What to Consider Before Buying
an Investment Property in San Diego



The housing market in San Diego is rebounding and interest rates are still low, meaning an investment property might make a lot of sense for you. Before you move forward with purchasing an investment property, take note of these considerations.

  4 Units Sold in Pacific Beach

Rental Property

If your property doesn’t generate rental income, you are counting on it increasing in value at a rate higher than inflation. Look at the market that you’re considering and if historically that holds true for homes in the area.

Time Shares

Time shares aren’t generally thought of as an investment, since re-sale can be difficult and — at times — at a lower price.

Real Estate

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Be sure to see the 3D Virtual Tour in the LINKS!

Largest Plan 1E - Immaculate 1 bedroom / 1 bath end-unit. Private unit with over 1,000 square feet of living space! Crown molding, granite counter tops / stainless steel appliances, private storage and full size in-unit laundry! Super clean unit. Desirable south facing unit – away from freeway noise. The Mills is well maintained with easy access to the 5, 94, downtown, Gas Lamp, Little Italy, and Balboa Park. Complex features workout facilities and historic building common area ideal for meetings and entertainment.

Unit 301 | RESIDENCE FEATURES | Offered at $365,000

• 9 feet ceiling
• Granite countertops
• European Style Cabinetry
• Stainless steel appliances
• Dual glaze glass windows

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As exciting as it is for you to be coming to San Diego to start your new job, the move does come with some hurdles to clear.

Along with arranging to move your worldly possessions, you’ll need a place to live. I’ve already offered to help you narrow the choices down to homes that will suit you and your lifestyle, and I hope you’ll take me up on that offer.

Having a “short list” of good homes to choose from is far less frustrating or time consuming than visiting dozens of homes that just won’t do.

But there’s a second part to the home search. Unless you have cash, you’ll need financing. And for some mortgage brokers, financing a home for a recently relocated employee is a problem. They can’t quite understand that when a company decides to relocate

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Are you considering the sale of your multifamily housing units? If so, now is the prime time. 

Investors are seeing opportunity in today's market conditions, and they want to move quickly. Because they know interest rates could suddenly jump, they want to acquire more properties while they can still lock into low monthly payments. 

On the other hand, investors with cash are eager to put it to work where it will earn more than they can get from a bank. While investors are willing to pay a premium for properties in prime condition, they aren't afraid to invest in distressed properties. 

So, whether your property is in top shape or in need of renovation, there are investors out there for your property- the hard part is finding them. That's where I

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11 Simple Steps You Can Do Yourself

If your credit scores are preventing you from getting the best interest rate on your mortgage loan or other types of loans – or even preventing you from getting credit - you can take some simple steps to bring them up.

#1 Pay down your debt

The first step toward increased credit scores is to pay down your debt. But sometimes that isn’t possible. What you CAN and should do immediately is stop using your cards for anything that isn’t vital to your well-being.

That means yes, buy a tank of gasoline to get to work if you have to. But no, don’t pull out the card and charge tickets to a concert or a $250 electronic toy. Don't use the card to go out to dinner when you could save $100 by cooking at home.

Use

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You’re certainly not alone in being wary of the current housing market. In fact, buyer fear is one of the forces keeping the market flat. And the news media feeds consumers’ fear with sensational headlines and stories expertly crafted to sell newspapers and attract viewers to their broadcasts and Web sites. It’s a media marketing fact: FEAR SELLS.

But if you’re fed up with living in limbo because you’re afraid to make a purchase decision, I think you’ll find this fact-filled letter and my follow-ups over the next few days to be a breath of fresh air. You see, I’ve decided to take the bull by the horns, so to speak, and broadcast the truth about our local real estate market, because …

When you buy or sell a home, you do so in your local market, not

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When purchasing a multifamily property, it is important to realize that some tenants may cost you more than they are worth. Maybe you have dealt with high maintenance tenants who have called you at midnight complaining that their faucet leaks or their oven wont turn on. As you know, these kind of tenants cause a lot of headache and waste your precious time and money. These are not the kind of tenants you want living in your investment property.

Unless you have previous investment property experience, those kind of incidents may have come as a nasty surprise. And by now, you may be tired of dealing with them. 

If this sounds like you, you are in luck. We at Andrew Arroyo have a great team of investor buyers who would be happy to take the burden of

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Remember those owner-occupants who wanted to sell, but were not in a distress situation? They used to dominate the market. But now they seem to be in the minority.

These sellers are probably a bit disappointed with today’s prices – after all, if they’d sold in 2006 or 2007 they’d have a lot more money in their pockets. So, you’ll probably find their homes priced at the top of today’s market.

The advantages of working with a non-distressed owner occupant are that they’ve probably kept the house in good condition, they can show you how all the systems work, and they’ll be required to fill out a property condition disclosure.

With the exception of some contrary souls, they’ll reply to your offer within the time you specified, and they’ll probably be

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Are you wondering why your multi-family property expired off the market unsold? It might have been the price, but it might have been because it wasn’t properly presented to the investors who are seeking income properties. 

Successfully selling real estate depends on four things:

• Price
• Presentation
• Marketing
• Negotiation

However, when dealing with income properties, the term “presentation” takes on a completely different meaning than when selling a single family home. And therein might lie the problem. 

Presenting a single family home involves cleaning-up, fixing-up, de-cluttering the space to allow prospective buyers to see themselves living there.

Presentation of an income property involves numbers. Successfully presenting an

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Have you heard about “flips?” Those are homes – usually in run-down condition - purchased by investors who do the fix-up and clean-up both inside and out and then put them back on the market at a higher price.

The idea is that the investor will make a profit for his or her labor and expense -  and the home buyer will have a move-in ready house. Many believe that flippers are doing a valuable service because they’re revitalizing neighborhoods and raising the value of surrounding homes.

So why are you hearing some negative press about flippers? Because some of them aren’t honest. Some of them use cosmetic improvements to cover up structural defects – such as rotted window frames, fire damage, or insect infestation.

But that doesn’t mean that all

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