San Diego County’s multifamily real estate sector has rocketed in 2013, but does it still offer the best investment opportunities for cash flow investing?
According to a recent regional outlook report from the CCIM Institute, the San Diego multifamily real estate sector has seen a huge boom in transaction volume this year. Multifamily transaction volume in San Diego County reportedly hit $347 million in the first quarter of 2013. That’s up almost twice as much over the first quarter of last year and almost triple that of the same period in 2011.
With chasing yield and wealth preservation among the top priorities of global investors over the last couple of years, multifamily real estate has been a top target. However, while some new buildings are coming on the market to help satisfy demand, there are very few multifamily apartment building REOs to pick from.
Rising interest rates over the next couple of years could also dampen cap rates and settle transaction volume in this sector. In the interim, this could motivate more sellers to take advantage of the current market to cash out and reinvest elsewhere.
Still, there are many ways to find value or create profits for real estate investing in San Diego rentals. When it comes to apartment buildings, there is huge potential for increasing rents, attracting better tenants, re-positioning properties, and increasing value by improving infrastructure.
However, despite the attraction to multifamily real estate and the lower cost per door it can offer, many investing in the San Diego real estate market are finding better spreads and value among single family rentals.
So are you bullish on San Diego real estate and eager to expand your portfolio? Check out CT Homes, LLC’s line up of recently renovated, and tenanted or ready for move in properties in San Diego County.
