Balboa Ridge Condominiums

[jimmi181]

All,

I’m currently looking at a 2br/2ba two story condominium in the Balboa Ridge Condominium complex. It is a two-story town home unit that is on a corner. Sq footage is ~900. The developer is holding firm on their price of 315k but there are a few units short-selling for way less. Does anyone know anything about the developer/project? From what we’re told, it’s essentially new construction b/c the original buildings were stripped down to the frame…new electrical/plumbing.

Please help us decide if this place is worth what they’re asking.

[jpinpb]

Do you homework! I have come across some NODs in the complex.

5402 Balboa Arms 323 is listed at 269k, Beds/Baths: 2 / 2
Square Feet: 880 sf

#439 4 / 2 1,101sf listed for $295,000 $268 psf

#341 3 / 2 971sf listed for $300,000 to $330,000 $340 psf

5252 Balboa Arms 233L listed at 280k.

Check Balboa Ridge activity and click on all the units. Do comparisons on location, square footage and price. Then check recent sales. Check to see if anyone posted any NODs or foreclosures on them. Short sales may end up selling for less, potentially and most likely bringing down the comps.

Eventually the developer may end up reducing. I personally think 315k is too high and wouldn’t do it. There are units in UTC selling for less and better hood.

[jpinpb]

Do you homework! I have come across some NODs in the complex.

5402 Balboa Arms 323 is listed at 269k, Beds/Baths: 2 / 2
Square Feet: 880 sf

#439 4 / 2 1,101sf listed for $295,000 $268 psf

#341 3 / 2 971sf listed for $300,000 to $330,000 $340 psf

5252 Balboa Arms 233L listed at 280k.

Check Balboa Ridge activity and click on all the units. Do comparisons on location, square footage and price. Then check recent sales. Check to see if anyone posted any NODs or foreclosures on them. Short sales may end up selling for less, potentially and most likely bringing down the comps.

Eventually the developer may end up reducing. I personally think 315k is too high and wouldn’t do it. There are units in UTC selling for less and better hood.

[jpinpb]

Do you homework! I have come across some NODs in the complex.

5402 Balboa Arms 323 is listed at 269k, Beds/Baths: 2 / 2
Square Feet: 880 sf

#439 4 / 2 1,101sf listed for $295,000 $268 psf

#341 3 / 2 971sf listed for $300,000 to $330,000 $340 psf

5252 Balboa Arms 233L listed at 280k.

Check Balboa Ridge activity and click on all the units. Do comparisons on location, square footage and price. Then check recent sales. Check to see if anyone posted any NODs or foreclosures on them. Short sales may end up selling for less, potentially and most likely bringing down the comps.

Eventually the developer may end up reducing. I personally think 315k is too high and wouldn’t do it. There are units in UTC selling for less and better hood.

[jpinpb]

Do you homework! I have come across some NODs in the complex.

5402 Balboa Arms 323 is listed at 269k, Beds/Baths: 2 / 2
Square Feet: 880 sf

#439 4 / 2 1,101sf listed for $295,000 $268 psf

#341 3 / 2 971sf listed for $300,000 to $330,000 $340 psf

5252 Balboa Arms 233L listed at 280k.

Check Balboa Ridge activity and click on all the units. Do comparisons on location, square footage and price. Then check recent sales. Check to see if anyone posted any NODs or foreclosures on them. Short sales may end up selling for less, potentially and most likely bringing down the comps.

Eventually the developer may end up reducing. I personally think 315k is too high and wouldn’t do it. There are units in UTC selling for less and better hood.

[jpinpb]

Do you homework! I have come across some NODs in the complex.

5402 Balboa Arms 323 is listed at 269k, Beds/Baths: 2 / 2
Square Feet: 880 sf

#439 4 / 2 1,101sf listed for $295,000 $268 psf

#341 3 / 2 971sf listed for $300,000 to $330,000 $340 psf

5252 Balboa Arms 233L listed at 280k.

Check Balboa Ridge activity and click on all the units. Do comparisons on location, square footage and price. Then check recent sales. Check to see if anyone posted any NODs or foreclosures on them. Short sales may end up selling for less, potentially and most likely bringing down the comps.

Eventually the developer may end up reducing. I personally think 315k is too high and wouldn’t do it. There are units in UTC selling for less and better hood.

[davelj]

Agree with jp. Unless someone can convince you that these units would rent for more than $1500/month, anything above $225K seems too high.

Here’s the developer’s site: http://www.mpcondos.com/property_list.php?property_status=Now%20Selling

Note the property at the top listed for $139,900 that rents for “$1495-$1595 per month.” I see the following exchange between you and Maisel Presley:

You: Why are you selling this other property for 8x annual rent but you’re trying to sell me this property for over 17x rent?
MP: Well, this property here is nicer than the other property.
You: Well doesn’t the rent for this property here reflect the fact that it’s “nicer”? And, if so, then why should I pay a higher multiple?
MP: Well… ummmm…

Condos are just apartments that are owned. Back into the (approximate) value based on the rent. That is, use the rent as the starting point to determine value, not the asking price.

[davelj]

Agree with jp. Unless someone can convince you that these units would rent for more than $1500/month, anything above $225K seems too high.

Here’s the developer’s site: http://www.mpcondos.com/property_list.php?property_status=Now%20Selling

Note the property at the top listed for $139,900 that rents for “$1495-$1595 per month.” I see the following exchange between you and Maisel Presley:

You: Why are you selling this other property for 8x annual rent but you’re trying to sell me this property for over 17x rent?
MP: Well, this property here is nicer than the other property.
You: Well doesn’t the rent for this property here reflect the fact that it’s “nicer”? And, if so, then why should I pay a higher multiple?
MP: Well… ummmm…

Condos are just apartments that are owned. Back into the (approximate) value based on the rent. That is, use the rent as the starting point to determine value, not the asking price.

[davelj]

Agree with jp. Unless someone can convince you that these units would rent for more than $1500/month, anything above $225K seems too high.

Here’s the developer’s site: http://www.mpcondos.com/property_list.php?property_status=Now%20Selling

Note the property at the top listed for $139,900 that rents for “$1495-$1595 per month.” I see the following exchange between you and Maisel Presley:

You: Why are you selling this other property for 8x annual rent but you’re trying to sell me this property for over 17x rent?
MP: Well, this property here is nicer than the other property.
You: Well doesn’t the rent for this property here reflect the fact that it’s “nicer”? And, if so, then why should I pay a higher multiple?
MP: Well… ummmm…

Condos are just apartments that are owned. Back into the (approximate) value based on the rent. That is, use the rent as the starting point to determine value, not the asking price.

[davelj]

Agree with jp. Unless someone can convince you that these units would rent for more than $1500/month, anything above $225K seems too high.

Here’s the developer’s site: http://www.mpcondos.com/property_list.php?property_status=Now%20Selling

Note the property at the top listed for $139,900 that rents for “$1495-$1595 per month.” I see the following exchange between you and Maisel Presley:

You: Why are you selling this other property for 8x annual rent but you’re trying to sell me this property for over 17x rent?
MP: Well, this property here is nicer than the other property.
You: Well doesn’t the rent for this property here reflect the fact that it’s “nicer”? And, if so, then why should I pay a higher multiple?
MP: Well… ummmm…

Condos are just apartments that are owned. Back into the (approximate) value based on the rent. That is, use the rent as the starting point to determine value, not the asking price.

[davelj]

Agree with jp. Unless someone can convince you that these units would rent for more than $1500/month, anything above $225K seems too high.

Here’s the developer’s site: http://www.mpcondos.com/property_list.php?property_status=Now%20Selling

Note the property at the top listed for $139,900 that rents for “$1495-$1595 per month.” I see the following exchange between you and Maisel Presley:

You: Why are you selling this other property for 8x annual rent but you’re trying to sell me this property for over 17x rent?
MP: Well, this property here is nicer than the other property.
You: Well doesn’t the rent for this property here reflect the fact that it’s “nicer”? And, if so, then why should I pay a higher multiple?
MP: Well… ummmm…

Condos are just apartments that are owned. Back into the (approximate) value based on the rent. That is, use the rent as the starting point to determine value, not the asking price.

[urbanrealtor]

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).

[urbanrealtor]

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).

[urbanrealtor]

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).

[urbanrealtor]

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).

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