Clairemont – Starter Home -> Rental

[yipla]

Hi, I’ve been lurking around here. I’m moving to San Diego from the SF bay area. I am thinking of getting a starter home in Clairemont to live for a few years before starting a family. When the time comes, we’d move on and rent the place out. I’m trying to get a sense of what rent you could get for homes in Clairemont, so I can figure out what kind of monthly payment I should shoot for. Maybe you all could opine:

Property #1:
http://www.redfin.com/CA/San-Diego/4221-Appleton-St-92117/home/6236780
3 beds, 2 full baths (though 1 is a tiny shower).
1210 sqft
2-car garage
On through street north of CMB, just west of Genessee
I actually made an offer on this one that was rejected, but would consider similar properties.

Property #2:
http://www.redfin.com/CA/San-Diego/3635-Merrimac-Ave-92117/home/6237195
3 beds, 2 full baths (pretty comfortably sized)
1640 sqft
1-car garage
On through street north of CMB, far west of Genessee

Property #3:
http://www.redfin.com/CA/San-Diego/5051-Ovid-Pl-92117/home/6236885
3 beds, 2 full baths (pretty comfortably sized)
1584 sqft
1-car garage
On a quiet street north of CMB, just west of Genessee

Generally, what kinds of renters are in this area? Families? Students? Do students care more about having lots of bedrooms, or would they pay more for a larger house, even if it has the same number of beds and baths?

Will being on a through street like Merrimac/Appleton affect rental value much vs. being on a quieter street like Ovid?

Do renters care one way or another whether there is a hot tub? Personally, I don’t care for them and feel like it’s a maintenance item.

Thanks in advance for any thoughts!

[livinincali]

Clairemont renters are a hodgepodge of everything. Hispanics, military, families, some students. I’d call it working class although it’s probably experiencing some gentrification because of it’s central location. It is an area that doesn’t command the best rents compared to the prices. There’s just so many duplexes and apartments that are always available. You’re probably looking at $2000/mo maybe $2200 to the right people for the linked properties.

Generally west clairemont and north clairemont are the better areas.

[UCGal]

The through street (Merrimac and Appleton) are more a factor in resale than in rental prices, IMO. Appleton has the most traffic between Genessee and Cole – but the next block west (between Cole, and where it turns into Merrimac) is also pretty busy because of the school. I drive those streets regularly because I have to go to the PO across from McDonalds – and that’s my “shortcut”.

I agree with livinincali about the rent estimates.

[joec]

Welcome bay area person to this forum…I think it’s the most helpful housing forum if you’re looking to move to SD.

I’d recommend you actually rent a place first and just live with “throwing money in the toilet” for at least a year to see how the job turns out to be and how you like/dislike the area…

I think quite a few people here have lived/worked in the bay area as well to give you possibly a more objective comparison.

No idea on Clairemont from me.

[sdduuuude]

I know a guy getting $2800 for a very nice 1700 sq. ft, 2-car garage property on a large, 10,000 sq. ft. canyon lot.

I know another getting about 2700 for a similar but smaller house.

They are both on quiet streets and much more desireable than the 3 properties you listed.

I consider anything with a 1-car garage in clairemont to be the weaker neighborhoods and I don’t pay attention to them so I’m not sure what you could get for those. Somewhere in the 2000-2400 range, which is a wild-ish guess.

The quieter streets are much better. I’d go for a fixer-upper with a 2-car garage before a nicer 1-car garage.

Fix it up while you live in it so it’s nice for the renters and already on a nicer street – which you can’t ever change.

[sdduuuude]

SUggest you surf craigslist for rentals and visit them as a potential renter.

[sdduuuude]

I suspect this will sell for more than asking. Might want to check it out.

http://www.redfin.com/CA/San-Diego/4716-Mount-La-Platta-Dr-92117/home/4960226

D

[CDMA ENG]

I too just move from Clairemont, in fact, my rental is up on CL right now. Please rent it! I don’t need a mortgage and a rent right now.

2000 to 2200 is on the low side. 2200 to 2500 seems to be the norm. It is a working class community but it is very nice. I had moved from the UTC which the listed house are between 600K and 800K and into the Clairemont ‘hood (400K to 500K). The crime rate is actually lower in Clairemont. Check it for yourself. I knew all my neighbors and had no problems with anyone. Heck one of my neighbors was a leader in a Black Motor Cycle club and they would “hold Church” at his house on Sundays. Never had a problem once.

Clairemont is central located and very desirable from that stand point. I enjoyed my time there and would recommend it to anyone.

Remember though the house are old there. 60 Amp services, small everything, some house don’t have grounded electrical outlets, so be prepared for that. On the other hand its close to the beach, two interstates, and one freeway.

PM me if you have any questions.

CE

[yipla]

Thanks, everyone! Because it’s a starter home for me, I’m looking on the more affordable end but in a convenient location. It’s a balance of finding an affordable place that can still rent for enough to make it worthwhile. If Clairemont is not good value for rental vs purchase price, what areas are better?

I’ve been checking craigslist for a couple months and there aren’t actually many homes for rent in the north clairemont area. Most of the ones listed have been listed a long time because they’re asking over $2400. I wondered if one of the houses I mentioned could more easily rent for $2300, or if that would still be difficult.

sdduuuude, for $2800/month what kind of home price would that come to for purchase? How many beds and baths? I also have concern that if I get something too high-end there is more time searching for tenants between tenants. Maybe not as many people are looking to rent a high-end home in Clairemont.

On the Mt La Platta property, is that area desirable for renters? It will probably go before I have a chance to see it.

[sdduuuude]

1700 sq. ft.
2-car garage
10,000 sq. ft. lot
4 BR (2 masters), 3-bath
canyon lot
Nicely finished but slightly dated – dated 10 yrs ago, not like 50 years ago.
Looks like $575K – $600K right now.

I expect that La Platta house to go for $525 at least. They could have asked $550 for that, I think. Not saying they would get it, but they could have asked for it without turning people away. Virtually any “Mt.” street in Clairemont is desirable for renters or buyers. Again – 2 car garages are a good indicator of desireability.

Also, I attach a $40,000 premium to a canyon lot with no neighbors to the rear. So, that house I listed looks like a $490K house to me if it were on a standard Clairemont lot but the canyon makes it cha-ching-ier.

I know CDMA Eng and have been to his house. It has a 2-car garage so while he is saying my numbers were a little low, but I think the houses you listed were in neighborhoods inferior to his.

I share your perception of “not many people looking to rent a high-end home in Clairemont” yet people are getting these great rents so I’m not so sure. Also, this is why I suggested you look for good location, good bones, 2-car garage that needs work.

I say 2-car garage not because a 2-car garage is important, but because in Clairemont, neighborhoods with 1-car garage homes are not as nice.

[spdrun]

Remember though the house are old there. 60 Amp services, small everything, some house don’t have grounded electrical outlets, so be prepared for that.

Heat/cooling loads are minimal in San Diego. Nothing wrong with 60-amp service. If they used cable with a ground lead built in (typically anything built post-1940), you can install grounded outlets and ground them to the boxes. Check for presence of good ground using a test lamp.

Outlets are cheap and an entire house can be done in a day or two no sweat. Other alternative (if no ground is present and it’s legal in CA) is to go with 3-prong GFCI outlets labelled “no equipment ground.” If there’s current returning through a short vs through the neutral, the outlet will trip off.

I’d be more worried about the presence of aluminium wiring or poor quality breakers (e.g. Federal Pacific) than the two points that you mentioned. I also grew up in a 1950s house with mostly 2-prong outlets. No one died or got bit over a few decades.

Previous house still had some knob-and-tube wiring (Google it).

[sdduuuude]

[quote=spdrun]If they used cable with a ground lead built in (typically anything built post-1940).[/quote]

No luck there.

The previous owner of our house, 1959, put in some “grounded” outlets. He tied them to the copper pipes.

Not much AL that I know of in Clairemont.

Grounding is more there to protect the equipment back at the power plant than the residents. The circuit breakers protect the residents.

[spdrun]

Disagree — the equipment in the power plant won’t care about an extra few amps on a short circuit. Grounding is there so appliances with a metal case with a short to the case stay at ground potential (hopefully pop the breaker) vs having a live case and biting someone.

[SD Realtor]

I agree with joec… anyone that relocates should rent at least a few months. even if u have lived here before the area may have changed. You may even find somewhere else you like better. Also right now inventory is building again… No rush to do anything if I were you.

[yipla]

Yes, SD Realtor and joec, we are staying in temporary housing at first. Arriving mid-August. It should be a decent sized 2-bedroom apartment on a month-to-month lease so we have flexibility, but I kind of hate living in apartments with carpet and no space for a garden. I’m picky! =) Need sunlight to grow! I have a bunch of plants I’m bringing from our current location and wish to plant them in the ground somewhere…

My partner hates commuting, so he really prefers a neighborhood near UCSD. We looked downtown around Hillcrest and University Heights for a while, and over time, he decided he hated the idea of driving even the 20 minutes it takes to get from there to UCSD. He hates driving on highways. He likes the idea of just having to drive up Genessee to get to school. So the more affordable starter-home neighborhoods nearby seem to be Clairemont and Mira Mesa. We might check the Mira Mesa neighborhood out when we get down there, but I’m so far not convinced it’s very convenient to anything but UCSD and the tech jobs nearby.

It does seem that the buying activity in Clairemont has been slowing down the last month. I wonder how long that will go on for and what that means for prices? This might be going into topics discussed elsewhere here, but do people think prices in Clairemont will see a dip as interest rates go up in 2015? Or will prices just stay flat.

I’m not trying to rush too much, but at the same time, most of the houses seem similar and I’d be fine living in most of them. It’s just about getting the right price for a house that is in reasonable shape to rent out in a few years. Too much of a fixer and it will be like putting more cash in for an effective down payment (read: more opportunity cost, no related deductions). That works if the purchase price is a really great deal, but not otherwise, especially if Prof. Piggington is right in valuations being at a high and likely to go down.

If Rich is to be believed, perhaps now is a bad time to buy. If I didn’t need a place to live, maybe I wouldn’t.

sdduuuude, maybe some people are getting good rents, but it would make me nervous to count on getting a high rent in an area where that doesn’t seem to be the norm. I might try to be conservative so that I can be sure I’m not losing money every month down the line. We’ll see!

Thanks again to everyone!

[Author]

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