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San Diego Investors – Is now the time to move up to Multifamily Property?

So, you own a rental property and it’s doing just fine.  Nice tenants, not a lot of expenses, and the rent shows up on time.  Why would you want to do anything different.  If you’ve owned the property for a while and you’ve got equity in the property, then now might be the right time to investigate moving up to units.

Of course, there are advantages and disadvantages to owning both types of property, but the right move can increase your cash flow, reduce your risk, and create a long-term investment providing income far into the future.  When prices were high it was difficult for investors to make the move from single family homes to multi-unit properties.  With prices down and still on the decline, 2011-2012 may be the sweet spot for those of you that want to move up.

Take a look at the chart below – It shows the current trend in asking prices for San Diego multifamily properties.

Multifamily Property Asking Price Index Trends

Current San Diego market trends data indicates an increase of +2.1% in the median asking price per unit for Multifamily properties compared to the prior 3 months, with a decrease of -9.1% compared to last year’s prices. County-wide, asking prices for Multifamily properties are -0.2% lower at $135,020 per unit compared to the current median price of $140,674 per unit for Multifamily properties in San Diego, CA.

The combination of historically low interest rates, lower property values, and an increase in San Diego rents are all part of the reason that we are seeing more interest in the multi-unit buildings.    If you have questions about the multi-family market in San Diego, please don’t hesitate to give me a call or drop me an email.  I’ll put you together with a team of brokers and lenders who can make this investment strategy a reality.



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