Is anyone here buying in san diego or california?

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Submitted by moneymaker on November 8, 2018 - 11:25am

I'll admit, was looking a while back (as a trade up) but right now with everything that's going on there are too many negatives for me. Could see moving out of state after retiring but will re-visit that at a later time. Seems to me even if looking for investment property it would be better to wait for the crash, then buy.

Submitted by Myriad on November 8, 2018 - 5:19pm.

Not really for investment property. Too expensive here compared to the rent/return/cap rate.
I'm looking a more diversified REITs or crowdfunded investment property in the rest of the US. I liked some of the investments on Realtyshares, but that site just closed down new investments.

Submitted by Escoguy on November 12, 2018 - 7:34pm.

I'm still looking but not aggressively.

I'm going to receive an inheritance in the next couple of years, likely sooner than later and was thinking about 1 or two more rentals.

I'm seeing a cap rate of 6.3% which still works for me but it's inland and relatively new. My wife says, why mess with it, we already have 6 and she thinks that's enough.

ROE with variable rate would be about 10.9%. With fixed rate 5.3%.
Decisions, decisions.

Submitted by gzz on December 4, 2018 - 9:13am.

Interesting Esco, sounds like the variable rate and 10.9% ROE is the way to go.

Worst case is rates go up in few years because we never get the recession everyone expects, but you'll have more equity and higher rents by then.

They've dropped 0.29% from their peak last month and are the lowest since mid-September.

The fundamentals that drove rates down are still here: lots of rich people who save rather than spend all over the world chasing too few low-risk investments.

Trump's tax cut mostly went to the wealthy, who barely increased their consumption and instead put their cuts into investment markets, prestige real estate, and increased loanable funds.

Submitted by flu on December 4, 2018 - 10:41am.

in the middle of a 1031 exchange ... Hopefully it goes through on both sides soon.

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