At $320k assuming 0% down and 6.25% interest rate, monthly mortgage would be $1970. After tax deduction + tax + HOA(assume $200) = $1664. @ 7%, it goes up by $150. If you just consider the interest alone and compare it to rent, interest would be between 1650-1800/month. Add in tax deduction & HOA, that’d be $1500/month. I’d think it would be a fair price around $320k if that’s the kind of rent it fetches.

@asianautica

Careful using calculations based upon an IO loan and not an amortizing loan. You are not building up principle, and are effectively renting from the bank. In addition, you trade the mobility of renting for the lack of mobility on owning. Trade between mobility and lack of mobility on an even monthly price point is not an even trade. The only thing that would balance such a trade would be speculation on further home value increase, which is not such a good bet right now.

@surveyor
Approach by looking at effective ROE. Interesting but I don’t think it applies in this instance because the individual seems to be looking at offsetting current rent by owning. On the other hand, if they are looking to buy as an investment property, ROE based calcs are appropriate.

@want a good deal
Zip is 92122.

One thing I noticed about the listed property.. Railroad tracks!!! In fact, double tracks, which is where locomotives pass each other(bottom of image). They sometimes have to idle in these locations till the other train arrives from the other direction. Somewhere around half of the units at that location have windows/sides facing the tracks.. Pools seem small (not lane’d) and only two for the entire complex. Parking is either open space or carport. 2 tennis courts, 1 basketball court at the far end… I wonder what those trucks are doing on the access road below the hill near the basketball courts..

I would be careful about using Craigslist for the rent figure. It could be condo-flippers trying to make sure they cover costs. Take a look at http://www.forrent.com and find equivalent apartments. There is also a new apartment complex near completion in that general area, which should decrease demand significantly. Go to hybrid view on the associated google map for the property and look north. That in-process construction is nearly done.

Breeze I am very familiar with Lucera. This entire complex was a conversion that was completed back in 04 I believe. I had some clients who tried to sell last year in the low 400’s and they were living in denial and refused to go lower then that. I hesitate to think where they are at in life now.

The units are okay. One thing that is kind of funny is that when you look on the MLS there are different sq ft ranges for the 2/2 models, you see 848, and some 925 but I believe ALL of them are 848. The tracks are right below the complex and I believe there are plans to put a trolley station in right there as well. Don’t quote me on that. Due diligence is the key. Interior wise the units are okay, the granite counters and stainless steel appliances that are all 3 years old now. Kitchens are a little thin, there is a small dining area and there are no laundry rooms. The standard layout has a stack right off the dining area if I remember right in what most likely used to be a hall closet. The “amenities” are nothing great, yes there is a pool, no it is not huge. Location wise the complex is right there at Nobel near the 5. Parking wise most all of the units have detached garages for parking.

It will be interesting to see how low they go. The lowest price I see is unit 1203 at 319k (7130) and then 7180 unit 5312 for 325. Since they will be short sales it will be up to the lender. I doubt they would take 259 but it never hurts to ask.

Craigs is not bad for rental figures, I found it to be more accurate then people have portrayed it to be but I guess that is me. I always advise any future landlords to take a 5-10% margin into account for safety. If this is a home not a rental for you I would pass as the entire complex has a very apartment type feeling.