[quote=AN]Rent in Mira Mesa only went up about $100-200 for a 1/1 and 2/2 over the last 15 years. QCOM was much smaller than than it is today. So, I don’t see rent in MM dropping $700/month anytime soon. If rent drop $700/month, then you’re talking about a 2/2 rent @ $800 and a 1/1 rent @500/month. I don’t see that ever happening. Rent for a 2/2 in MM hasn’t been that cheap for 20 years. At that time, QCOM was still in a startup mode and a lot of the QCOM buildings today were just empty land and UTC area was pretty empty compare to how it is today. If we do see that kind of rent drop, then there are much much worse thing to worry about. After all, rent was flat between 2005-2010, during the whole financial crisis.[/quote]
I didn’t really say anything about rents. It’s the months of vacancy you might have to endure. Can you immediately undercut the rents of everybody else in the market and get a new tenant? Most likely you probably could. Basically the question is how long can you carry leveraged rental property without collecting the rent and how quickly are you willing to lower the rental price.