There’s always something to howl about.

Helpless In San Diego — Or Any Place Like It — Get Outa Dodge Now

This is somewhat of a ‘simulcast’ with my own blog, as I just published a longer piece on the same subject for the second day in a row. I think it’s important.

This is for those investors living in areas like San Diego.

You know, median home price around half a million, and rents for the ‘average’ 2 bedroom rental $1,000-1,300 a month. I’d say if your median home price is over $400K your area probably qualifies.

In San Diego a boring but safely located duplex sells for $480-700K, and a fourplex goes for $750K-1Mil. In the next 10 years those ranges will have climbed, probably significantly. If over the next decade San Diego appreciates at just 3.5% yearly, the top of the range for duplexes will have reached just under $1Mil! And there’s not been a decade in the last four with an average of only 3.5% appreciation in San Diego. Tell me seriously — who is going to consider that a good investment? Unless they flew in from San Francisco they’re going to think the owner is over medicating.

So I see a paradox.

dodge city

Investors owning rental property in areas like San Diego will see them appreciate, only to find it very difficult locating that last fool who thinks it’s still a solid investment. They’ll get the growth they gambled on, but won’t be able to cash in. Impotent growth. (The name of my new band.):)

The solution?

Get outa Dodge now.

You’ll be happy to know there are a few regions in the country where you can buy property for way less, while also using low down payments. You’ll be back on the growth track, only now you’ll be in control of 2-4 times the property (in terms of value). This will turbo charge your capital growth rate magnificently.

Make use of a tax deferred exchange (1031) to move your equity to one of these lower priced growth areas. Do it now. You’re losing money staying in San Diego or any place like it. And your capital’s future isn’t bright.

Unless of course you think there will be a bull market for million dollar duplexes.