What about cracked slabs? “I saw a home I loved in West Clairemont, but there was a crack in the slab. Should I avoid buying a home with a cracked slab?” ***ANSWER: Some cracks are very serious and cost thousands, tens of thousands, or even hundreds of thousands to fix correctly. Other cracks are more

We’re beginners in the San Diego home buying game. Can you give us some tips on deciding how much to spend on our monthly mortgage payment?” ***ANSWER: I want you to come up with 2 monthly payment figures. They should include loan payment, taxes, insurance, and possible HOA fees, Mello-Roos fees, or mortgage insurance. Be

“Hi Gary. I have 24 apartments in City Heights. They’ve been a headache lately and I’d like to get out of them into something else. Is it true that you have to buy up to do a 1031 exchange?” ***ANSWER: Almost. While you do have to buy up to do a full deferral, just buying

Cap Rate vs. Gross Rent Multiplier “What’s the difference between a cap rate and the gross rent multiplier?” ***ANSWER: Cap rate is the opposite of a price/earnings ratio, used with stocks. Here are some random cap rates and GRMs in San Diego: CapGRM Area 415 Pacific Beach 513 North Park 5.312 El Cajon As you

Home Pricing Advice “Hi Gary. We’ll be selling our condo in La Jolla next month. We know the comps say it’s around 700K, but we’d like to shoot for 725-750K. We’re willing to hold out even if it takes several months to sell. How long should we expect it to be on the market?” ***ANSWER:

Discount Brokers “What’s this I see around San Diego about 1% and 2.5% real estate fees to sell a home. I know they’re discount brokers and don’t do very much, but how can they charge so little and stay in business?” ***ANSWER: Many of them don’t. There’s a real revolving door of these reduced service

Is using a Part-time San Diego Real EstateAgent a good Idea? “My husband and I will be buying a house in Scripps Ranch or University City area He wants his fishing buddy who does real estate on the side to represent us. I know that’s a bad idea, but can YOU tell him?” ***ANSWER: USING

“I’ve been interviewing agents to sell my mother’s home in Del Mar. After talking with five, I’ve come to the conclusion I really have no idea how to tell who I should hire. Help!” ***ANSWER: I’m going to tell you something you already know, but perhaps in all the confusion have forgotten. The best predictor

Grading Apartment Investments A,B,C, & D I’m looking into buying apartments and I’ve heard brokers talk about A, B, C, & D areas. I think I understand, but can you explain?” ***ANSWER: A, B, C, & D are subjective grades used to describe both location and property quality. San Diego Investor For location, here’s how

Appraisal Question: “Hey Gary. Question. What if when you’re buying a house the appraisal comes in low? Does the seller have to sell for that price?” ***ANSWER: Great question. It’s important to remember that a residential appraisal is really the appraiser’s opinion and may or may not be “correct.” If the appraisal comes in low,