Bear, do you think the rental market will hold. I have to admit it’s as tight as it has ever been right now. There is very little for rent so. of 79, 1500 gets you a condo in Auberry and 2000 will get you one of those houses I linked. With a purchase price of 250k and rent of 2k, it’s a 125x ratio, the townhouses can be had for 200k, similar ratio. The gamble is will the rentals stay rented. I had to pay double rent for two weeks just to make sure I got a place where I wanted it because of the limited supply yet every tenth house is vacant. The people moving out almost had to be pushed because their new place wasn’t vacant yet. Are the current rents and vacancy factor artificial because so many people were being foreclosed on and are essentially tying up two houses (one they rent, the other in the slow foreclosure process)? When this squeezes through will the rental market get tough for landlords? And do you think some of the forclosees are just hanging around in their rental until their kids finish the school year? It just seemed to me as I was rental shopping that if I didn’t have the roots I have here, I would rent somehwere else, I would think the average commuter would move on since rents are similar in S.D. and O.C. Then again, you are the mogul, I’m a hobbyist.
Your comment about the banks taking lowballs, I think that cherry is about to pop. look at these listings that are bank owned all listed for more than four months and notice near the bottom of the page the listing price drops, seems they drop 10-20k a month like clockwork, they have got to be getting tired of that. Some have reduced their price 30%, just wait sixty days and they will take the 50k off themselves. Now that football season is over I have something to replace it with, it’s like checking standings every week to see who is in the lead.
actually don’t buy that last one, save it for me, it’s dropped 6 times in the last eight months for a total of 164k in drops, thats over 20k a month, in six months it will be 270k, it’s a little old school inside but check out the sattelite photo, that’s the golf course parking lot and I can walk home drunk from the golf course bar. I like that Euro feel of being able to hoof it to the pub.
