There’s a pretty good deal on a 1br condo at Icon currently. The seller needs out and I’m confident I can get it at about 10-20% below the market comps. Icon is a four building community located right next to Petco Park and the new library. I’m guessing you can purchase the condo for under $300K and it would rent for about $1700-1900/mo. Paying cash at $300K achieves an ROI of 3% (assuming you get $1750/mo in rent, pay 5% in management fees and it’s vacant one month/year). Three percent isn’t great, but I think you’ll see more on the appreciation as East Village grows.
Icon is in construction defect litigation right now, which has lowered prices there – that coupled with the unusually high number of 1brs on the market there (6 currently) and the holidays, market times have grown. You won’t get rich buying this condo, but I’m pretty sure you’ll do well if you sit on it for 3-5 years.
If you have any questions about this downtown San Diego condo deal, or others, please let me know. Denny Oh 858-243-2092 d[email protected]