The thing I would add to Davelj’s post is that you really need to add the hoa fees into that rent equation.
This area is going to be good for rental (essentially forever) due to its proximity to rte 41/27 bus line and UCSD (yes I used to live there) but the rents are what they are. While parents may be duped by gated complexes and nice neighborhoods, most students are poor and will not pay above market.
Specifically, the unit is going to take in rent minus hoa fees. The real annual rent is this times 12. I would knock off 20% to account for repair and vacancy costs (as well as other costs like tax and insurance). This can get you a sort of rough cap rate.
I would find these compelling if I could get at least 8% of sale price back annually (based on the above numbers) I would find that compelling enough to consider. Part of my reasoning is that rent increases every year and vanilla loan payments do not (emphasis on vanilla).
