Case Study – Deal Segment
For this deal segment, we’re breaking down how investors should properly comp rural Lakeside properties versus suburban areas elsewhere in San Diego, the common difficulties they may encounter such as smaller buyer pools, longer days on market, appraisal sensitivity, and insurance variability and how to combat those risks by underwriting conservatively, expanding comp search timelines when necessary, verifying location-specific costs and building stronger margins into the purchase price. In Lakeside, one of the biggest mistakes investors make is comping rural properties against suburban ones, which can completely distort the numbers. Lakeside has two very different buyer pools. Suburban areas with smaller lots, tract-style homes, sidewalks, updated infrastructure, and proximity to schools and retail typically sell at a higher price per square foot and move faster because the buyer pool is larger and financing is easier. In contrast, semi-rural properties with larger lots, hillside terrain, limited infrastructure, fire zone exposure, and a more remote feel trade at a lower price per square foot and often have longer days on market. When investors compare large-acre rural properties to clean suburban tract homes nearby, they can inflate their ARV by $50,000–$150,000 without realizing it. A well-structured deal in Lakeside requires comping similar lot sizes, road access, topography, condition, density, and overall buyer appeal. Even within East County San Diego, micro-market differences directly affect value and liquidity. Post your questions or answers below and anything you have to say about this topic and we will open it up for discussion friday on the show!