Can you feel the shift?

[cashflow]

I don’t think it will ever be a ghost town or homes condemned…I think that’s even too bearish for me! Temecula is a really nice community for families still and will continue to be, I think the other areas of Riverside county will be hurt big time as Temecula goes down, more will be able to afford to live there…no incentive to live in the middle of nowhere in Hemet or Moreno Valley where people were pushed out to as they were priced out.

TG, Didn’t you post just a few days ago that you couldn’t believe the pace of the NOD’s coming in over the past days and week? How can you state that you think it would be bottoming out?

I hate to admit it but we’ve been actively looking, only in that our lease is almost up and we thought, well what the hell if we can lowball a screaming deal outta a bank, than we’ll do it. The spring bounce though has kinda put some breaks on our plan. All the homes in the high 200-low 300’s in Temecula have so many people touring, it’s like it’s boomtown again (at least from our observations). I’ve seen some other homes that were priced at lower per sq/ft than those posted.
What about this one at 100/sqft.?
http://www.redfin.com/stingray/do/printable-listing?listing-id=1609827
It’s in Redhawk which is nice, but I guess it backs to a street, so not ideal location. This generated lots of interest.
From our observations the buyers that are out there in the lower price range jumping on these properties appear to be mostly first time homebuyers, maybe previously priced out and now are excited they can finally jump in, so they are. We personally believe that this will be a short wave of able buyers that will dry up as quickly as it started. Just not that many able buyers out there anymore….but only time will tell.
On another note, any ideas on how to search out if there’s a Foreclosure or NOD on a particular property around there?
Drove by this VERY vacant home and wondering what the deal is? Address: 44381 Coronado (or it may be Ynez address as it faces Ynez but driveway is on Coronado)
If you have any access and insight let me know!

[temeculaguy]

It’s way past my bedtime so I’ll do some more research tomorrow cashflow, but “DO NOT BUY THE HOUSE ON ALMAZON.” Even for under 100 a square, it is the worst lot in redhawk. It doesn’t just back to a street, it faces one practically, the only house I know of that gets headlights from an arterial route and is five feet from lawn to 50 mph diagonally. It only has a few sales listed but in ten years it is rarely not been for sale, how do I know, I can see what they are eating for dinner every night on my way home and they know when I got my new turbo, probably to the day.

Make no mistake kiddies, there is a difference between 100 a square in a 3500-4000 ft house and a 1700 sq ft house w/a 3 car or a 1/4 acre, there’s more to valuation that sq ft and the location of the cheapies has changed. My thoughts on a bottom were anectdotal, I am just suprised to see the 200’s in things other than a 1300-1400 sq 3/2 2 car in a crappy tract of mostly rentals, those I listed are creeping up the hill toward redhwak and morgan (one was in it) and they are getting bigger, when redhwak starts to get into the 2’s on a regular basis for something other than ringside to nascar, then I will call it. Those numbers for those areas is below 2003 pricing, if those prices hit redhawk it will be 1998 prices, even I will be helpless. All of those that I posted rent for 1700-2200, but unless you live here it may be hard to tell just based on sq ft. My observation about the shift is that the 1 in a 100 super low price has become the norm this week, not one new listed repo dared to use a 4 in the front of the price, they are all going low to start, a shift in the way things had been done. A welcomed shift.

Perhaps the banks are aware of the lanslide of repos in the pipeline, but I’ve never seen them put more than five minutes of effort into pricing until now. And I highly doubt banks can forecast anything, my theory is that the new comps are setting the mark and they are just blindly undercutting it. I think Rustico said it best about “sell it now” or dine on feces.

matt, trying not to be too bullish but I have a friend who pays 1600/mo for 1300 sq in paloma, almost the same house that you posted but theirs is smaller and they are convinced it is a deal. 160 is the bottom for that one because I’ll buy it at 100x rent since it will be cash nuetral/positive day one. The point is, that house is only 60k from nuclear winter, I’m doubting we have to wait for 2011 up here, probably wont have to wait for 2009 at this rate and that house may be 160-180 by years end. I can currently buy the place I rent for $200/mo less than I rent it for not counting the tax deduction, good thing I don’t like it or I wouldn’t even be posting, I’d be painting. It cannot be ignored that it has become cheaper to buy than rent in some cases up here. Further evidence that 2009 might just be the overcorrection here, not 2011.

Either way, it feels like there is a shift about to happen. I’ll bet you a beer that the shift won’t be contained to Temecula.

[temeculaguy]

It’s way past my bedtime so I’ll do some more research tomorrow cashflow, but “DO NOT BUY THE HOUSE ON ALMAZON.” Even for under 100 a square, it is the worst lot in redhawk. It doesn’t just back to a street, it faces one practically, the only house I know of that gets headlights from an arterial route and is five feet from lawn to 50 mph diagonally. It only has a few sales listed but in ten years it is rarely not been for sale, how do I know, I can see what they are eating for dinner every night on my way home and they know when I got my new turbo, probably to the day.

Make no mistake kiddies, there is a difference between 100 a square in a 3500-4000 ft house and a 1700 sq ft house w/a 3 car or a 1/4 acre, there’s more to valuation that sq ft and the location of the cheapies has changed. My thoughts on a bottom were anectdotal, I am just suprised to see the 200’s in things other than a 1300-1400 sq 3/2 2 car in a crappy tract of mostly rentals, those I listed are creeping up the hill toward redhwak and morgan (one was in it) and they are getting bigger, when redhwak starts to get into the 2’s on a regular basis for something other than ringside to nascar, then I will call it. Those numbers for those areas is below 2003 pricing, if those prices hit redhawk it will be 1998 prices, even I will be helpless. All of those that I posted rent for 1700-2200, but unless you live here it may be hard to tell just based on sq ft. My observation about the shift is that the 1 in a 100 super low price has become the norm this week, not one new listed repo dared to use a 4 in the front of the price, they are all going low to start, a shift in the way things had been done. A welcomed shift.

Perhaps the banks are aware of the lanslide of repos in the pipeline, but I’ve never seen them put more than five minutes of effort into pricing until now. And I highly doubt banks can forecast anything, my theory is that the new comps are setting the mark and they are just blindly undercutting it. I think Rustico said it best about “sell it now” or dine on feces.

matt, trying not to be too bullish but I have a friend who pays 1600/mo for 1300 sq in paloma, almost the same house that you posted but theirs is smaller and they are convinced it is a deal. 160 is the bottom for that one because I’ll buy it at 100x rent since it will be cash nuetral/positive day one. The point is, that house is only 60k from nuclear winter, I’m doubting we have to wait for 2011 up here, probably wont have to wait for 2009 at this rate and that house may be 160-180 by years end. I can currently buy the place I rent for $200/mo less than I rent it for not counting the tax deduction, good thing I don’t like it or I wouldn’t even be posting, I’d be painting. It cannot be ignored that it has become cheaper to buy than rent in some cases up here. Further evidence that 2009 might just be the overcorrection here, not 2011.

Either way, it feels like there is a shift about to happen. I’ll bet you a beer that the shift won’t be contained to Temecula.

[temeculaguy]

It’s way past my bedtime so I’ll do some more research tomorrow cashflow, but “DO NOT BUY THE HOUSE ON ALMAZON.” Even for under 100 a square, it is the worst lot in redhawk. It doesn’t just back to a street, it faces one practically, the only house I know of that gets headlights from an arterial route and is five feet from lawn to 50 mph diagonally. It only has a few sales listed but in ten years it is rarely not been for sale, how do I know, I can see what they are eating for dinner every night on my way home and they know when I got my new turbo, probably to the day.

Make no mistake kiddies, there is a difference between 100 a square in a 3500-4000 ft house and a 1700 sq ft house w/a 3 car or a 1/4 acre, there’s more to valuation that sq ft and the location of the cheapies has changed. My thoughts on a bottom were anectdotal, I am just suprised to see the 200’s in things other than a 1300-1400 sq 3/2 2 car in a crappy tract of mostly rentals, those I listed are creeping up the hill toward redhwak and morgan (one was in it) and they are getting bigger, when redhwak starts to get into the 2’s on a regular basis for something other than ringside to nascar, then I will call it. Those numbers for those areas is below 2003 pricing, if those prices hit redhawk it will be 1998 prices, even I will be helpless. All of those that I posted rent for 1700-2200, but unless you live here it may be hard to tell just based on sq ft. My observation about the shift is that the 1 in a 100 super low price has become the norm this week, not one new listed repo dared to use a 4 in the front of the price, they are all going low to start, a shift in the way things had been done. A welcomed shift.

Perhaps the banks are aware of the lanslide of repos in the pipeline, but I’ve never seen them put more than five minutes of effort into pricing until now. And I highly doubt banks can forecast anything, my theory is that the new comps are setting the mark and they are just blindly undercutting it. I think Rustico said it best about “sell it now” or dine on feces.

matt, trying not to be too bullish but I have a friend who pays 1600/mo for 1300 sq in paloma, almost the same house that you posted but theirs is smaller and they are convinced it is a deal. 160 is the bottom for that one because I’ll buy it at 100x rent since it will be cash nuetral/positive day one. The point is, that house is only 60k from nuclear winter, I’m doubting we have to wait for 2011 up here, probably wont have to wait for 2009 at this rate and that house may be 160-180 by years end. I can currently buy the place I rent for $200/mo less than I rent it for not counting the tax deduction, good thing I don’t like it or I wouldn’t even be posting, I’d be painting. It cannot be ignored that it has become cheaper to buy than rent in some cases up here. Further evidence that 2009 might just be the overcorrection here, not 2011.

Either way, it feels like there is a shift about to happen. I’ll bet you a beer that the shift won’t be contained to Temecula.

[temeculaguy]

It’s way past my bedtime so I’ll do some more research tomorrow cashflow, but “DO NOT BUY THE HOUSE ON ALMAZON.” Even for under 100 a square, it is the worst lot in redhawk. It doesn’t just back to a street, it faces one practically, the only house I know of that gets headlights from an arterial route and is five feet from lawn to 50 mph diagonally. It only has a few sales listed but in ten years it is rarely not been for sale, how do I know, I can see what they are eating for dinner every night on my way home and they know when I got my new turbo, probably to the day.

Make no mistake kiddies, there is a difference between 100 a square in a 3500-4000 ft house and a 1700 sq ft house w/a 3 car or a 1/4 acre, there’s more to valuation that sq ft and the location of the cheapies has changed. My thoughts on a bottom were anectdotal, I am just suprised to see the 200’s in things other than a 1300-1400 sq 3/2 2 car in a crappy tract of mostly rentals, those I listed are creeping up the hill toward redhwak and morgan (one was in it) and they are getting bigger, when redhwak starts to get into the 2’s on a regular basis for something other than ringside to nascar, then I will call it. Those numbers for those areas is below 2003 pricing, if those prices hit redhawk it will be 1998 prices, even I will be helpless. All of those that I posted rent for 1700-2200, but unless you live here it may be hard to tell just based on sq ft. My observation about the shift is that the 1 in a 100 super low price has become the norm this week, not one new listed repo dared to use a 4 in the front of the price, they are all going low to start, a shift in the way things had been done. A welcomed shift.

Perhaps the banks are aware of the lanslide of repos in the pipeline, but I’ve never seen them put more than five minutes of effort into pricing until now. And I highly doubt banks can forecast anything, my theory is that the new comps are setting the mark and they are just blindly undercutting it. I think Rustico said it best about “sell it now” or dine on feces.

matt, trying not to be too bullish but I have a friend who pays 1600/mo for 1300 sq in paloma, almost the same house that you posted but theirs is smaller and they are convinced it is a deal. 160 is the bottom for that one because I’ll buy it at 100x rent since it will be cash nuetral/positive day one. The point is, that house is only 60k from nuclear winter, I’m doubting we have to wait for 2011 up here, probably wont have to wait for 2009 at this rate and that house may be 160-180 by years end. I can currently buy the place I rent for $200/mo less than I rent it for not counting the tax deduction, good thing I don’t like it or I wouldn’t even be posting, I’d be painting. It cannot be ignored that it has become cheaper to buy than rent in some cases up here. Further evidence that 2009 might just be the overcorrection here, not 2011.

Either way, it feels like there is a shift about to happen. I’ll bet you a beer that the shift won’t be contained to Temecula.

[temeculaguy]

It’s way past my bedtime so I’ll do some more research tomorrow cashflow, but “DO NOT BUY THE HOUSE ON ALMAZON.” Even for under 100 a square, it is the worst lot in redhawk. It doesn’t just back to a street, it faces one practically, the only house I know of that gets headlights from an arterial route and is five feet from lawn to 50 mph diagonally. It only has a few sales listed but in ten years it is rarely not been for sale, how do I know, I can see what they are eating for dinner every night on my way home and they know when I got my new turbo, probably to the day.

Make no mistake kiddies, there is a difference between 100 a square in a 3500-4000 ft house and a 1700 sq ft house w/a 3 car or a 1/4 acre, there’s more to valuation that sq ft and the location of the cheapies has changed. My thoughts on a bottom were anectdotal, I am just suprised to see the 200’s in things other than a 1300-1400 sq 3/2 2 car in a crappy tract of mostly rentals, those I listed are creeping up the hill toward redhwak and morgan (one was in it) and they are getting bigger, when redhwak starts to get into the 2’s on a regular basis for something other than ringside to nascar, then I will call it. Those numbers for those areas is below 2003 pricing, if those prices hit redhawk it will be 1998 prices, even I will be helpless. All of those that I posted rent for 1700-2200, but unless you live here it may be hard to tell just based on sq ft. My observation about the shift is that the 1 in a 100 super low price has become the norm this week, not one new listed repo dared to use a 4 in the front of the price, they are all going low to start, a shift in the way things had been done. A welcomed shift.

Perhaps the banks are aware of the lanslide of repos in the pipeline, but I’ve never seen them put more than five minutes of effort into pricing until now. And I highly doubt banks can forecast anything, my theory is that the new comps are setting the mark and they are just blindly undercutting it. I think Rustico said it best about “sell it now” or dine on feces.

matt, trying not to be too bullish but I have a friend who pays 1600/mo for 1300 sq in paloma, almost the same house that you posted but theirs is smaller and they are convinced it is a deal. 160 is the bottom for that one because I’ll buy it at 100x rent since it will be cash nuetral/positive day one. The point is, that house is only 60k from nuclear winter, I’m doubting we have to wait for 2011 up here, probably wont have to wait for 2009 at this rate and that house may be 160-180 by years end. I can currently buy the place I rent for $200/mo less than I rent it for not counting the tax deduction, good thing I don’t like it or I wouldn’t even be posting, I’d be painting. It cannot be ignored that it has become cheaper to buy than rent in some cases up here. Further evidence that 2009 might just be the overcorrection here, not 2011.

Either way, it feels like there is a shift about to happen. I’ll bet you a beer that the shift won’t be contained to Temecula.

[temeculaguy]

Screw sleep, cash, check the location on zillow, the highest number on coronado is 44011 and the Ynez addresses are in the 29000’s so I can’t figure out which house it is, if you look at the map maybe you can figure out which one it is. My insight, I love that area, I love looking at that is, taking care of acerage is not my thing. It’s not close to where the hospital is going and it’s far enough from the freeway but if all things were equal I wouldn’t pick one that faces Ynez, it’s busy now, when the hospital goes in on that street it can only get worse, try for something a few blocks off ynez, but either way those are sweet.

This one is close to what you descriped location wise

http://www.redfin.com/stingray/do/printable-listing?listing-id=1614804

It’s one of the more plain houses in the neighborhood but it is sub 2003 pricing.

But it is one of the cheapest in the hood, go about three houses back and they look like this

http://www.redfin.com/stingray/do/printable-listing?listing-id=1595421

http://www.redfin.com/stingray/do/printable-listing?listing-id=1403179

This is about the cheapest one around and still 2.5 acres, but your pad will look like the grounskeeper’s house compared to the neighbors. That’s not gonna get you chicks.

http://www.redfin.com/stingray/do/printable-listing?listing-id=1382292

[temeculaguy]

Screw sleep, cash, check the location on zillow, the highest number on coronado is 44011 and the Ynez addresses are in the 29000’s so I can’t figure out which house it is, if you look at the map maybe you can figure out which one it is. My insight, I love that area, I love looking at that is, taking care of acerage is not my thing. It’s not close to where the hospital is going and it’s far enough from the freeway but if all things were equal I wouldn’t pick one that faces Ynez, it’s busy now, when the hospital goes in on that street it can only get worse, try for something a few blocks off ynez, but either way those are sweet.

This one is close to what you descriped location wise

http://www.redfin.com/stingray/do/printable-listing?listing-id=1614804

It’s one of the more plain houses in the neighborhood but it is sub 2003 pricing.

But it is one of the cheapest in the hood, go about three houses back and they look like this

http://www.redfin.com/stingray/do/printable-listing?listing-id=1595421

http://www.redfin.com/stingray/do/printable-listing?listing-id=1403179

This is about the cheapest one around and still 2.5 acres, but your pad will look like the grounskeeper’s house compared to the neighbors. That’s not gonna get you chicks.

http://www.redfin.com/stingray/do/printable-listing?listing-id=1382292

[temeculaguy]

Screw sleep, cash, check the location on zillow, the highest number on coronado is 44011 and the Ynez addresses are in the 29000’s so I can’t figure out which house it is, if you look at the map maybe you can figure out which one it is. My insight, I love that area, I love looking at that is, taking care of acerage is not my thing. It’s not close to where the hospital is going and it’s far enough from the freeway but if all things were equal I wouldn’t pick one that faces Ynez, it’s busy now, when the hospital goes in on that street it can only get worse, try for something a few blocks off ynez, but either way those are sweet.

This one is close to what you descriped location wise

http://www.redfin.com/stingray/do/printable-listing?listing-id=1614804

It’s one of the more plain houses in the neighborhood but it is sub 2003 pricing.

But it is one of the cheapest in the hood, go about three houses back and they look like this

http://www.redfin.com/stingray/do/printable-listing?listing-id=1595421

http://www.redfin.com/stingray/do/printable-listing?listing-id=1403179

This is about the cheapest one around and still 2.5 acres, but your pad will look like the grounskeeper’s house compared to the neighbors. That’s not gonna get you chicks.

http://www.redfin.com/stingray/do/printable-listing?listing-id=1382292

[temeculaguy]

Screw sleep, cash, check the location on zillow, the highest number on coronado is 44011 and the Ynez addresses are in the 29000’s so I can’t figure out which house it is, if you look at the map maybe you can figure out which one it is. My insight, I love that area, I love looking at that is, taking care of acerage is not my thing. It’s not close to where the hospital is going and it’s far enough from the freeway but if all things were equal I wouldn’t pick one that faces Ynez, it’s busy now, when the hospital goes in on that street it can only get worse, try for something a few blocks off ynez, but either way those are sweet.

This one is close to what you descriped location wise

http://www.redfin.com/stingray/do/printable-listing?listing-id=1614804

It’s one of the more plain houses in the neighborhood but it is sub 2003 pricing.

But it is one of the cheapest in the hood, go about three houses back and they look like this

http://www.redfin.com/stingray/do/printable-listing?listing-id=1595421

http://www.redfin.com/stingray/do/printable-listing?listing-id=1403179

This is about the cheapest one around and still 2.5 acres, but your pad will look like the grounskeeper’s house compared to the neighbors. That’s not gonna get you chicks.

http://www.redfin.com/stingray/do/printable-listing?listing-id=1382292

[temeculaguy]

Screw sleep, cash, check the location on zillow, the highest number on coronado is 44011 and the Ynez addresses are in the 29000’s so I can’t figure out which house it is, if you look at the map maybe you can figure out which one it is. My insight, I love that area, I love looking at that is, taking care of acerage is not my thing. It’s not close to where the hospital is going and it’s far enough from the freeway but if all things were equal I wouldn’t pick one that faces Ynez, it’s busy now, when the hospital goes in on that street it can only get worse, try for something a few blocks off ynez, but either way those are sweet.

This one is close to what you descriped location wise

http://www.redfin.com/stingray/do/printable-listing?listing-id=1614804

It’s one of the more plain houses in the neighborhood but it is sub 2003 pricing.

But it is one of the cheapest in the hood, go about three houses back and they look like this

http://www.redfin.com/stingray/do/printable-listing?listing-id=1595421

http://www.redfin.com/stingray/do/printable-listing?listing-id=1403179

This is about the cheapest one around and still 2.5 acres, but your pad will look like the grounskeeper’s house compared to the neighbors. That’s not gonna get you chicks.

http://www.redfin.com/stingray/do/printable-listing?listing-id=1382292

[hipmatt]

TG, thanks for the responses. I appreciate where you are coming from, and while I am surprised at your new more bullish stance, I respect it.

I would love to see some examples of the home you rent. (I fully understand not giving your addy on line, but maybe a neighboor or any other example) And I would love to see how it is penciling out as a profitable renter. BTW you said that of the homes you listed , that they could rent for 1700-2200…. hmm anything over $2000 is wishful thinking. I wouldn’t pay more than $1700 myself to rent any of those, and I pay $1800 to rent a much larger/nicer home in Harveston(you know I am not a Harveston fanboy either) which has more amenities and a MUCH better location to the activities and hot locations in this town.

I guess my theory is that rents WILL drop in the Temecula area and I’m already seeing it / hearing about it. I know investors/landlords who are having a hell of a time keeping decent, paying tenants in their homes. I know two different landlords that have lost/are loosing homes to foreclosure, because they thought they were mini Donald Trumps, but now they can’t get the tenants to pay. I think a lot of the rental prices are a bit wishful thinking, and with the vast selection of rentals, and the fact that many up here will be forced to make lifestyle changes, means they will be renting for less. I know people who are renting nice homes for under 1600, and recently. My buddy and his co-worker just signed a 1 year lease on a 2200sqft two story in starlight ridge for $1550. Now it wasn’t that upgraded or trendy, but 4 good rooms, a nice street, a big lot, and a very great location central to everything in this area. Another just signed a $1600 in one of these homes….
http://www.redfin.com/stingray/do/printable-listing?listing-id=1600757

One last thing that I think you are assuming is that these people have the down payment to buy these homes that are close to being break even rentals. I fully agree about the shift though.

[hipmatt]

TG, thanks for the responses. I appreciate where you are coming from, and while I am surprised at your new more bullish stance, I respect it.

I would love to see some examples of the home you rent. (I fully understand not giving your addy on line, but maybe a neighboor or any other example) And I would love to see how it is penciling out as a profitable renter. BTW you said that of the homes you listed , that they could rent for 1700-2200…. hmm anything over $2000 is wishful thinking. I wouldn’t pay more than $1700 myself to rent any of those, and I pay $1800 to rent a much larger/nicer home in Harveston(you know I am not a Harveston fanboy either) which has more amenities and a MUCH better location to the activities and hot locations in this town.

I guess my theory is that rents WILL drop in the Temecula area and I’m already seeing it / hearing about it. I know investors/landlords who are having a hell of a time keeping decent, paying tenants in their homes. I know two different landlords that have lost/are loosing homes to foreclosure, because they thought they were mini Donald Trumps, but now they can’t get the tenants to pay. I think a lot of the rental prices are a bit wishful thinking, and with the vast selection of rentals, and the fact that many up here will be forced to make lifestyle changes, means they will be renting for less. I know people who are renting nice homes for under 1600, and recently. My buddy and his co-worker just signed a 1 year lease on a 2200sqft two story in starlight ridge for $1550. Now it wasn’t that upgraded or trendy, but 4 good rooms, a nice street, a big lot, and a very great location central to everything in this area. Another just signed a $1600 in one of these homes….
http://www.redfin.com/stingray/do/printable-listing?listing-id=1600757

One last thing that I think you are assuming is that these people have the down payment to buy these homes that are close to being break even rentals. I fully agree about the shift though.

[hipmatt]

TG, thanks for the responses. I appreciate where you are coming from, and while I am surprised at your new more bullish stance, I respect it.

I would love to see some examples of the home you rent. (I fully understand not giving your addy on line, but maybe a neighboor or any other example) And I would love to see how it is penciling out as a profitable renter. BTW you said that of the homes you listed , that they could rent for 1700-2200…. hmm anything over $2000 is wishful thinking. I wouldn’t pay more than $1700 myself to rent any of those, and I pay $1800 to rent a much larger/nicer home in Harveston(you know I am not a Harveston fanboy either) which has more amenities and a MUCH better location to the activities and hot locations in this town.

I guess my theory is that rents WILL drop in the Temecula area and I’m already seeing it / hearing about it. I know investors/landlords who are having a hell of a time keeping decent, paying tenants in their homes. I know two different landlords that have lost/are loosing homes to foreclosure, because they thought they were mini Donald Trumps, but now they can’t get the tenants to pay. I think a lot of the rental prices are a bit wishful thinking, and with the vast selection of rentals, and the fact that many up here will be forced to make lifestyle changes, means they will be renting for less. I know people who are renting nice homes for under 1600, and recently. My buddy and his co-worker just signed a 1 year lease on a 2200sqft two story in starlight ridge for $1550. Now it wasn’t that upgraded or trendy, but 4 good rooms, a nice street, a big lot, and a very great location central to everything in this area. Another just signed a $1600 in one of these homes….
http://www.redfin.com/stingray/do/printable-listing?listing-id=1600757

One last thing that I think you are assuming is that these people have the down payment to buy these homes that are close to being break even rentals. I fully agree about the shift though.

[hipmatt]

TG, thanks for the responses. I appreciate where you are coming from, and while I am surprised at your new more bullish stance, I respect it.

I would love to see some examples of the home you rent. (I fully understand not giving your addy on line, but maybe a neighboor or any other example) And I would love to see how it is penciling out as a profitable renter. BTW you said that of the homes you listed , that they could rent for 1700-2200…. hmm anything over $2000 is wishful thinking. I wouldn’t pay more than $1700 myself to rent any of those, and I pay $1800 to rent a much larger/nicer home in Harveston(you know I am not a Harveston fanboy either) which has more amenities and a MUCH better location to the activities and hot locations in this town.

I guess my theory is that rents WILL drop in the Temecula area and I’m already seeing it / hearing about it. I know investors/landlords who are having a hell of a time keeping decent, paying tenants in their homes. I know two different landlords that have lost/are loosing homes to foreclosure, because they thought they were mini Donald Trumps, but now they can’t get the tenants to pay. I think a lot of the rental prices are a bit wishful thinking, and with the vast selection of rentals, and the fact that many up here will be forced to make lifestyle changes, means they will be renting for less. I know people who are renting nice homes for under 1600, and recently. My buddy and his co-worker just signed a 1 year lease on a 2200sqft two story in starlight ridge for $1550. Now it wasn’t that upgraded or trendy, but 4 good rooms, a nice street, a big lot, and a very great location central to everything in this area. Another just signed a $1600 in one of these homes….
http://www.redfin.com/stingray/do/printable-listing?listing-id=1600757

One last thing that I think you are assuming is that these people have the down payment to buy these homes that are close to being break even rentals. I fully agree about the shift though.

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