[quote=earlyretirement]Yeah, I saw Zillow had a rent zestimate of $1422 per month. I’m sure that area might be a bit rough but seems like the buyer is getting a steal if they can get $1400 per month!
I saw it was a short sale so realize that these types of thing are few and far between. Typically I only like buying in premium areas or areas that are quickly gentrifying but I think I’d risk it for that price!
spdrun – sounds like you’re cleaning up if you’re picking up properties at this price and getting these types of rents![/quote]
ER, this area isn’t “rough.” It is working class and students. A lot of white collar professionals and para-professionals who work downtown live there.
You stated above that you think SFR’s? in “NCC” and “good school districts” make good rentals. Actually, they don’t, for buyers who are purchasing today. They cost too much and insurance, taxes and often HOA/MR are too high on them to cash flow, unless the buyer puts 50-60% down. For a house like you’re talking about, that is $350-$400K down. These properties don’t typically “pencil out” in SD as rentals.
IIRC, you’ve stated before that your rentals are not in CA and that some (or all?) of them are overseas. You also stated that you rent (some or all?) of them by the day, week and month (short-term resort? lodging). That is NOT what spdrun and flu are looking for here.
They are looking for local bread-and-butter cash flow.
The “truly wealthy” families who move into SD can buy. They have no need to rent. And only very few micro-areas in SD County allow day, week and month rentals, as you have.
For these reasons, your rental experiences are not analogous to those found in SD County, IMHO.
