Where Should I Invest in Real Estate?

San Diego CA Map

Many people who want to invest in real estate have one question in common; “where should I invest in real estate?” This is a very broad question to consider.

In order to fully understand the question, let’s narrow it down to two concepts. Let’s look at what type of real estate properties you should start investing in, and also where to start looking for your next real estate investment.

Finding the right place to invest

Investors usually have trouble sorting out where is the right place to invest. They spend lots of time researching and gathering all the data of places and doing comparative studies to check the pros and cons of a certain area. The reality is there is no such thing as right place to invest.

  1. Every location is a right location to invest – as long as you do it with the right timing and analysis. Don’t let a good deal scare you because it’s in a “bad” neighborhood. If the numbers work out, and you are aware of the market conditions for that particular area, you can make money on any piece of property in any community. Just make sure the numbers ensure your profit.
  2. Invest where people are buying – Do not spend much effort looking for an investment property  in a place where the real estate economy is struggling. If you find a good deal there, take it. It’s gotta be a home run. But spend 80% of your time looking for places which can offer you lots of possible deals. Search in areas where houses are selling fast, have the lowest days on market, and are good transitional (up-and-coming) areas. You can start looking for these places by simply driving around the San Diego communities with your local Realtor.

If you want to invest in the prestigious San Diego real estate, you can do it during any season and gain immediate equity & cash flow. Understand that it is not always boom or bust for San Diego real estate investing (because of the mild seasons), so make sure you implement all your profit making strategies continuously throughout the year.

It is important to bear in mind that the real estate market is a dynamic market and the goal of an investor also varies thru time. One specific location may not be healthy anymore to an investor as time goes by. Find the place which fits your goal for investing in today’s market (the last 90 days) and do the most you can from there.

Finding the right properties to invest in

There are many different real estate properties to start with in San Diego investing. How do you choose? There are condos, apartment, or single family houses where you can start investing in. Finding the right property depends mainly on your goals and abilities.

  • If you want quick cash flow, invest in an old Single Family House (SFR) house to flip.

There are many investment strategies for all different property types. But the easiest and most reliable property to invest in is the 3 bed, 2 bath Single Family Residence. This is by far the most desired property that buyers look for, thus the easiest to rent out or sell once rehabbing is complete.

As your investing career develops through time, your goals may also change. Start with SFR’s and move your way up the ladder of complexity as you gain more education about real estate investing and the markets you’re working in.

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About Robb Bailey

Robb Bailey is a real estate investor, entrepreneur and business consultant living in San Diego, California. Red Trolley Homes was started in 2009 and is run by Robb and his staff in Ocean Beach, investing in properties nation-wide. You can read more about Robb and his various businesses at RobbBailey.com.

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