Buying a small condo in UTC as an investment?

[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.

[jpinpb]

I should add another unknown factor is what the banks will do w/what they’re holding. If they will re-work the loans and do loan mods and principle reductions. There are a lot of NODs that continue to come in. Or if they sell a bunch of units in bulk to investors. But eventually the investors will have to release them and list them, unless they take to renting them out. There is a lot of uncertainty.

I agree that Verano and Regents are still high. They have come down considerably since peak. Vicenza, Venetian and Lucera are the loss condo leaders and they are starting to affect comp sales/prices in Verano and Regents and other surrounding condos. To a lesser degree I’m starting to see a little pain even in Capri.

[jpinpb]

I should add another unknown factor is what the banks will do w/what they’re holding. If they will re-work the loans and do loan mods and principle reductions. There are a lot of NODs that continue to come in. Or if they sell a bunch of units in bulk to investors. But eventually the investors will have to release them and list them, unless they take to renting them out. There is a lot of uncertainty.

I agree that Verano and Regents are still high. They have come down considerably since peak. Vicenza, Venetian and Lucera are the loss condo leaders and they are starting to affect comp sales/prices in Verano and Regents and other surrounding condos. To a lesser degree I’m starting to see a little pain even in Capri.

[jpinpb]

I should add another unknown factor is what the banks will do w/what they’re holding. If they will re-work the loans and do loan mods and principle reductions. There are a lot of NODs that continue to come in. Or if they sell a bunch of units in bulk to investors. But eventually the investors will have to release them and list them, unless they take to renting them out. There is a lot of uncertainty.

I agree that Verano and Regents are still high. They have come down considerably since peak. Vicenza, Venetian and Lucera are the loss condo leaders and they are starting to affect comp sales/prices in Verano and Regents and other surrounding condos. To a lesser degree I’m starting to see a little pain even in Capri.

[jpinpb]

I should add another unknown factor is what the banks will do w/what they’re holding. If they will re-work the loans and do loan mods and principle reductions. There are a lot of NODs that continue to come in. Or if they sell a bunch of units in bulk to investors. But eventually the investors will have to release them and list them, unless they take to renting them out. There is a lot of uncertainty.

I agree that Verano and Regents are still high. They have come down considerably since peak. Vicenza, Venetian and Lucera are the loss condo leaders and they are starting to affect comp sales/prices in Verano and Regents and other surrounding condos. To a lesser degree I’m starting to see a little pain even in Capri.

[jpinpb]

I should add another unknown factor is what the banks will do w/what they’re holding. If they will re-work the loans and do loan mods and principle reductions. There are a lot of NODs that continue to come in. Or if they sell a bunch of units in bulk to investors. But eventually the investors will have to release them and list them, unless they take to renting them out. There is a lot of uncertainty.

I agree that Verano and Regents are still high. They have come down considerably since peak. Vicenza, Venetian and Lucera are the loss condo leaders and they are starting to affect comp sales/prices in Verano and Regents and other surrounding condos. To a lesser degree I’m starting to see a little pain even in Capri.

[SD Realtor]

Scarlett if you are thinking about buying a rental property you need to set your goals. There are people who post here who own rentals and they can tell you thier experiences. You have to think about goals such as appreciation verses cash flow. Are you in for the long run or is it a short run deal? Are you going to live there for awhile, and then rent it in the future? Alot of those kinds of questions need to be answered.

Once you have your goals established, then you can think about locations, types of properties and stuff like that. You may find that the numbers play out better for a small condo in Oceanside or Mission Valley, or you may not. It takes some time and research. Regarding UTC, I think there is still room for downward pressure in that entire area. True there is alot of demand there for a variety of reasons. There is a heck of alot of employment within 5 miles of the area as well so it is not just students. Still though, as far as investments go, to me it does not seem like the right play and needs more time to cook.

[SD Realtor]

Scarlett if you are thinking about buying a rental property you need to set your goals. There are people who post here who own rentals and they can tell you thier experiences. You have to think about goals such as appreciation verses cash flow. Are you in for the long run or is it a short run deal? Are you going to live there for awhile, and then rent it in the future? Alot of those kinds of questions need to be answered.

Once you have your goals established, then you can think about locations, types of properties and stuff like that. You may find that the numbers play out better for a small condo in Oceanside or Mission Valley, or you may not. It takes some time and research. Regarding UTC, I think there is still room for downward pressure in that entire area. True there is alot of demand there for a variety of reasons. There is a heck of alot of employment within 5 miles of the area as well so it is not just students. Still though, as far as investments go, to me it does not seem like the right play and needs more time to cook.

[SD Realtor]

Scarlett if you are thinking about buying a rental property you need to set your goals. There are people who post here who own rentals and they can tell you thier experiences. You have to think about goals such as appreciation verses cash flow. Are you in for the long run or is it a short run deal? Are you going to live there for awhile, and then rent it in the future? Alot of those kinds of questions need to be answered.

Once you have your goals established, then you can think about locations, types of properties and stuff like that. You may find that the numbers play out better for a small condo in Oceanside or Mission Valley, or you may not. It takes some time and research. Regarding UTC, I think there is still room for downward pressure in that entire area. True there is alot of demand there for a variety of reasons. There is a heck of alot of employment within 5 miles of the area as well so it is not just students. Still though, as far as investments go, to me it does not seem like the right play and needs more time to cook.

[SD Realtor]

Scarlett if you are thinking about buying a rental property you need to set your goals. There are people who post here who own rentals and they can tell you thier experiences. You have to think about goals such as appreciation verses cash flow. Are you in for the long run or is it a short run deal? Are you going to live there for awhile, and then rent it in the future? Alot of those kinds of questions need to be answered.

Once you have your goals established, then you can think about locations, types of properties and stuff like that. You may find that the numbers play out better for a small condo in Oceanside or Mission Valley, or you may not. It takes some time and research. Regarding UTC, I think there is still room for downward pressure in that entire area. True there is alot of demand there for a variety of reasons. There is a heck of alot of employment within 5 miles of the area as well so it is not just students. Still though, as far as investments go, to me it does not seem like the right play and needs more time to cook.

[SD Realtor]

Scarlett if you are thinking about buying a rental property you need to set your goals. There are people who post here who own rentals and they can tell you thier experiences. You have to think about goals such as appreciation verses cash flow. Are you in for the long run or is it a short run deal? Are you going to live there for awhile, and then rent it in the future? Alot of those kinds of questions need to be answered.

Once you have your goals established, then you can think about locations, types of properties and stuff like that. You may find that the numbers play out better for a small condo in Oceanside or Mission Valley, or you may not. It takes some time and research. Regarding UTC, I think there is still room for downward pressure in that entire area. True there is alot of demand there for a variety of reasons. There is a heck of alot of employment within 5 miles of the area as well so it is not just students. Still though, as far as investments go, to me it does not seem like the right play and needs more time to cook.

[Coronita]

Scarlett,

Pardon me for asking, but I thought you were more set on buying a primary home first. Do you really want to juggle a rental in right now at the same time you’re considering a primary?

I suppose prices might seem like a better deal, but I really don’t think you’re going to be missing the boat or anything, with the glut of condo converts all over the place.

Just my 2 cents.

[Coronita]

Scarlett,

Pardon me for asking, but I thought you were more set on buying a primary home first. Do you really want to juggle a rental in right now at the same time you’re considering a primary?

I suppose prices might seem like a better deal, but I really don’t think you’re going to be missing the boat or anything, with the glut of condo converts all over the place.

Just my 2 cents.

[Coronita]

Scarlett,

Pardon me for asking, but I thought you were more set on buying a primary home first. Do you really want to juggle a rental in right now at the same time you’re considering a primary?

I suppose prices might seem like a better deal, but I really don’t think you’re going to be missing the boat or anything, with the glut of condo converts all over the place.

Just my 2 cents.

[Coronita]

Scarlett,

Pardon me for asking, but I thought you were more set on buying a primary home first. Do you really want to juggle a rental in right now at the same time you’re considering a primary?

I suppose prices might seem like a better deal, but I really don’t think you’re going to be missing the boat or anything, with the glut of condo converts all over the place.

Just my 2 cents.

[Author]

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