Where is everyone buying (multi-family) - Posted by cgabhart

Posted by Heidi on June 07, 2003 at 22:12:56:

I’ve heard Victorville is due for an upswing in population due to some major jobs coming into the area. But this may take a few years to really hit.

What kind of rents are average in these areas? Vacancy rates, etc.

Where is everyone buying (multi-family) - Posted by cgabhart

Posted by cgabhart on May 30, 2003 at 24:57:11:

What areas are some of you purchasing apartments and why??? I am in san diego, Looking at some other areas???



Re: Where is everyone buying (multi-family) - Posted by Steve O

Posted by Steve O on May 30, 2003 at 17:24:15:

I sold out of Southern California last year and am purchasing in Phoenix and Tucson. As is the case in most locations, deals are not easy to come by. There are more distressed sellers here due to the rental market conditions.

Re: Where is everyone buying (multi-family) - Posted by cgabhart

Posted by cgabhart on May 30, 2003 at 18:19:42:

I am in the San Diego area and prices here are nuts here to. (as much as 90k+ for 1bds in C- neighborhoods). I still find things it is just hard (I guess it must be like that everywhere though). I just would really like to get income when I buy these darn things. You know they are called income property. Anyway I am sniffing around the phoenix, tucson area also the inland empire. Any thoughts on those areas.



Re: Where is everyone buying (multi-family) - Posted by DMH

Posted by DMH on September 11, 2003 at 18:59:35:

Curt, I too am in San Diego. Currently we are working on condo conversions because you are right, the prices are through the roof. $125K a door in City Heights! I bought on 44th Street 5 years ago for $30K a door! Nuts is right. The only thing these investors are banking on is appreciation, because cash flow ain’t gonna happen. Pull the demographics in East San Diego, you can’t charge $1000 bucks for a 2/1 they can’t afford it. Plus, when the market does correct itself, the service industry (which those tenants are in) suffer first. As far as Arizona goes…honestly, we had a 40 unit building at $39K a unit, with a TRUE yearly vacancy of…get this…25%! For the past 2 years, Brokers have been telling us that AZ is turing around, I don’t buy it. Inland Empire is even $100K in Riverside! Investors need to wake up and realize that when (not if…WHEN) the market does correct, these people are upside down and the reo market picks up. If I still owned property in San Diego…I’d sell for a ridiculous price, take the 15% tax hit, and sit on the sidelines and cherry pick in a year or two and buy back my property for less than i sold it for! Some decent wisdom.

Re: Where is everyone buying (multi-family) - Posted by Bill

Posted by Bill on May 30, 2003 at 19:02:47:

Look in Adelanto, Near Victorville, Ca. in the High Desert. You can buy units for 25K per door. Most of them need work, but the upside is very good.