FLU strikes out again in CarmelV.

[spdrun]

flu – Decent area, but would prefer NOT to send people there at present since it appears to be a bit off the radar 🙂

[Coronita]

[quote=spdrun]flu – Decent area, but would prefer NOT to send people there at present since it appears to be a bit off the radar :)[/quote]

Oh come on….Do tell….Inquiring minds want to know.. 🙂

[Coronita]

[quote=SD Realtor]FLU I am not sure that I would give up. Getting a return is hard. What you are trying to do is simply repetitive and super frustrating. You just have to keep at it, you know the drill. Try to hit the listing agent directly, and all that crap… Also try to filter out the noise from others and their multiple success stories. That stuff gets old. You may want to also start to consider out of state investments. If you have relatives or friends anywhere then leverage them. You get the place, and kick them some coin for some prop management help every now and then. Other ideas are out there dude. Partner up with some other old school piggs, pool up cash and go to trustee sales… stuff like that man.[/quote]

Meh, I’m just kinda fed up for the time being… I’m sure I’ll feel differently in a few days/weeks…. Although I’m sure other people do it, the last thing I want it to bring my relatives into this… If the ship is gonna capside, last thing I want is to sink everyone on it with me.

[an]

[quote=spdrun]flu – Decent area, but would prefer NOT to send people there at present since it appears to be a bit off the radar :)[/quote]
Not where flu would be considered decent. Some people think south east SD is decent :-D.

[Coronita]

[quote=AN][quote=spdrun]flu – Decent area, but would prefer NOT to send people there at present since it appears to be a bit off the radar :)[/quote]
Not where flu would be considered decent. Some people think south east SD is decent :-D.[/quote]

Oh come on… Give me a little credit here……

Ok. Let me change my opinion. I love southeast san diego. Southeast sd is great. It’s perfect.

Ok now, do tell, sdrun…..

[bearishgurl]

[quote=AN][quote=spdrun]flu – Decent area, but would prefer NOT to send people there at present since it appears to be a bit off the radar :)[/quote]
Not where flu would be considered decent. Some people think south east SD is decent :-D.[/quote]

Ahem, AN, some “southeast” SD neighborhoods have better, bigger homes (some streets with great views) and bigger lots than your typical MM neighborhood of the same age (30-40 yrs). And these areas are no better or worse than same or similar MM ‘hoods. Nor is the tenant quality.

spdrun is trying to buy a (SS) condo in the $100K range. At this price range, beggars can’t be choosers. You either want the 7.5% cap rate … or you don’t. If you don’t, then try to buy the same size/age MM condo for $100K. And … good luck.

I think your “friend,” flu will tell you that those days are long gone.

But of course, you know all this already. You are there.

[SD Realtor]

Cash flow has no boundaries, decent or otherwise. The pain threshold for management of properties, tenant quality personal and/or neighborhood safety varies for all of us. Cash flow calculations on paper rarely match reality as you move into more questionable areas unless you are intimately experienced in those neighborhoods.

[Coronita]

Well it’s not too late for the ronald mcdonald house of charity…
http://sdraffle.com/Overview.aspx

🙂

Might put me in RSF….or not… Oh wait, heavens forbid if I were to win the house, I’d still need to pay taxes on it… never mind…

Oh well.. Ok, need to go work smarter/harder now….

(end vent).

[an]

You have a partner in crime flu.

BG, spdrun said he has a 1/1 in a decent area getting 7.5% cap rate. flu’s just wondering where this secret spot is. I said it’s not where he’d consider decent but I obviously was wrong since flu does think southeast SD is decent.

[spdrun]

Cash flow calculations on paper rarely match reality as you move into more questionable areas unless you are intimately experienced in those neighborhoods.

Actually, the areas in my question aren’t particularly questionable. Boring with smallish condos, maybe; but that’s OK.

As far as questionable areas, find one that borders a non-questionable area. One NJ town that I’m interested in has an area that’s considered less desirable, but borders on two fairly tony towns. You can walk to the train stations (fast train to NYC) and downtowns in either of those two towns in 10 min. Whole Foods within walking distance, the whole 9.

And taxes are about 50-60% lower than in either of the two “nice” towns. Assuming a decently kept property, it’s actually fairly easy to rent to single younger professionals who don’t care about school quality.

[bearishgurl]

[quote=SD Realtor]Cash flow has no boundaries, decent or otherwise. The pain threshold for management of properties, tenant quality personal and/or neighborhood safety varies for all of us. Cash flow calculations on paper rarely match reality as you move into more questionable areas unless you are intimately experienced in those neighborhoods.[/quote]

Agree, SDR. IIRC, flu owns a 1 br condo in MM which he bought last year as an investment property.

spdrun is looking for the same-type property.

As you know, managing a single tenant (or a couple) in a 1 br unit (where HOA dues take care of the landscaping, etc) is a completely different animal than managing a SFR with a family with minor children as tenants. The family-tenants can turn into a LOT MORE WORK and headache for the LL, no matter WHERE it’s located. Tenant families can be hard on properties and leave them trashed and in disrepair in MM, SE SD, or even in CarmelV!

Like you, I’ve seen a LOT of properties both for rent AND for sale in several areas which would qualify as “upper-middle class” in which pets (unknown to the LL) were brought in and the carpet was trashed, the interior doors were kicked in, the kitchen was filthy (have you ever taken apart a $1500+ Jenn-Aire downdraft cooktop to clean 4″ of grease out of it?), the pool was green, etc, etc.

No area is immune from filthy tenants or tenants who will stiff their LL on rent without batting an eyelash, or filthy, deadbeat owners for that matter … not even RSF.

[SK in CV]

[quote=SD Realtor]Cash flow has no boundaries, decent or otherwise. The pain threshold for management of properties, tenant quality personal and/or neighborhood safety varies for all of us. Cash flow calculations on paper rarely match reality as you move into more questionable areas unless you are intimately experienced in those neighborhoods.[/quote]

I have to agree that being an experienced landlord is really important. But your lede is really the key. A 7.5% cap rate is a 7.5% cap rate. If a property is in an area that has higher expenses then those expenses MUST be included in computing the cap rate. Cap rate is NOT based on 12 months of rent and no expenses other than property taxes, insurance and a water bill. Higher turnover means higher vacancy, and lower cash flow. With minor exception, in SD there really is no such thing as a bad rental area. Only bad management and investors who overpay for property.

[spdrun]

Bearishgurl – agreed, the neighborhood doesn’t make the tenant: My family has a 2 bedroom townhouse condo in a very nice town in NJ. We rented to a lady who graduated from Hahvahd and was paralegalling for a known local law firm. Problem was that she never washed the dishes, just left dirty dishes in the sink for weeks. Not to mention, never vacuumed the crumbs off of the kitchen floor.

Can you say, la Cucaracha, la Cucaracha? Took a few months of traps and borax to finally get the buggers to drop dead. This was pretty much the worst tenant experience I’ve had to deal with. Granted, really wasn’t that bad as compared to other horror stories I’ve heard.

[bearishgurl]

[quote=AN]You have a partner in crime flu.

BG, spdrun said he has a 1/1 in a decent area getting 7.5% cap rate. flu’s just wondering where this secret spot is. I said it’s not where he’d consider decent but I obviously was wrong since flu does think southeast SD is decent.[/quote]

There are very few condos (if any) in SE SD (92114). There is at least one complex in 92113 which are actually condos that I know of. There are a few older complexes of condos/PUDs in 92139. In all three zips, there very, very few 1 br condos … if any.

In any case, I haven’t checked but don’t think ANY of these units would be currently listed for the ~$100K price range. If they are, they would be SS’s.

Spring Valley (91977) MAY still have some units left in the $100K price range … but IIRC, there VERY few 1 br condos there, as well.

It may be still possible to find a 1 br condo in 92105 for ~$100K. But this isn’t technically “SE SD.” It is metro SD.

Ditto in Santee and Lakeside.

[Coronita]

It’s friday, I forget…Anyway, Murphy’s laws when it comes to investments/real estate….

You know what sucks about when you do well in the stock market? If you do well, someone does better than you, because reality is, you’re really not smarter than someone else….So chances are you’re doing the same thing they’re doing…And since they have deeper pockets than you do, it doesn’t matter if you did well. Relatively speaking, you still suck.

And when someone craps out, so do you….So if others don’t have discretionary income, chances are neither do you…And since they have deeper pockets, you have even less discretionary income, so relatively speaking you’re still worse off..

And if you attempt to be contrarian, you might be right, but chances are at the wrong time..

…Until you decide to join the party, and then you’re too late and wrong again…

So the quicker you understand these 4 rules, you quicker you realize you just as dumb and stupid as everyone else and just suck as bad as everyone else….And there’s nothing you can do about it. So deal with it….So your goal should be just to make the decisions so you can barely cut even….

[Author]

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