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  • December 13, 2009 at 4:44 PM #16803
    cv2
    Participant

    Hi All,

    I am thinking of buying an investment property as a hedge to inflation. I found this property:

    http://www.sdlookup.com/MLS-090067774-3418_Del_Este_Oceanside_CA_92056

    My maths is the following:

    Yearly rent could be $1,200/month * 12 = $14,400.
    HOA $350 * 12 = $4,200
    Property Tax $1,000

    So the income is about $9,200. Depending on the purchase price, the CAP rate could be as high as 10%.

    What are my risks? I do not know the area well but I visited couple of times and seems to be a good area and surprisingly it is in Carlsbad school district. Did I miss any thing?

    December 13, 2009 at 5:00 PM #493739
    booter1
    Participant

    CV2- I think you are perhaps neglecting to include the following in your calcualtions..

    1) Assuming 100% occupancy rate?
    Try running numbers at 70%

    2) Insurance costs?

    3) Maintenance costs- both routine and costs incurred between renters

    4) Risk of increasing HOA costs as well as any special assessments?

    5)Any Mello-Roos costs?

    6) Don’t know the area but property taxes seem low

    December 13, 2009 at 5:00 PM #493898
    booter1
    Participant

    CV2- I think you are perhaps neglecting to include the following in your calcualtions..

    1) Assuming 100% occupancy rate?
    Try running numbers at 70%

    2) Insurance costs?

    3) Maintenance costs- both routine and costs incurred between renters

    4) Risk of increasing HOA costs as well as any special assessments?

    5)Any Mello-Roos costs?

    6) Don’t know the area but property taxes seem low

    December 13, 2009 at 5:00 PM #494285
    booter1
    Participant

    CV2- I think you are perhaps neglecting to include the following in your calcualtions..

    1) Assuming 100% occupancy rate?
    Try running numbers at 70%

    2) Insurance costs?

    3) Maintenance costs- both routine and costs incurred between renters

    4) Risk of increasing HOA costs as well as any special assessments?

    5)Any Mello-Roos costs?

    6) Don’t know the area but property taxes seem low

    December 13, 2009 at 5:00 PM #494373
    booter1
    Participant

    CV2- I think you are perhaps neglecting to include the following in your calcualtions..

    1) Assuming 100% occupancy rate?
    Try running numbers at 70%

    2) Insurance costs?

    3) Maintenance costs- both routine and costs incurred between renters

    4) Risk of increasing HOA costs as well as any special assessments?

    5)Any Mello-Roos costs?

    6) Don’t know the area but property taxes seem low

    December 13, 2009 at 5:00 PM #494613
    booter1
    Participant

    CV2- I think you are perhaps neglecting to include the following in your calcualtions..

    1) Assuming 100% occupancy rate?
    Try running numbers at 70%

    2) Insurance costs?

    3) Maintenance costs- both routine and costs incurred between renters

    4) Risk of increasing HOA costs as well as any special assessments?

    5)Any Mello-Roos costs?

    6) Don’t know the area but property taxes seem low

    December 13, 2009 at 5:19 PM #493754
    cv2
    Participant

    As far as I know, there is no mello-roos because it is an established area. The property tax is 1% of sale price and the asking price is $89,000. Although it won’t be the final price, I just put $1,000 a year as an estimate.

    Yes, I missed maintenance costs. Since it is a condo complex, HOA carries insurance. Do I have to buy extra insurance?

    Thanks!

    December 13, 2009 at 5:19 PM #493913
    cv2
    Participant

    As far as I know, there is no mello-roos because it is an established area. The property tax is 1% of sale price and the asking price is $89,000. Although it won’t be the final price, I just put $1,000 a year as an estimate.

    Yes, I missed maintenance costs. Since it is a condo complex, HOA carries insurance. Do I have to buy extra insurance?

    Thanks!

    December 13, 2009 at 5:19 PM #494300
    cv2
    Participant

    As far as I know, there is no mello-roos because it is an established area. The property tax is 1% of sale price and the asking price is $89,000. Although it won’t be the final price, I just put $1,000 a year as an estimate.

    Yes, I missed maintenance costs. Since it is a condo complex, HOA carries insurance. Do I have to buy extra insurance?

    Thanks!

    December 13, 2009 at 5:19 PM #494388
    cv2
    Participant

    As far as I know, there is no mello-roos because it is an established area. The property tax is 1% of sale price and the asking price is $89,000. Although it won’t be the final price, I just put $1,000 a year as an estimate.

    Yes, I missed maintenance costs. Since it is a condo complex, HOA carries insurance. Do I have to buy extra insurance?

    Thanks!

    December 13, 2009 at 5:19 PM #494628
    cv2
    Participant

    As far as I know, there is no mello-roos because it is an established area. The property tax is 1% of sale price and the asking price is $89,000. Although it won’t be the final price, I just put $1,000 a year as an estimate.

    Yes, I missed maintenance costs. Since it is a condo complex, HOA carries insurance. Do I have to buy extra insurance?

    Thanks!

    December 13, 2009 at 5:22 PM #493763
    cv2
    Participant

    With 70% occupancy rate, the income drops to $4,600. The CAP rate drops pretty significantly, but it still beats the negative saving rate in the bank.

    Any thoughts?

    December 13, 2009 at 5:22 PM #493923
    cv2
    Participant

    With 70% occupancy rate, the income drops to $4,600. The CAP rate drops pretty significantly, but it still beats the negative saving rate in the bank.

    Any thoughts?

    December 13, 2009 at 5:22 PM #494310
    cv2
    Participant

    With 70% occupancy rate, the income drops to $4,600. The CAP rate drops pretty significantly, but it still beats the negative saving rate in the bank.

    Any thoughts?

    December 13, 2009 at 5:22 PM #494398
    cv2
    Participant

    With 70% occupancy rate, the income drops to $4,600. The CAP rate drops pretty significantly, but it still beats the negative saving rate in the bank.

    Any thoughts?

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