San Diego Investor Update!

Well, it's getting downright interesting! As you recall, we stopped investing in San Diego some years ago and started buying properties out of state where the numbers made more sense. Now it's getting to be time to come back to California. While showing properties the other day, I saw many homes in the low $300s that were very tempting. When this old conservative investor is getting tempted, you can be sure that other investors are starting to think the same way!



Here's a house in a nice area of Vista, 4 bedrooms, 2 car garage, .2 acres, 1584 square feet. The price is $299,000! This property will rent for $1750 a month, which is starting to look real good to me. This is a positive cash flow with 20% down on an interest only loan, or a small negative on a 30 year fully amortized loan. Or how about asking the seller to pay a point to buy the 30 year fixed rate loan down so that it breaks even? As I said, it's getting exciting!

Purchase price $300,000.
20% down = $60,000.
1st trust deed $240,000 @ 5.75% interest only 7 yr fixed = $1150
Taxes = $300 a month.
Insurance = $50 a month.
Total for everything = $1500 a month.
Rent is $1750 a month.
$250 a month positive cash flow if you manage it yourself!
Or pay a property manager and still have $75 a month positive!

I haven't seen prices like these in 6 years! If you're at all interested in investing in San Diego, I would get ready to be in a position to buy. Then give me a call or send me an email and let me know what you're looking for. I'll be sending the best deals I come across to those investors who have contacted me. Happy investing!

Happy Birthday Jasper

Today we welcome into the world our first grandson, Jasper!

Big sister Grace and her new baby brother.

Grandma Crystal, Grace, and Jasper.

Dad Nate, the professional photographer. Get used to it, Jasper!

Proud Grandpa Dennis holds his grandson for the first time.

Jasper takes a break from all that posing.

Love from big sister Grace.

PMI Predicts Market Direction

An indicator you should know about is Private Mortgage Insurance's Risk Index, which measures the likelihood that home prices will be lower two years from now. The index measures the percent likelihood of a price decline and currently estimates that 13 of the nation's 50 largest metro areas now face a 50% or greater chance of lower prices - up from just 7 metro areas in the previous quarter.

These are the Metropolitan Statistical Areas with the highest probability of price delcines:

You can get the full report here:

http://www.pmi-us.com/media/pdf/products_services/eret/pmi_eret08v1s.pdf

Happy New Year

Ahh, the new year begins with another fantastic day in Southern California! It was 72 degrees today as we were taking down the Christmas tree, so we opened the doors and windows to let in the fresh air. I planted some Sugar Snap peas in my garden, and I started some lettuce seeds in flats. Since there is no frost here, the plants will be up in a few days. I picked a few red cherry tomatoes from last year's plants which are still producing, and some Romaine that I planted in November, and made a fresh salad to go with dinner.

In Oceanside, my son put on his work shorts and sprayed some wood preservative on a new fence that we built together over the last few days. My parents drove up to Pasadena to watch the Rose Bowl Parade in their short sleeves. And the day ended with one of our amazing firey sunsets. I snapped this shot a few hours ago from my backyard looking towards the Pacific Ocean.

Now for those of you who grew up in Southern California, none of what I said is a big deal. But if you are from someplace else, you can really appreciate what I'm saying. This is January 1st I'm talking about! Our quality of life here is like nowhere else, and if you are reading this and dream of moving here someday, I hope that you make that dream come true in 2008.