Good clarification SD R. I wasnt saying there is pent up demand everywhere for everything but rather there is pent up demand for decent entry level homes well located near employment centers with above average school systems.
LBC,
Wait away. I preach patience to most of clients and have for a few years. We are getting near occasionally. The set of criteria I look for are unique in every case. Here’s a recent one I was watching. 1500 sq ft 3Br townhome in Encinitas owned free and clear by original owner and now a probate sale. Property was listed in the mid 300’s and reduced down to about 330K before going into escrow last week. It only had 1.5 baths but I took a plumber in and figured out how we could easily add another full bath to create a real MBR suite for about 5K or less. Home needed updating but was in very very good condition. Location was among the best in Village Park and even had a nice westward view from two of the upstairs bedrooms which were relatively large. I figured that there was small window of opportunity (b4 they went down to 330K)where I had a shot at getting it between 290K and 275K.
Monthly carrying cost including PITI (30 yr fixed rate with 20% down) plus HOA would put me at 1700 to 1800 per month. It would rent easily for 1800 per month.
I had a client (young professional with about 80K cash saved in the bank, high 700 FICO’s and an 80K annual income) that was about to write an offer on it but hesitated and lost it. With a roomate it would have cost him about 1200 per month plus he’d get a real nice tax deduction.
These are the kinds of deals I look for. This isnt the first like nor will it be the last.
Would you buy something that was cash flow neutral today, would rent easily every day of the week, had potential for higher rent, provided you a nice paper loss for tax purposes and had a solid chance of delivering a 200K capital gain in 10 to 15 years?
