[quote=ctr70] . . . 91910 is a C+/B- neighborhood IMO, I don’t know all of it, maybe parts of it are B if you were generous. “A” neighborhoods are places like Carmel Valley, Encinitas, Rancho Bernardo, La Jolla, Point Loma, Del Mar, etc… “B” neighborhoods are San Carlos, Clairemont, Mira Mesa, etc.. “C” neighborhoods (and below.. and there is a wide variance from C- to C+) are places like El Cajon, Lemon Grove, Spring Valley, Vista, most of O-side, Escondido). Of course there are parts of places like El Cajon, etc.. in the hiils that are more “B”.[/quote]
These are MY ratings regards to rentals in metro, south and east county only:
Some “entirely A” areas DO have “B” and/or “Section 8” complexes or “B” blocks but it is not enough to rate part of the area a “B.”
Many “B” areas are saddled with “Section 8 complexes” but are still good areas. In regards to North County, I don’t see some of the areas you mention the same as you do. For instance:
92025: A, B and C (large swath of low income)
92056: B and C (large swath of low income)
92064: A and B (pockets of low income)
92069: A, B and C (low income and lack of zoning in pockets)
92083: A, B and C (large swath of low income)
92128: A and B (lots of fixed income and low income)
92129: A, B and C (lots of low income in pockets)
North County is by no means insulated from poorly-built *newish* “ghettos,” low income residents or crime.
[quote=ctr70]Bearishgirl has never owned a condo but seems to know they all have special assessments and plumbing problems:) I have looked at, talked to and reviewed hoas of dozens and dozens recently and many have not not had special assessments in decades or had very minor ones. But I’m sure there are some bad ones out there…[/quote]
ctr, I don’t need to own a condo to notice all the lawsuits HOA’s have generated in the last 30 years (mostly CD COA’s). Many of the outcomes of these suits didn’t benefit the owners very much in the end. For instance, after 5+ years of lit on the PBT issue, SFR and PUD owners in SD County ended up with about $4400 each. Condo owners ended up with even less. Many of these recipients sold their unit without making repairs. Some HOA’s couldn’t afford to make repairs. The reason I’m so “bearish” on condos is because no “real” property comes with their purchase. The buyer is just purchasing a “fractional interest” of an entire subdivision. The future health and value of each unit depends wholly on the health and capable mgmt or the entire HOA and also on the degree in which owners turn their units over to rentals. With an SFR (unencumbered by an HOA), an owner “has control” over everything about it except the local zoning (known at the time of purchase) or area gentrification (unknown). I wouldn’t buy something for which its future value was completely dependent on people and things I couldn’t control, but that is just me.
[quote=ctr70]Contacting owners direct of vacant properties is a “needle in the haystack” type of strategy and takes a ton of time and effort, using things like direct mail, and you may or may not find something after spending a ton of time most people don’t have. But if you have all that time and could get it to work it would be good. Bearishgirl have you ever bought a property that way? It’s something talked a lot by the “gurus” in books but I don’t meet many non-full time professional buyers that have ever done it. And most of those owners still know what their property is worth and won’t let it go for 20% under it’s current appraised value.[/quote]
No I have not bought any properties this way but have called local owners on behalf of all-cash-buyer friends or visited them with the interested cash buyers in tow. Our offers were good in light of the current condition of the properties but this was 3-4 years ago and owners were still in denial about their property values deteriorating further. We didn’t make any deals and the two properties I’m thinking of are still vacant. One owner has his son visit every couple of mos with a tractor mower to avoid any more weed-abatement citations. The other owner’s spouse won’t let him sell the property as it was hers before they got married. The “weed” property is encumbered for about $28K and the “spouse” property is free and clear (needs a new subfloor, block wall rebuilt, kitchen cabs and a few other things). Both have property taxes of =<$350 yr. So the motivation is very low to sell if they don't need the money right now. Both were former rentals (1500+ sf on 7K to 9K lots) but have been let go to waste so are not currently habitable for tenants.
ctr, you might be SHOCKED how many 55+ yo unemployed or partially-employed tradesmen there are out there with adequate CASH to purchase an SFR like this (or purchase with a like-minded equity partner)!! Some are COMBING the area they grew up in and KNOW it like the back of their (weathered) hands.
In order to do this successfully, you have to know an area intimately. It helps to already be acquainted the the owner and even their previous tenants and to know the owner's personal situation and motivations. If you don't personally live in the area and walk it, I think it would be hard to do this.
[quote=ctr70]And bearishgirl you need to write a book about how you fix these major fixers for less than $5,000:) Apparently all the landlords and investors out there (many contractors themselves) have to spend at least $15k min to fix up most fixer upper SFR rentals they buy right now to make them rent ready. Go visit a few dozen fixers with a yellow pad and cost it out, they have a lot of stuff wrong with them. And it all adds up. But who knows maybe you could do it with all your experience and doing everything yourself, but not many people can. . . . But yeah if you know how to do that stuff or like it, you can save a little money.[/quote]
ctr, didn't you know one of my arms has a yellow pad on a clipboard dangling from it with my trusty 1977 Texas Instruments" calculator clamped on?? ;=]
ctr, I have recently "acquired" over 500 red brick (for a walkway extension), 55 "new" 12 x 12" tile (for a walk-in closet), abt 350 sf of "lightly used" 18 x 18" tile and a 32" mahogany "fire-door" (in exc cond) with hdwre, and 3 boxes of unused matching Dal-Tile wall tile. Also 6 almost full gal of used ext paint in brown and grey (for fencing) and 3 new bathroom drains. That's just from "bartering" and "free" stuff people had to get rid of! Not to mention that I haven't paid for a plant or shrub in 10 years!
There is also spec-builder surplus, overstock pallets at big box stores, discontinued markdowns (make store mgr an offer), craigslist, undelivered special-order windows and doors on clearance, friends cleaning their garages/backyards, etc.
These are rentals we're talking about here. As an investment-property owner, you can’t be picky about color, style, model, etc. You also need to have the time to DIY (however “boring” this may sound) and use contractors or handyman very minimally (i.e. to get a new electrical panel signed off).
There’s no shame in being a scavenger if you can use the item. You’re helping someone clean out their own property and bldg mat’ls can be expensive.
As soon as I finish this last headache of a project, I’m going to get up from this desk and get to work!!
