Is National City a good place to buy near Naval Base San Diego?

National City sits directly north of the 32nd Street base, between it and downtown San Diego, and it has been a Navy town since the base was. It is the smallest and oldest of the South Bay cities, and the housing reflects it: modest single-family homes from the 1940s through the 1970s, a large stock of two-, three- and four-unit properties, and a scattering of condos and newer infill. The price band is the lowest on the bay side of the county, and the commute to the pier is the shortest.

Who lives here and why

The buyers are junior and mid-grade sailors who want to be minutes from the ship, dual-military couples with one at 32nd Street and one downtown or at North Island, and buyers who want a multi-unit property: live in one unit, rent the others, let the tenants carry the loan. That last group is the most interesting one, because National City has more two-to-four-unit stock than anywhere else within reach of the base, and VA finances up to four units as long as the veteran occupies one. It is a working city — industrial waterfront, the Mile of Cars, a lot of renters — and it is not where families go for the schools or the yard. People who buy here are buying the commute and the entry price.

The commute

Five to ten minutes to the 32nd Street gates from most of the city, on surface streets or a short hop on I-5. Downtown is ten minutes; the Coronado bridge to North Island is fifteen to twenty. The Naval Base San Diego guide covers the rest of the county, but for a 32nd Street sailor there is no shorter drive available.

Housing stock and what the appraiser sees

Almost everything here predates 1978, so the lead-based paint condition — any chipping, peeling or flaking paint has to be corrected before closing — shows up on most purchases. Unpermitted units and additions are common; the appraiser notes them, and an unpermitted second unit cannot be counted as a unit for rental-income purposes. Roofs, cast-iron plumbing, older electrical panels and crawlspace moisture on the 1940s–1960s stock are the other Minimum Property Requirement items, and termite clearance is standard practice on California VA purchases. The appraisal page covers how conditions get negotiated; on former rentals here, an inspection earns its fee. Condo projects have to be VA-approved before a unit can close — the condo answer covers the check. On a two-to-four-unit purchase the appraisal includes a rent schedule, and lenders count a portion of the rent after a vacancy factor, often with a landlord-experience or reserves overlay; the duplex answer covers the mechanics.

The loan angle

National City is the South Bay market where a first-use, full-entitlement VA loan reaches the most: no down payment, no loan limit, and prices that 32nd Street BAH carries with room — the BAH-to-payment calculator shows the number. A multi-unit purchase is a larger loan than a house, and the rental income from the other units helps qualify. A sailor with a VA loan open at a prior homeport is in the second-tier calculation, and at National City prices it usually works without a down payment. At the next PCS, a multi-unit property here is one of the better keep-as-a-rental holds in the county; the renting-out page covers that decision. California's programs are on the California benefits page.

Next

• See BAH for Naval Base San Diego →
• Compare nearby neighborhoods →

Around Naval Base San Diego

• Buying Near Naval Base San Diego and Coronado: The San Diego VA Loan Guide
• California Veteran Home Buying Benefits: CalVet and the VA Loan
• Eastlake and Otay Ranch
• Imperial Beach
• Jamul
• La Mesa
• La Presa
• Lakeside and Alpine
• Lemon Grove and Spring Valley
• Point Loma and Ocean Beach
• San Carlos
• Santee and El Cajon
• The PCS Home Buying Guide