[quote=bearishgurl]flu, instead of taking up bandwidth, why don’t you explain yourself a little better?[/quote]
Just because you think it’s ridiculous to pay $1800/month for a 1/1 somewhere, doesn’t mean that there isn’t plenty of people who would and/or plenty of people who can afford to and willing to afford to.
As I stated earlier
$1400 gets you a 1/1 condo in MM, in which you would have no difficulty filling with an well qualified applicant of 700+credit score, $80k+ salary…
In places near College Area/SDSU, the same $1400/month gets me tenants for 2/2 who can afford that…A lot more people with questionable credit, and a lot higher turnover rate due to the location of where it’s at…
Different tenant pools, different financial situations,etc.
Purchase prices about the same, rent about the same. PITA factor not the same. And for now, appreciation definitely not the same. MM definitely leaders in the latter two points for the same amount of money and rent..MM 1/1 from my point of view has seen about a 35% appreciation, and rent has gone up, and there is relatively low/no vacancy for a 1/1. 2/2 place around College Area has a lot more competition, the appreciation hasn’t quite happened there yet. And the turnover is higher probability.
FWIW: there is are people willing to pay $1800/month for a 1/1. They would be called Carmel Valley renters…The same sort of people that would thumb their nose at the thought of living in MM (sorry AN, not to offend where you’re at)…There was a point of time in which CarmelValley was break even or slightly cash flow + with standard 20% down…Those days are long gone as well. Why would people buy at close to break even or slightly up for rental? Well some people believe better area => better chances of better appreciation without the risk of getting shot. But seriously, there’s a market for “expensive” condos… What only matters if you can get the numbers to work…
You can argue all you want on why certain area prices are or are not justified. The only thing is what they really are, not what you want to believe it should be…At least that’s the case if what you care about is making money…
Personally, if I could rent out a cardboard box for $1800/month, I would…I wouldn’t live in it myself.. But hey, if there’s a market for it, and it’s legal, and someone wants to pay, go for it…
