Buying beach bungalow in San Diego for Winters

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
User avatar
TimeRunner
Posts: 1113
Joined: Sat Dec 29, 2012 9:23 pm

Re: Buying beach bungalow in San Diego for Winters

Post by TimeRunner » Sun Jul 16, 2017 5:23 pm

Bfwolf wrote:Downside is that I'm in a college kid's apartment. Probably kind of crappy and how many of them live alone to start with? And then I've got to repeat the process every year....
Recreational weed will become retail in January, 2018, so you should have plenty of neighbors to get high with.

"Dood, which way's the beach?" :mrgreen:
One cannot enlighten the unconscious. | Endurance athletes are the Bogleheads of sports. | "I like people - I just don't want to be around 'em." - Russell Gordy

User avatar
gunn_show
Posts: 1285
Joined: Wed Jun 06, 2007 3:02 pm

Re: Buying beach bungalow in San Diego for Winters

Post by gunn_show » Mon Jul 17, 2017 11:25 am

Carefreeap wrote:I'm a UC kid but went to Clairemont HS because UC High didn't exist. :wink:

Just closed my La Jolla Shores Condo for about $700k. You can find a 1br condo in the general UTC area (think off of La Jolla Village Dr.) for around $500k. The biggest challenge is going to be finding an HOA that allows short term rentals that you'd actually like to stay in. There are A LOT of college students in the area.
.
a/ Clairemont HS grad here too ;) the home of Fast Times...

b/ while I think UTC would be a cool central location for a single dude, at a reasonably affordable price (still tough for $500k but probably find 1-2br condo for that), I don't see that as a high-traffic highly-desired Airbnb type rental area. "Living among- and next-to UCSD students year round" is probably not high on the summer rental search parameter list for visitors. Not saying it wouldn't rent at all, but that is near a college and a huge mall, and not "close" to the beach in terms of any type of walking or bike riding, you still have to drive a ways into La Jolla, or up/down the freeway to PB or Mission or Carlsbad. Meaning the beach bungalow dream idea is dead, although given OP's budget, I think that dream is dead period, at least if he is sticking to San Diego. So in that vein UTC would be a decent compromise, but I would be hard pressed to think he would even get close to covering the carrying cost with Airbnb. You'd have to really get deep into a biggerpockets spreadsheet to determine that, and look at Airbnb rental numbers for that specific area.

If you can be patient and try to wait out the RE market for the next dip (similar response to other recent threads about buying $1.2m homes in SF) I think you could probably get a 1-2br condo in PB near your target price when crap hits the fan and some young folks need to bail. That might be 1 year, might be 5 years, but you could be an Airbnb renter yourself during those years, while watching the local RE market for that dip and saving more money to pounce on a sweet deal closer to the "beach bungalow" idea you dream of, while increasing your location and Airbnb rentability. I recently did this with a condo in Mammoth Lakes (ski town 400mi to the north) and the waiting paid off in terms of price and location. Play the long game, not the short game.
"I love competition. And I want to win." R. Murdoch

Carefreeap
Posts: 1978
Joined: Tue Jan 13, 2015 7:36 pm
Location: SF Bay Area

Re: Buying beach bungalow in San Diego for Winters

Post by Carefreeap » Mon Jul 17, 2017 3:27 pm

gunn_show wrote:
Carefreeap wrote:I'm a UC kid but went to Clairemont HS because UC High didn't exist. :wink:

Just closed my La Jolla Shores Condo for about $700k. You can find a 1br condo in the general UTC area (think off of La Jolla Village Dr.) for around $500k. The biggest challenge is going to be finding an HOA that allows short term rentals that you'd actually like to stay in. There are A LOT of college students in the area.
.
a/ Clairemont HS grad here too ;) the home of Fast Times...

b/ while I think UTC would be a cool central location for a single dude, at a reasonably affordable price (still tough for $500k but probably find 1-2br condo for that), I don't see that as a high-traffic highly-desired Airbnb type rental area. "Living among- and next-to UCSD students year round" is probably not high on the summer rental search parameter list for visitors. Not saying it wouldn't rent at all, but that is near a college and a huge mall, and not "close" to the beach in terms of any type of walking or bike riding, you still have to drive a ways into La Jolla, or up/down the freeway to PB or Mission or Carlsbad. Meaning the beach bungalow dream idea is dead, although given OP's budget, I think that dream is dead period, at least if he is sticking to San Diego. So in that vein UTC would be a decent compromise, but I would be hard pressed to think he would even get close to covering the carrying cost with Airbnb. You'd have to really get deep into a biggerpockets spreadsheet to determine that, and look at Airbnb rental numbers for that specific area.

If you can be patient and try to wait out the RE market for the next dip (similar response to other recent threads about buying $1.2m homes in SF) I think you could probably get a 1-2br condo in PB near your target price when crap hits the fan and some young folks need to bail. That might be 1 year, might be 5 years, but you could be an Airbnb renter yourself during those years, while watching the local RE market for that dip and saving more money to pounce on a sweet deal closer to the "beach bungalow" idea you dream of, while increasing your location and Airbnb rentability. I recently did this with a condo in Mammoth Lakes (ski town 400mi to the north) and the waiting paid off in terms of price and location. Play the long game, not the short game.
Class of '79 :sharebeer

It's really not far, maybe 3 miles. Bikeable and the 30 bus takes you from UCSD to La Jolla Shores. You can even bring your bike on the bus if you don't want to tackle that hill by SIO.

I wasn't suggesting AirB&B with the 10 month rental but it could be something to explore. Between parents visiting UCSD students and all the medical facilities there's probably a market it for it. I think the major constraint is HOAs requiring minimum leases of 6 months or longer like my HOA did. Professional short term rental agents are going to want around 35% commission so if the OP has a mortgage I doubt the numbers will work out the way he wants.

My dream set up for my condo was to have a visiting UC professor stay for 23 months (August 1 through June 30) giving me a month at the beach to fix up and rent, and hang out. Never happened because of various reasons. But it wouldn't have been a bad plan if we were still living in AZ and making the Zonie trek to the beach. 8-)

J295
Posts: 1086
Joined: Sun Jan 01, 2012 11:40 pm

Re: Buying beach bungalow in San Diego for Winters

Post by J295 » Mon Jul 17, 2017 3:44 pm

OP ....

Lots of "constructive criticisms" of your preliminary plan ...... I don't have the magic answer for you, but I do want to encourage you to keep pursuing this ... you know what you'd like for lifestyle so see if you can make it happen ..... we are in a much different situation (retired) and the chance just came up to spend 3 months elsewhere .... so we are just leaving our home empty and renting a nice furnished place for 3 months (so easy and stress free not to have to worry about all the ownership hassles) ..... maybe you consider renting something for a year or two and maybe you'll be surprised about what falls into your lap for options in both Chicago and SD ... that seems to happen a lot for us .....

Keep exploring and best of luck.

User avatar
gunn_show
Posts: 1285
Joined: Wed Jun 06, 2007 3:02 pm

Re: Buying beach bungalow in San Diego for Winters

Post by gunn_show » Mon Jul 17, 2017 4:18 pm

Carefreeap wrote: Class of '79 :sharebeer

It's really not far, maybe 3 miles. Bikeable and the 30 bus takes you from UCSD to La Jolla Shores. You can even bring your bike on the bus if you don't want to tackle that hill by SIO.

I wasn't suggesting AirB&B with the 10 month rental but it could be something to explore. Between parents visiting UCSD students and all the medical facilities there's probably a market it for it. I think the major constraint is HOAs requiring minimum leases of 6 months or longer like my HOA did. Professional short term rental agents are going to want around 35% commission so if the OP has a mortgage I doubt the numbers will work out the way he wants.

My dream set up for my condo was to have a visiting UC professor stay for 23 months (August 1 through June 30) giving me a month at the beach to fix up and rent, and hang out. Never happened because of various reasons. But it wouldn't have been a bad plan if we were still living in AZ and making the Zonie trek to the beach. 8-)
Hah! Class of '97 :sharebeer

While I agree UTC is "not far" from La Jolla in terms of miles on paper ... at the same time it is. Especially during summer rush and tourist season. That certainly will never qualify for "beach bungalow" or anything even remotely related to it. And your standard Airbnb renter to San Diego (family or group of dudes/gals) is not likely to bike down to La Jolla, especially given the hills. Or take a bus. So it really disqualifies the condo from all the major selling points the OP is seemingly after. IMHO.

The rest of your comments, while valid and pertinent to your use case, are really too dreamy and reliant on too many factors to "go right" and that is not an ideal scenario for managing a rental property from 2500 miles away. Ideally something like this is conceived and built upon as many "dummy proof scenarios" as possible, and a condo in UTC is not it. You're praying enough people consider UTC viable as a beach pad when in reality it is not. Example of as dummy-proof scenario as you can get in SD: "my condo is 2 blocks to Pacific Beach / Mission Avenue" .. that sells

I revert to my initial post - if I were OP or a friend of OP pitching me this over a beer - I would spend the next couple summers renting Airbnb pads myself, in different beach locations of SD, for two reasons - get a better feel for which beach area you want to get a place at, and wait out the market so you can pounce at an opportune time. YMMV.
"I love competition. And I want to win." R. Murdoch

beagle1
Posts: 97
Joined: Sat Oct 02, 2010 3:09 pm

Have been in your situation (sort of)

Post by beagle1 » Mon Jul 17, 2017 7:11 pm

I sort of did a variation of what you are proposing. I lived in a colder climate and bought a condo in San Diego (on the Point Loma/Ocean Beach border. Luckily, bought during the downturn). Before buying, I rented short-term houses in PB, OB, Point Loma and Mission Hills at inexpensive rental rates. However, this was before AirBnB, and doubt those kinds of deals exist anymore.

Like you, I have work that allows me to be mobile. But now I'm a full time San Diego resident

During the winter, I would rent out my other home, which I owned, to visiting nurses or other short-term renters. In the summer, I would rent out my condo in San Diego. There are people coming out of the desert who are looking for a rental in San Diego in the summer, so there's that. So you could conceivably find a way to rent out your place, though with the crazy market as it is, it may not come close to covering expenses.

In our neighborhood, there are places that almost fit your parameters, like https://www.redfin.com/CA/San-Diego/495 ... me/6671211 and https://www.redfin.com/CA/San-Diego/440 ... me/5351579 . There are others even less expensive (smaller). Of course, the flight path impacts this neighborhood to a varying degree. But it is an option.

I will say that it was tougher emotionally to split my time, leaving different sets of friends behind each time. And eventually I found myself in a relationship, and needed to live in one place. For me, it was different, as I realized that SD was where I wanted to be full-time, and eventually made that commitment after splitting time for a few years.

There are taxes for your business, but on the business side all that means is that you'll likely pay is the $800 Franchise Board tax and nothing more than that. If you are incorporated, you may need to register as a "foreign corporation." It does create complications in splitting taxes across states unless you are in California for a short enough period (can't remember what triggers part-year residency).

So it's tough. I would lean toward renting, especially given the fact that we're at a peak in the market, and uncertainty for you on how things will work out. You may try it for a year or two, and decide it's not workable. I'd make sure this arrangement makes you happy first before committing to buy.

Good luck!

Post Reply