El Cajon condo meltdown

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Submitted by pabloesqobar on July 13, 2008 - 10:43am

My friend just emailed me this condo listing in El Cajon:

http://www.sdlookup.com/MLS-086029648-28...

He owns the identical unit right next door, unit 284. He paid $275k for his at the peak. He's renting his out and has a small negative monthly cash flow. I have to imagine that this unit would pencil out as a rental with a positive cash flow if it goes for this price.

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If you can get a grand a
Submitted by temeculaguy on July 13, 2008 - 11:06am.

If you can get a grand a month for rent, it pencils out. Egads it's ugly. At 120k for a 1k rental it is 120x rent. 120k at 6.5 fixed is $750, with 20k down it's $632. HOA and taxes should get you to a grand. But it looks close to rent nuetral from day one, worth looking into the specifics.

Junkers are always better rentals on paper. Imagine finding a 4s rental that sells for 600k and rents for $4,000.00 You won't find it.