svelte-actually that isn’t the one I’m looking at, but the math is the same, I never actually post the exact ones, I’m too afraid another pigg will beat me so I post ones that are as close as possible then modify the numners when I post the analysis, but thanks for the heads up anyway.
peter-I’m shocked that supported the idea, you are one the bears and if yo support it, then i may be onto something. I did what you said and did my due diligence and decided to wait. Rents are pretty much the same but I drove by my old rental, it’s still vacant after two months. It’s a different management company that had the sign out front and I’m pretty sure someone moved in just after I left so I’m not sure what happened. I do know what my landlord had paid and they were losing money at the rent I was paying them, lots of it, so I’m not sure if they can lower it even $100 to stay with the trend. It was the only one vacant out of a hundred units so the jury is out, but I obviously need to look into this further.
scardeycat-I almost did the same thing, sometimes I wish I had. I remember finding ubercheap places and calculating a 5 year mortgage, I just couldn’t get the kids to get out of the car and look at it, I don’t have a spouse to convince but in the end couldn’t convince myself, yet I loved the idea. I think you need to get a bunch of friends together and take over a cheap neighborhood, the biggest drawback wasn’t the age and the size, it was the neighbors.
kewp, there hasn’t been hardly anything built in a while, new construction has pretty much been shut down for a year. Forbes listed Temecula and Murrieta as two of top 5 markets in the country for the high sales due to the price drops, Nor is right about the activity, bread last longer at the store than houses these days, listings can’t be measured in days, but should be in hours sometimes. The point of the thread was the smaller places in cruddier hoods more than 20 years old without hoa’s are being overlooked and as Russell pointed out from his past experience, sometimes that is where the better investments are located. If you look at my example, prices are more than half off, that is why the glut isn’t there. I ran my old three car garage monitor formula, inventory is falling. Waiting hawk, as always is right, there really is no difference between mid 90’s and late 80’s here.
My biggest fear is maintenance on a 20-30 year old low end house that probably wasn’t built well to begin with, combining all the factors, I think I’ll just watch this for the next year and not act to hastily and I’ll e-mail pri-dk and compare notes, or rather just steal his, since i have only just begun taking notes.
