CV. Chula Vista, not Carmel Valley

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Submitted by briansd1 on March 13, 2012 - 2:17pm

We've not talked about Chula Vista much on here before.

These townhouses are new and in HOAs so they won't need much maintenance. They are priced well ppsf, so they are affordable.

What do you guys think they'd rent for?

http://www.homepath.com/listingdetails.h...

http://www.homepath.com/listingdetails.h...

Submitted by davelj on March 13, 2012 - 2:28pm.

I'd guess $1850/month for the larger one, $1700/month for the smaller one. Might be able to get $50/month more for each. But that's in the ballpark.

Submitted by bearishgurl on March 13, 2012 - 3:21pm.

The first property in 91914 has a $219,900 asking price. Its tax bill is stated on Redfin as being $2,829. In fact, the current tax bill (based upon a $385K assessment) is $4,671.80. In addition, Redfin states it has $170 mo in HOA dues.

The second property in 91915 has a $215,900 asking price. Redfin does not state its current tax bill. No tax bill is shown on the assessor's website for this particular unit but three different comparable units in the same complex have current tax bills of $2630.02 (for a $157K assessed value), $3,018.32 (for a $202K assessed value) and $3,415.00 (for a $186K assessed value). All of these assessed values are lower than the current asking price of this unit. In addition, Redfin states it has $169 mo in HOA dues.

Monthly dues and real taxes would have to be factored in for investment purposes. The MR bonds in at least the first unit last for 40 years from the date the last unit in the CFD was sold.

The first unit (with a 2-car garage) should consistently rent for $1750. The second, smaller unit (with a carport) should rent for $1450 to $1500.

I don't know if they are good investments at the current asking prices. It depends on how much of a downpayment the investor uses, if the stated HOA dues are accurate (and won't rise soon) and how much the actual fixed MR obligations are on each of these properties, in addition to the ad valorem portion of the property tax bill.

Note: The lack of online tax bills does not bode well for the second complex. It is very possible that once a certain number of its units landed in the hands of FNMA, that they are either exempt from taxation during their period of "ownership" (being a quasi-govm't entity) or the tax bills are held in suspense until FNMA resells the properties.

Submitted by bearishgurl on March 13, 2012 - 3:24pm.

davelj wrote:
I'd guess $1850/month for the larger one, $1700/month for the smaller one. Might be able to get $50/month more for each. But that's in the ballpark.

Just saw this and I think your rent projections are a bit too high for these units, davelj. There is a lot of current vacancy down there and one can rent a 1500-1600 sf SFR in that area for about $1800-1900 mo.

Submitted by briansd1 on March 13, 2012 - 3:24pm.

BG, the tax amount will get reset to be based on the new purchase price. So that should not be a problem.

Submitted by bearishgurl on March 13, 2012 - 3:30pm.

briansd1 wrote:
BG, the tax amount will get reset to be based on the new purchase price. So that should not be a problem.

I fully understand this and that is why I posted the current assessed values. HOWEVER, the portion of the tax bill for CFDs will be a set amount, over and above whatever the property is assessed at.

I switched a couple of figures on the comparable tax bills of the smaller condo.

It should should read "...$3,018.32 (for a $186K assessed value) and $3,415.00 (for a $202K assessed value)."

Sorry for any confusion.

Submitted by davelj on March 13, 2012 - 5:28pm.

bearishgurl wrote:
davelj wrote:
I'd guess $1850/month for the larger one, $1700/month for the smaller one. Might be able to get $50/month more for each. But that's in the ballpark.

Just saw this and I think your rent projections are a bit too high for these units, davelj. There is a lot of current vacancy down there and one can rent a 1500-1600 sf SFR in that area for about $1800-1900 mo.

I'm not suggesting that Craigslist is the last word on rents, but if you go there you'll see plenty of comps that support my rents. Also, I have a friend that owns a 1325 sqft condo in CV that's inferior to both of those units (by a wide margin) that he rents out for $1450/month. I also follow the rents on three large complexes down near Tocayo, and 825 sqft 2/2 units are renting for $1250/month. But perhaps you know the various sub-markets better than I do - I only have a handful of datapoints; I'm no expert.

Submitted by briansd1 on March 14, 2012 - 10:06am.

Thanks guys for the answers. I'll continue to monitor Chula Vista.

Chula Vista seems to be the most affordable place in San Diego County if you want to get a newly built house/condo.

Submitted by recordsclerk on March 14, 2012 - 10:38am.

I have a town house in San Miguel Ranch. It's a 3bd 2 1/2ba, 2 car garage, rents for $1875. Very low maintenance due to newer construction. The high HOA+Taxes+Water+Trash put a huge dent in the ROI. We had another unit a couple years ago (91915) that we flipped, it also rented for $1850. So I think that's the going rate. If you are looking for low maintenance and decent return this would be a good fit. If you are looking for maximum ROI, there are far better choices out there.

Submitted by briansd1 on March 22, 2012 - 1:28pm.

$140/sf for new construction in Chula Vista.
I don't know much about Chula Vista.
Maybe a good investment?

http://www.homepath.com/listingdetails.h...

http://www.sdlookup.com/MLS-110034007-22...

http://maps.google.com/maps?q=2250+Treew...

Submitted by bearishgurl on March 22, 2012 - 1:49pm.

briansd1 wrote:
$140/sf for new construction in Chula Vista.
I don't know much about Chula Vista.
Maybe a good investment?

http://www.homepath.com/listingdetails.h...

http://www.sdlookup.com/MLS-110034007-22...

http://maps.google.com/maps?q=2250+Treew...

brian, are you following fannie around from place to place to see its new acquisitions?

I would be leary of believing $150 in HOA dues for a complex with a big pool.

If you can check what the *true* HOA dues are and successfully get *correct* answers on that w/o making an offer and also determine the *true* amt of fixed MR assessments from the tax bill, then do the math and if you will be in (generous) positive territory monthly and can financially handle any vacancies, then go for it!

This complex appears to be in the "Windingwalk" area. I'm unsure how large this complex is but are you aware that this area is extremely congested (as well as far flung)?

There are currently a hoarde of vacancies throughout 91914 and 91915 - both in multi-family and single family units.

brian, I thought you stated you had an accepted offer on a SS you had been waiting to get news on....

Submitted by briansd1 on March 22, 2012 - 1:52pm.

BG, just looking out of curiosity.

My SS is in escrow... we shall see.

Submitted by outtamojo on March 22, 2012 - 3:48pm.

My, my, how far we've come :from watching housing crater to becoming landlords -me included!

Submitted by LittleStarfish on April 24, 2012 - 11:50am.

I wanted to add- I know this condo/area quite well.

Yes, it is in Winding Walk, the master fees are $100 plus another $195 for the Condo fees. So actual HOA fees are more like 300 a month...

We bought a little over a year ago (did ok , I think, on a foreclosure) We've meet a few of the neighbors here and seen other units go into foreclosure. Looking around, I'd say 90% of the condo have been turned post crash...

We picked this condo over others in the area for a couple of reasons - te living room on the second floor means you dont have people walkign right by you living/eating areas. The kitchens and laundry rooms were nicer as well.

But the big draw for us - if you look on Google - we are able to walk to the Otay Ranch Towne Center (stores, movies, bookstore,, now a library branch, daughters music classes, small farmers market there on tuesdays, etc..) The Vons is also right across the street, plus my daughters pedi.

There is a HUGE development going in breaking ground this summer

http://milleniasd.com/

Submitted by briansd1 on April 24, 2012 - 12:14pm.

LittleStarfish wrote:

But the big draw for us - if you look on Google - we are able to walk to the Otay Ranch Towne Center (stores, movies, bookstore,, now a library branch, daughters music classes, small farmers market there on tuesdays, etc..) The Vons is also right across the street, plus my daughters pedi.

There is a HUGE development going in breaking ground this summer

http://milleniasd.com/

Looks like a nice area. I'm going to have to drive down there and check it out.

I did go to the Otay Ranch Towne Center when they first opened, but it's been years.

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