Best neighborhood to BUY a rental property in San Diego?

[ctr70]

Temecualguy…I think you have some very good points about Temecula and I will have to take a look up there. But can you really land a $135k 4/2 1,364sf nice house up there right now? My guess that is the “bait” price and it gets bid up more towards $200k. That’s a big difference between $80k for the same house in Vegas or Phoenix that rents for $1,100. Also, does that Temecula house have Mello Roos? That would be a cash flow killer.

On the areas another poster mentioned, unless you have a gigantic down payment, no way can you make the numbers even close to work on a SFR in Clairemont Mesa, Kearny Mesa, Mira Mesa or La Mesa. Maybe at the very bottom of the La Mesa market where it gets sketch near hwy 94…but even then it’s tough.

It seems to me for SFR rentals in SD County you have to go into the low end of Nat City, Spring Valley, Paradise Hills, Encanto, Lemon Grove, Old Chula, Escondido, maybe parts of Oceanside/Vista… to have a chance. If you’re more brave, City Hieghts and Logan Heights. And even then you get absolute bottom of the barrel junk for $175k.

[temeculaguy]

ctr, it’s completely possible, when we talk about bidding wars we are talking maybe 10%, I’d say the winner would get it for 145k-150k if it weren’t a short (you never can tell with a short). A model match closed around the corner for 145k 3 weeks ago, that was the winning bid. There are some pending and sold in the 170’s and 180’s, but there are idiots with money everywhere, we can’t base things on them. 200k is laughable for those, for 200k up here you can get a much nicer and better proportioned place (1800-2000 sq ft, same bedroom count, better hood). To be quite honest I don’t follow the cheap sfr’s for rentals, I stay with the condos in my micromarket for a potential rental for a variety of reasons and they pencil out better. The sfr rental opportunities are getting a lot of out of towner investor attention, some people just have a thing against condos and I have a thing against what other people have a thing for. There is a rent ceiling here since prices are low, a 100k place rents for more than 1k, a 150k place rents for 1500, but after that it drops off, a 250k place rents for 1800, a 300k place rents for 2k, a 400k place, maybe 2200, after that, good luck, there’s no rental market because anyone with more than 2200 will buy their own.

But yeah, there are lots of knuckleheads with suitcases full of money showing up trying to buy investment properties here, they’ve been coming for a while and screwing up my plans to rule the world. I battled with them last year when buying the primary and i’ll battle with them when the rental aquisition time comes, they seem to take the winter off, so postpone your visit about 6-8 weeks, use the time to study things and maybe they will leave again until february. I am routinely accused of being bullish but I am actually nuetral, I do not thing there will be any sustained appreciation in 2010, I think it will be flat, in the rear view mirror my hood may have overshot, bounced up 10% and will be in A cup mode for at least a year, if not longer, so there’s no reason to think deals cannot be had moving forward.

[temeculaguy]

ctr, it’s completely possible, when we talk about bidding wars we are talking maybe 10%, I’d say the winner would get it for 145k-150k if it weren’t a short (you never can tell with a short). A model match closed around the corner for 145k 3 weeks ago, that was the winning bid. There are some pending and sold in the 170’s and 180’s, but there are idiots with money everywhere, we can’t base things on them. 200k is laughable for those, for 200k up here you can get a much nicer and better proportioned place (1800-2000 sq ft, same bedroom count, better hood). To be quite honest I don’t follow the cheap sfr’s for rentals, I stay with the condos in my micromarket for a potential rental for a variety of reasons and they pencil out better. The sfr rental opportunities are getting a lot of out of towner investor attention, some people just have a thing against condos and I have a thing against what other people have a thing for. There is a rent ceiling here since prices are low, a 100k place rents for more than 1k, a 150k place rents for 1500, but after that it drops off, a 250k place rents for 1800, a 300k place rents for 2k, a 400k place, maybe 2200, after that, good luck, there’s no rental market because anyone with more than 2200 will buy their own.

But yeah, there are lots of knuckleheads with suitcases full of money showing up trying to buy investment properties here, they’ve been coming for a while and screwing up my plans to rule the world. I battled with them last year when buying the primary and i’ll battle with them when the rental aquisition time comes, they seem to take the winter off, so postpone your visit about 6-8 weeks, use the time to study things and maybe they will leave again until february. I am routinely accused of being bullish but I am actually nuetral, I do not thing there will be any sustained appreciation in 2010, I think it will be flat, in the rear view mirror my hood may have overshot, bounced up 10% and will be in A cup mode for at least a year, if not longer, so there’s no reason to think deals cannot be had moving forward.

[temeculaguy]

ctr, it’s completely possible, when we talk about bidding wars we are talking maybe 10%, I’d say the winner would get it for 145k-150k if it weren’t a short (you never can tell with a short). A model match closed around the corner for 145k 3 weeks ago, that was the winning bid. There are some pending and sold in the 170’s and 180’s, but there are idiots with money everywhere, we can’t base things on them. 200k is laughable for those, for 200k up here you can get a much nicer and better proportioned place (1800-2000 sq ft, same bedroom count, better hood). To be quite honest I don’t follow the cheap sfr’s for rentals, I stay with the condos in my micromarket for a potential rental for a variety of reasons and they pencil out better. The sfr rental opportunities are getting a lot of out of towner investor attention, some people just have a thing against condos and I have a thing against what other people have a thing for. There is a rent ceiling here since prices are low, a 100k place rents for more than 1k, a 150k place rents for 1500, but after that it drops off, a 250k place rents for 1800, a 300k place rents for 2k, a 400k place, maybe 2200, after that, good luck, there’s no rental market because anyone with more than 2200 will buy their own.

But yeah, there are lots of knuckleheads with suitcases full of money showing up trying to buy investment properties here, they’ve been coming for a while and screwing up my plans to rule the world. I battled with them last year when buying the primary and i’ll battle with them when the rental aquisition time comes, they seem to take the winter off, so postpone your visit about 6-8 weeks, use the time to study things and maybe they will leave again until february. I am routinely accused of being bullish but I am actually nuetral, I do not thing there will be any sustained appreciation in 2010, I think it will be flat, in the rear view mirror my hood may have overshot, bounced up 10% and will be in A cup mode for at least a year, if not longer, so there’s no reason to think deals cannot be had moving forward.

[temeculaguy]

ctr, it’s completely possible, when we talk about bidding wars we are talking maybe 10%, I’d say the winner would get it for 145k-150k if it weren’t a short (you never can tell with a short). A model match closed around the corner for 145k 3 weeks ago, that was the winning bid. There are some pending and sold in the 170’s and 180’s, but there are idiots with money everywhere, we can’t base things on them. 200k is laughable for those, for 200k up here you can get a much nicer and better proportioned place (1800-2000 sq ft, same bedroom count, better hood). To be quite honest I don’t follow the cheap sfr’s for rentals, I stay with the condos in my micromarket for a potential rental for a variety of reasons and they pencil out better. The sfr rental opportunities are getting a lot of out of towner investor attention, some people just have a thing against condos and I have a thing against what other people have a thing for. There is a rent ceiling here since prices are low, a 100k place rents for more than 1k, a 150k place rents for 1500, but after that it drops off, a 250k place rents for 1800, a 300k place rents for 2k, a 400k place, maybe 2200, after that, good luck, there’s no rental market because anyone with more than 2200 will buy their own.

But yeah, there are lots of knuckleheads with suitcases full of money showing up trying to buy investment properties here, they’ve been coming for a while and screwing up my plans to rule the world. I battled with them last year when buying the primary and i’ll battle with them when the rental aquisition time comes, they seem to take the winter off, so postpone your visit about 6-8 weeks, use the time to study things and maybe they will leave again until february. I am routinely accused of being bullish but I am actually nuetral, I do not thing there will be any sustained appreciation in 2010, I think it will be flat, in the rear view mirror my hood may have overshot, bounced up 10% and will be in A cup mode for at least a year, if not longer, so there’s no reason to think deals cannot be had moving forward.

[temeculaguy]

ctr, it’s completely possible, when we talk about bidding wars we are talking maybe 10%, I’d say the winner would get it for 145k-150k if it weren’t a short (you never can tell with a short). A model match closed around the corner for 145k 3 weeks ago, that was the winning bid. There are some pending and sold in the 170’s and 180’s, but there are idiots with money everywhere, we can’t base things on them. 200k is laughable for those, for 200k up here you can get a much nicer and better proportioned place (1800-2000 sq ft, same bedroom count, better hood). To be quite honest I don’t follow the cheap sfr’s for rentals, I stay with the condos in my micromarket for a potential rental for a variety of reasons and they pencil out better. The sfr rental opportunities are getting a lot of out of towner investor attention, some people just have a thing against condos and I have a thing against what other people have a thing for. There is a rent ceiling here since prices are low, a 100k place rents for more than 1k, a 150k place rents for 1500, but after that it drops off, a 250k place rents for 1800, a 300k place rents for 2k, a 400k place, maybe 2200, after that, good luck, there’s no rental market because anyone with more than 2200 will buy their own.

But yeah, there are lots of knuckleheads with suitcases full of money showing up trying to buy investment properties here, they’ve been coming for a while and screwing up my plans to rule the world. I battled with them last year when buying the primary and i’ll battle with them when the rental aquisition time comes, they seem to take the winter off, so postpone your visit about 6-8 weeks, use the time to study things and maybe they will leave again until february. I am routinely accused of being bullish but I am actually nuetral, I do not thing there will be any sustained appreciation in 2010, I think it will be flat, in the rear view mirror my hood may have overshot, bounced up 10% and will be in A cup mode for at least a year, if not longer, so there’s no reason to think deals cannot be had moving forward.

[carlsbadworker]

TG, can you explain more why you are against cheap sfr? I think people are against condo because of its fees and it usually rises up faster than the inflation. Therefore, it is kind of tricky to calculate ROI on condos. The other thing is that lower end condo is attractive to “headache” renters, people with such bad credit scores that even the apartment complex (which is the direct competition) does not want to deal with them.
To me, the only thing attractive about condo is its price. It is hard to find a decent sfr that will pencil out as a rental property. It is hard to find decent sfr below $200K (repair cost etc included) and anything above that has a bad rent multiplier.

[carlsbadworker]

TG, can you explain more why you are against cheap sfr? I think people are against condo because of its fees and it usually rises up faster than the inflation. Therefore, it is kind of tricky to calculate ROI on condos. The other thing is that lower end condo is attractive to “headache” renters, people with such bad credit scores that even the apartment complex (which is the direct competition) does not want to deal with them.
To me, the only thing attractive about condo is its price. It is hard to find a decent sfr that will pencil out as a rental property. It is hard to find decent sfr below $200K (repair cost etc included) and anything above that has a bad rent multiplier.

[carlsbadworker]

TG, can you explain more why you are against cheap sfr? I think people are against condo because of its fees and it usually rises up faster than the inflation. Therefore, it is kind of tricky to calculate ROI on condos. The other thing is that lower end condo is attractive to “headache” renters, people with such bad credit scores that even the apartment complex (which is the direct competition) does not want to deal with them.
To me, the only thing attractive about condo is its price. It is hard to find a decent sfr that will pencil out as a rental property. It is hard to find decent sfr below $200K (repair cost etc included) and anything above that has a bad rent multiplier.

[carlsbadworker]

TG, can you explain more why you are against cheap sfr? I think people are against condo because of its fees and it usually rises up faster than the inflation. Therefore, it is kind of tricky to calculate ROI on condos. The other thing is that lower end condo is attractive to “headache” renters, people with such bad credit scores that even the apartment complex (which is the direct competition) does not want to deal with them.
To me, the only thing attractive about condo is its price. It is hard to find a decent sfr that will pencil out as a rental property. It is hard to find decent sfr below $200K (repair cost etc included) and anything above that has a bad rent multiplier.

[carlsbadworker]

TG, can you explain more why you are against cheap sfr? I think people are against condo because of its fees and it usually rises up faster than the inflation. Therefore, it is kind of tricky to calculate ROI on condos. The other thing is that lower end condo is attractive to “headache” renters, people with such bad credit scores that even the apartment complex (which is the direct competition) does not want to deal with them.
To me, the only thing attractive about condo is its price. It is hard to find a decent sfr that will pencil out as a rental property. It is hard to find decent sfr below $200K (repair cost etc included) and anything above that has a bad rent multiplier.

[jamsvet]

One thing to remember is make sure you buy something that you can see at least once a week. I don’t care if you have a professional property manager or not. Unless you drive by a place on your way to the office, don’t buy it.
As to dollars, nothing in SD makes any sense. Try going vacant for a month in that SFR or Condo and see how well that works out for you.

[jamsvet]

One thing to remember is make sure you buy something that you can see at least once a week. I don’t care if you have a professional property manager or not. Unless you drive by a place on your way to the office, don’t buy it.
As to dollars, nothing in SD makes any sense. Try going vacant for a month in that SFR or Condo and see how well that works out for you.

[jamsvet]

One thing to remember is make sure you buy something that you can see at least once a week. I don’t care if you have a professional property manager or not. Unless you drive by a place on your way to the office, don’t buy it.
As to dollars, nothing in SD makes any sense. Try going vacant for a month in that SFR or Condo and see how well that works out for you.

[jamsvet]

One thing to remember is make sure you buy something that you can see at least once a week. I don’t care if you have a professional property manager or not. Unless you drive by a place on your way to the office, don’t buy it.
As to dollars, nothing in SD makes any sense. Try going vacant for a month in that SFR or Condo and see how well that works out for you.

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