Buying a small condo in UTC as an investment?

[Scarlett]

I have seen on SDL (BTW, excellent threads JP!) lots of UTC condos getting NODs and going REOs. 1/1 bdr (e.g. Villa Vicenza,Venetian) are now going for mid 100K. Rent is around $1100-1200 . With 25% down, P&I is like $600, add HOAs of 2-300$ and I think it starts to pencil out as investment. Yea, some may go towards some repairs/maintenance and maybe vacancy.

Why is it a bad idea to buy one to rent it out? What am I missing? Investors should jump at them, no? – there is always plenty of UCSD staff and students wanting to rent there. Is it that it’s hard to get loan approval for those condos where probably a lot are NOT owner occupied – unless you have almost all cash? Because the HOA may get in big trouble/ bankrupt?
Is it a bad idea because the prices, and the rents, will decline further? What is the breaking point (rent income vs P&I+insurance+HOAs+MRs) at which a property starts to pencil out as an investement (as a rental)?

Thanks!

[SanDiegoDave]

All the short sales and foreclosures are taking months to get a response from the banks. And I’d be weary of the financial health of the HOA’s on those lower priced condo conversions.

The only real way to make money on a condo rental in UTC right now is to buy a more expensive one, pay with all cash (or at least 50% down), and make sure it’s nicer than the next place that’s asking the same rental price.

[SanDiegoDave]

All the short sales and foreclosures are taking months to get a response from the banks. And I’d be weary of the financial health of the HOA’s on those lower priced condo conversions.

The only real way to make money on a condo rental in UTC right now is to buy a more expensive one, pay with all cash (or at least 50% down), and make sure it’s nicer than the next place that’s asking the same rental price.

[SanDiegoDave]

All the short sales and foreclosures are taking months to get a response from the banks. And I’d be weary of the financial health of the HOA’s on those lower priced condo conversions.

The only real way to make money on a condo rental in UTC right now is to buy a more expensive one, pay with all cash (or at least 50% down), and make sure it’s nicer than the next place that’s asking the same rental price.

[SanDiegoDave]

All the short sales and foreclosures are taking months to get a response from the banks. And I’d be weary of the financial health of the HOA’s on those lower priced condo conversions.

The only real way to make money on a condo rental in UTC right now is to buy a more expensive one, pay with all cash (or at least 50% down), and make sure it’s nicer than the next place that’s asking the same rental price.

[SanDiegoDave]

All the short sales and foreclosures are taking months to get a response from the banks. And I’d be weary of the financial health of the HOA’s on those lower priced condo conversions.

The only real way to make money on a condo rental in UTC right now is to buy a more expensive one, pay with all cash (or at least 50% down), and make sure it’s nicer than the next place that’s asking the same rental price.

[jpinpb]

I think rent prices are going down. On one of those threads someone posted about USCD adding more student housing.

Banks seem to like cash deal only, holding up sales, besides the normal short sales. The occupancy rate also affects banks lending. Some of the HOAs have lawsuits (Vicenza, Lucera). I’m seriously wondering about the health of some of these HOAs and I have yet to figure out what happens if they go bankrupt. State takes them over?

Overall, I think some of them pencil out rent wise today. If you screen the tenant well, hopefully they won’t trash the place and pay on time. There are some good deals out there and some make sense. USCD does not have a reputation as a party school and I would think the students renting are responsible.

The only unknown factor is if rents decline.

SDDT had a headline:

“San Diego County’s apartment vacancy rate rising, as rents decline
The apartment vacancy rate has surpassed the 5 percent mark for the first time in about 15 years.”

I didn’t get to read the whole story.

[jpinpb]

I think rent prices are going down. On one of those threads someone posted about USCD adding more student housing.

Banks seem to like cash deal only, holding up sales, besides the normal short sales. The occupancy rate also affects banks lending. Some of the HOAs have lawsuits (Vicenza, Lucera). I’m seriously wondering about the health of some of these HOAs and I have yet to figure out what happens if they go bankrupt. State takes them over?

Overall, I think some of them pencil out rent wise today. If you screen the tenant well, hopefully they won’t trash the place and pay on time. There are some good deals out there and some make sense. USCD does not have a reputation as a party school and I would think the students renting are responsible.

The only unknown factor is if rents decline.

SDDT had a headline:

“San Diego County’s apartment vacancy rate rising, as rents decline
The apartment vacancy rate has surpassed the 5 percent mark for the first time in about 15 years.”

I didn’t get to read the whole story.

[jpinpb]

I think rent prices are going down. On one of those threads someone posted about USCD adding more student housing.

Banks seem to like cash deal only, holding up sales, besides the normal short sales. The occupancy rate also affects banks lending. Some of the HOAs have lawsuits (Vicenza, Lucera). I’m seriously wondering about the health of some of these HOAs and I have yet to figure out what happens if they go bankrupt. State takes them over?

Overall, I think some of them pencil out rent wise today. If you screen the tenant well, hopefully they won’t trash the place and pay on time. There are some good deals out there and some make sense. USCD does not have a reputation as a party school and I would think the students renting are responsible.

The only unknown factor is if rents decline.

SDDT had a headline:

“San Diego County’s apartment vacancy rate rising, as rents decline
The apartment vacancy rate has surpassed the 5 percent mark for the first time in about 15 years.”

I didn’t get to read the whole story.

[jpinpb]

I think rent prices are going down. On one of those threads someone posted about USCD adding more student housing.

Banks seem to like cash deal only, holding up sales, besides the normal short sales. The occupancy rate also affects banks lending. Some of the HOAs have lawsuits (Vicenza, Lucera). I’m seriously wondering about the health of some of these HOAs and I have yet to figure out what happens if they go bankrupt. State takes them over?

Overall, I think some of them pencil out rent wise today. If you screen the tenant well, hopefully they won’t trash the place and pay on time. There are some good deals out there and some make sense. USCD does not have a reputation as a party school and I would think the students renting are responsible.

The only unknown factor is if rents decline.

SDDT had a headline:

“San Diego County’s apartment vacancy rate rising, as rents decline
The apartment vacancy rate has surpassed the 5 percent mark for the first time in about 15 years.”

I didn’t get to read the whole story.

[jpinpb]

I think rent prices are going down. On one of those threads someone posted about USCD adding more student housing.

Banks seem to like cash deal only, holding up sales, besides the normal short sales. The occupancy rate also affects banks lending. Some of the HOAs have lawsuits (Vicenza, Lucera). I’m seriously wondering about the health of some of these HOAs and I have yet to figure out what happens if they go bankrupt. State takes them over?

Overall, I think some of them pencil out rent wise today. If you screen the tenant well, hopefully they won’t trash the place and pay on time. There are some good deals out there and some make sense. USCD does not have a reputation as a party school and I would think the students renting are responsible.

The only unknown factor is if rents decline.

SDDT had a headline:

“San Diego County’s apartment vacancy rate rising, as rents decline
The apartment vacancy rate has surpassed the 5 percent mark for the first time in about 15 years.”

I didn’t get to read the whole story.

[Scarlett]

Thanks, JP, and especially for the excellent threads on SDL keeping track of those UTC condos!

[quote=jpinpb]I think rent prices are going down. On one of those threads someone posted about USCD adding more student housing.

Banks seem to like cash deal only, holding up sales, besides the normal short sales. The occupancy rate also affects banks lending. Some of the HOAs have lawsuits (Vicenza, Lucera). I’m seriously wondering about the health of some of these HOAs and I have yet to figure out what happens if they go bankrupt. State takes them over?

Overall, I think some of them pencil out rent wise today. If you screen the tenant well, hopefully they won’t trash the place and pay on time. There are some good deals out there and some make sense. USCD does not have a reputation as a party school and I would think the students renting are responsible.

The only unknown factor is if rents decline.

SDDT had a headline:

“San Diego County’s apartment vacancy rate rising, as rents decline
The apartment vacancy rate has surpassed the 5 percent mark for the first time in about 15 years.”

I didn’t get to read the whole story.

[/quote]

I saw that one too – just the headline though.
I personally prefer Verano, especially location wise, but it’s still a little overpriced IMO. Regents is still way overpriced.

I think that most of the conversion should actually convert back to rentals, because that’s what most will be anyway.

[Scarlett]

Thanks, JP, and especially for the excellent threads on SDL keeping track of those UTC condos!

[quote=jpinpb]I think rent prices are going down. On one of those threads someone posted about USCD adding more student housing.

Banks seem to like cash deal only, holding up sales, besides the normal short sales. The occupancy rate also affects banks lending. Some of the HOAs have lawsuits (Vicenza, Lucera). I’m seriously wondering about the health of some of these HOAs and I have yet to figure out what happens if they go bankrupt. State takes them over?

Overall, I think some of them pencil out rent wise today. If you screen the tenant well, hopefully they won’t trash the place and pay on time. There are some good deals out there and some make sense. USCD does not have a reputation as a party school and I would think the students renting are responsible.

The only unknown factor is if rents decline.

SDDT had a headline:

“San Diego County’s apartment vacancy rate rising, as rents decline
The apartment vacancy rate has surpassed the 5 percent mark for the first time in about 15 years.”

I didn’t get to read the whole story.

[/quote]

I saw that one too – just the headline though.
I personally prefer Verano, especially location wise, but it’s still a little overpriced IMO. Regents is still way overpriced.

I think that most of the conversion should actually convert back to rentals, because that’s what most will be anyway.

[Scarlett]

Thanks, JP, and especially for the excellent threads on SDL keeping track of those UTC condos!

[quote=jpinpb]I think rent prices are going down. On one of those threads someone posted about USCD adding more student housing.

Banks seem to like cash deal only, holding up sales, besides the normal short sales. The occupancy rate also affects banks lending. Some of the HOAs have lawsuits (Vicenza, Lucera). I’m seriously wondering about the health of some of these HOAs and I have yet to figure out what happens if they go bankrupt. State takes them over?

Overall, I think some of them pencil out rent wise today. If you screen the tenant well, hopefully they won’t trash the place and pay on time. There are some good deals out there and some make sense. USCD does not have a reputation as a party school and I would think the students renting are responsible.

The only unknown factor is if rents decline.

SDDT had a headline:

“San Diego County’s apartment vacancy rate rising, as rents decline
The apartment vacancy rate has surpassed the 5 percent mark for the first time in about 15 years.”

I didn’t get to read the whole story.

[/quote]

I saw that one too – just the headline though.
I personally prefer Verano, especially location wise, but it’s still a little overpriced IMO. Regents is still way overpriced.

I think that most of the conversion should actually convert back to rentals, because that’s what most will be anyway.

[Scarlett]

Thanks, JP, and especially for the excellent threads on SDL keeping track of those UTC condos!

[quote=jpinpb]I think rent prices are going down. On one of those threads someone posted about USCD adding more student housing.

Banks seem to like cash deal only, holding up sales, besides the normal short sales. The occupancy rate also affects banks lending. Some of the HOAs have lawsuits (Vicenza, Lucera). I’m seriously wondering about the health of some of these HOAs and I have yet to figure out what happens if they go bankrupt. State takes them over?

Overall, I think some of them pencil out rent wise today. If you screen the tenant well, hopefully they won’t trash the place and pay on time. There are some good deals out there and some make sense. USCD does not have a reputation as a party school and I would think the students renting are responsible.

The only unknown factor is if rents decline.

SDDT had a headline:

“San Diego County’s apartment vacancy rate rising, as rents decline
The apartment vacancy rate has surpassed the 5 percent mark for the first time in about 15 years.”

I didn’t get to read the whole story.

[/quote]

I saw that one too – just the headline though.
I personally prefer Verano, especially location wise, but it’s still a little overpriced IMO. Regents is still way overpriced.

I think that most of the conversion should actually convert back to rentals, because that’s what most will be anyway.

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