, or they don’t. Those who’ve already made that strategic move, have experienced what’s known as addition by subtraction. They’ve at least stopped the hemorrhaging of equity — a huge figure in the last couple years alone. Also, because they landed in a solid growth region, when markets return to a more or less normal state, capital will begin slowly growing once again. Those who insist on remaining in San Diego will find the downward trend hasn’t ended yet. The end game isn’t a game at all — it’s a postponed retirement and/or a meaningful shortfall of retirement income.
• What you need to know about rental home investments elsewhere
That’s a post by itself. But here are the main points you should take into consideration. It’s very likely your outa town property will either be new, or pretty dang young — a far cry from what you’re probably used to. Vacancy rates will be lower, rent up times generally faster, and there should be more demand for your ‘product’. Also, the bottom line remains — yer in a GROWTH REGION now, which is the point of investing in the first place. Furthermore, due to lower prices for the same or more income, it’s more likely than not you’ll have converted your equity to more property than you left behind. This often means a turbo charging of your capital growth rate in addition to your new region’s already superior growth atmosphere.
Tomorrow we’ll talk about what you need to get started. This isn’t the same real estate playing field you and I have seen in the last several decades. Meanwhile, call me and get a head start — 619 889-7100. Have a good one.
Related posts:
- San Diego Investment Property — The Year’s #1 Oxymoronic Phrase
- What Gettin’ Outa Dodge Means To A Real Live San Diego Real Estate Investor
- Brown and Brown Back In San Diego and Starring In Getting Outa Dodge
- San Diego Real Estate Investors Might As Well Wait For Their Cats To Bark
- San Diego Income Property Owners: Have Your Cake and Eat It Too
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