What Types of San Diego Homes are Best for Investors?
There are many different ways for real estate investors to buy homes in San Diego today, but the best deals may not be where most think when they get down to doing the real math. San Diego County auctions have long been a popular way for real estate investors to acquire local homes. Real estate auctions across the country might have been plagued by fraud by banks and have become too popular for their own good even since the last boom. Still, according to figures on the homes being auctioned off at the newest San Diego County auction there are properties being offered as much as 50% under value as well as parcels of land for building as low as $1,000. Of course how cheap they can really be snapped up will really depend on how fierce the bidding gets and investors need to watch out for liens and property condition or use restrictions. Together Fannie Mae and Freddie Mac collectively hold about 50% of the mortgages in the Golden State. While many of the San Diego homes they are secured by are being offered as short sales many are complaining that these institutions are becoming way to greedy and unrealistic when it comes to listing prices and are actually preferring to foreclose. In fact, recent San Diego home listings show some of these properties listed at as much as 30% above the highest nearby comparable homes. This might ultimately be good for taxpayers but shows that short sales and foreclosures are not always the best deal for California real estate investors. While they can offer discounts to drool over, buying distressed and abandoned homes that need major work is not always the best move for real estate investors or new home buyers. Fixing and flipping or taking years to craft your custom home can be great for some. However, for many it may be better to avoid the hassles of rehabbing themselves and finance an already recently remodeled home. Buyers may actually find a lot more value in some of these properties that are ready to move into or rent immediately and result in actually producing better net returns, as well as the benefit of not having to worry about repairs and dealing with contractors.
What types of homes are best for San Diego real estate investors?