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  • Writer's pictureBlake Westfield

Top 5 Cities in San Diego That You Should Invest in the Real Estate

Updated: Dec 1, 2023

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Real estate investing can be a key option to grow your net worth. Many real estate investors choose prime areas within a specific geographical area to purchase properties for rent and to be flipped and resold. The San Diego real estate market continues to thrive, particularly as the tech industry continues to grow, bringing in new workers that add to the demand for rentals or properties to purchase.

If you are looking to grow your real estate investment business, hard money lenders in San Diego could be the right financing option for you. Here are the top five areas within San Diego where you can make a sound real estate investment, using private money lenders.

Del Mar Mesa Neighborhood

One of the first places to consider is Del Mar Mesa, a neighborhood found within San Diego, California. The population of the area is 20,415. The overall feel of the neighborhood is dense suburban, which is appealing to families. While a majority of homes are the primary residents of their owners, investing in rentals in this appealing neighborhood could mean attracting families that could end up being long-term renters.

If you are looking for homes to flip quickly, then the demand for this neighborhood could also make it an appealing investment opportunity.

Black Mountain Ranch

This area has a nice rate of return on your investment, especially for long-term rentals. Monthly traditional rental income is $3,519 and the houses are still relatively affordable for you to purchase and add to your portfolio.

Now this area might not be the best for some other investment strategies, such as Airbnb rentals or flips, simply because the neighborhood is geared toward families. Therefore, it is important to determine your investment strategy before you start identifying properties to purchase.

Pacific Beach – Short Term Rentals

If you are looking to invest in short-term rentals, which appeals to the Airbnb crowd or people vacationing in the San Diego area, then this neighborhood could be the right fit. It offers a variety of entertaining options for these short-term renters, plus restaurants and shopping. The monthly rental income could be close to $5,000. However, the price for these properties is typically over $1 million.

Other neighborhoods, such as Hillcrest, offer less expensive properties that still provide a reasonable short-term rental rate. Still, it is important to note that the legality of Airbnb rentals or short-term rentals has been called into question in many cities and states. In San Diego, the City Council repealed the short-term rental regulations that were scheduled to take effect in July 2019. Therefore, in San Diego at least, this investment strategy is still a viable option.

Point Loma – Rising Star

This particular neighborhood is known for its views of the city and harbor. While it was once a sleepy fishing village, today it is a community with a focus on food. Restaurants abound, but there is also plenty of urban shopping on the waterfront. Liberty Station is one such urban shopping experience, part of the redeveloped Naval Training Center. Another part of the development is the Liberty Public Market, where individuals can enjoy both food and the arts, including galleries, dance companies, and museums.

Investing in this neighborhood means that your property is part of a neighborhood that continues to increase in value and popularity. Long-term rentals in this area can be a quality investment.

South Park – Unique Community

What really makes this neighborhood unique is that it provides a unique culture close to downtown San Diego. Located between Golden Hill and North Park, the area is known for supporting local businesses, including those who offer handmade crafts and products. There are also craft breweries and ethnic restaurants, as well local boutiques.

This neighborhood is also poised for growth, so it makes a viable investment option, particularly for investors looking to hold properties for a longer period of time as rentals. Flips in these neighborhoods could also bring a good rate of return, but it is important to know the market.

All of these areas in San Diego can provide investment options, depending on your investment strategy. Still, before you can start to invest in real estate, you need to foster a relationship for financing your purchases. Working with a hard money lender in San Diego can provide the right relationship for both purchasing, repairing, and flipping properties. They can even help you to purchase properties and make improvements, before refinancing them to hold as long-term rentals.

Contact us today to discuss your real estate investment strategy and how we can assist in your financing needs.

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