Buy-and-
hold.

Buy-and-hold is the simplest strategy on this page and one of the hardest to do well. You purchase a property, lease it to long-term tenants — usually on 12-month terms — and hold it for years.

Four things build your return: the monthly rent, the tenant paying down your mortgage, appreciation over time, and tax benefits like depreciation.

In San Diego, buy-and-hold is rarely a get-rich-quick story. It is a get-wealthy-slowly story — and the investors who do best here underwrite conservatively, buy where rental demand is durable, and hold through cycles.

Financing looks different for investors: expect a larger down payment than an owner-occupied purchase — often 20–25% — and a higher interest rate. DSCR loans, which qualify based on the property’s rental income rather than your personal income, are worth knowing about once you own a few doors.

California’s Tenant Protection Act caps annual rent increases on covered properties (currently 5% plus inflation, max 10%). Know whether a property is covered before you project future rents.

Rental demand in San Diego is durable near universities, job corridors like Sorrento Valley and UTC, military installations, and walkable neighborhoods — but verify achievable rents with actual leased comparables, not listing-site estimates.

Condos can work, but underwrite the full picture: HOA dues, rental caps buried in the CC&Rs (some buildings limit how many units can be rented), and the risk of special assessments.

Property tax runs about 1% of assessed value plus local assessments, and insurance, maintenance reserves, and vacancy allowances all come out of your cash flow before you see a dollar of profit.

Buy-and-hold rewards patience and punishes optimism. It fits investors with a long horizon, stable income, and the temperament to hold through a soft year without panic-selling.

It also fits investors who value what the strategy uniquely offers: leverage, tax benefits, and forced savings in an asset they control — in exchange for giving up liquidity.

• You are buying for the decade, not the year
• The numbers still work with conservative rent assumptions and a vacancy allowance built in
• You have cash reserves beyond the down payment — surprises are a matter of when, not if

1. Define the target. Cash flow now, appreciation later, or a blend — the answer changes what you buy and where.
2. Get pre-approved for an investment loan (or explore DSCR options) so you are shopping with a real budget, not a guess.
3. Choose the submarket deliberately. Verify demand with leased comps and days-on-market for rentals, not asking rents.
4. Underwrite conservatively. Market rent minus vacancy, management, maintenance, taxes, insurance, and HOA — then decide whether the return justifies the capital.
5. Inspect like a landlord. Roof, plumbing, electrical, water heater — everything a tenant will call you about at 11pm.
6. Decide: self-manage or hire out. Price both options honestly, including the value of your own time.
7. Close, place a quality tenant, and hold. Good screening is the highest-ROI activity in this strategy.