Posted by Heidi W on February 06, 2002 at 23:05:03:
I’m also in San Diego. I’ve been told that SD is not a great market for REHAB properties, because if a property is in a nice enough area, there are usually plenty of buyers willing to pay above the 30-40% mark-down usually required by a rehabber. One of my friends focuses on buying his rehab properties in Moreno Valley (I think that’s what he said - somewhere in the ‘inland empire’) and other points north of San Diego in Riverside County. He says, that because of it’s proximity to LA and Orange Counties - these areas should see the growth that has hit places like Temecula. There are plenty of old properties in these places and they are being surrounded by new housing developments.
I personally only look for Lease/Option deals in San Diego - although my eyes are always on the alert for the odd fixer, especially if it’s vacant.
Another problem with San Diego is the cost. Even if you could find a fixer it would probably be $200K or higher.
On the other hand - I know of a few people who are contractors and builders who apparently do some rebabbing in SD successfully. But I don’t know how much profit they make, or how they find their properties.
Good luck!