Many first-time homebuyers are looking to purchase homes, but they’re finding that prices are just too high for them. I’d both agree and disagree with their assessments; it all depends on what you’re looking at. Today I’ll share three great ways to help you build your portfolio and wealth here in San Diego:

1. Condos. In today’s market, condos are probably the most underrated asset class. Over the last 12 to 18 months, so many people have shifted their focus to single-family homes that the condo market has softened and people are getting deals. Post pandemic, we’ll likely see the condo market come back strong as people use them for second homes and other purposes. I’ve seen a ton of clients gain lots of equity from condos, and it’s substantially easier to get into that market than the detached housing market these days.

2. “House hack” by renting out bought property. House hacking is where you purchase a large or multi-unit property and rent it out to tenants. The rent you receive can offset the cost of the property. Suppose you had a two-unit property in a desirable location where you couldn’t normally qualify for two units at $750,000. By purchasing a two-unit property there, you can use the rent generated to offset the property’s expenses, so it might feel like you’re only buying a $500,000 property. This is useful for those who want to live with another person.

3. Buy real estate with someone. If you’re looking to start your rental portfolio, try buying a piece of property with a partner. Many young people don’t think of real estate as a great partnership opportunity, but it can be. With the right agreements in place and the right vehicles to own real estate, there are easy, effective ways for people to buy real estate with a partner.