- This topic has 151 replies, 18 voices, and was last updated 11 years, 7 months ago by
earlyretirement.
-
AuthorPosts
-
February 15, 2013 at 7:32 PM #759532February 15, 2013 at 7:33 PM #759533
bearishgurl
Participant[quote=flu][quote=earlyretirement][quote=spdrun]Here’s one condo listed at $125k that I saw last month, but didn’t make an offer on. HOA = $265/mo, 2 bedroom, 2.5 bath, decently maintained complex.
http://www.trulia.com/property/3105956930-3916-60th-St-105-San-Diego-CA-92115
There have been others.[/quote]
Just out of curiosity what does a place in this area REALISTICALLY rent for?[/quote]
Probably $1300-1450/month for a 2/2… This one in particular probably on the lower end…..There is probably more turnover due to the seasonality of renters in the area versus say MM… BUT it is doable me thinks in general.. Not sure about this particular complex, because haven’t researched this one in particular…..
http://sandiego.craigslist.org/csd/apa/3620289555.html
(wondering how I know, huh 🙂 ? )[/quote]flu, I was going to make an educated guess of $1450. Your sample craiglist rental is 200 sf smaller and has only ONE space in a “collective?” garage. spdrun’s listing has a two-car garage all to itself.
Your tenants don’t have to be “seasonal” if you don’t rent to students.
February 15, 2013 at 7:34 PM #759534earlyretirement
ParticipantYeah, I saw Zillow had a rent zestimate of $1422 per month. I’m sure that area might be a bit rough but seems like the buyer is getting a steal if they can get $1400 per month!
I saw it was a short sale so realize that these types of thing are few and far between. Typically I only like buying in premium areas or areas that are quickly gentrifying but I think I’d risk it for that price!
spdrun – sounds like you’re cleaning up if you’re picking up properties at this price and getting these types of rents!
February 15, 2013 at 7:38 PM #759535
CoronitaParticipant[quote=earlyretirement]Yeah, I saw Zillow had a rent zestimate of $1422 per month. I’m sure that area might be a bit rough but seems like the buyer is getting a steal if they can get $1400 per month!
I saw it was a short sale so realize that these types of thing are few and far between. Typically I only like buying in premium areas or areas that are quickly gentrifying but I think I’d risk it for that price!
spdrun – sounds like you’re cleaning up if you’re picking up properties at this price and getting these types of rents![/quote]
Well, we’ll find out…maybe….
No further comment at this point.
February 15, 2013 at 7:44 PM #759536an
Participant[quote=flu]But if you think it’s a great deal. It probably is..Because it’s contingent just like other things in this price range…
http://www.sdlookup.com/MLS-130001881-3916_60th_St_105_San_Diego_CA_92115
Good luck finding the same deal today…[/quote]
Bingo!!! Here’s the listings of all actives <$150k today: linkyFebruary 15, 2013 at 7:45 PM #759537spdrun
ParticipantGood luck finding the same deal today…
It was active less than a month ago. Two things similar to the condo that I have in the SS process (different area) just popped up about 2 wks ago, one with an asking price less than my accepted offer (but in worse shape). Offered somewhat below ask on both, didn’t get either, but the more offers I have out there, the better.
(I didn’t get my accepted offer in CA instantly either — was outbid, then they came back to me 2 mos later.)
February 15, 2013 at 7:54 PM #759538Participant[quote=earlyretirement]Yeah, I saw Zillow had a rent zestimate of $1422 per month. I’m sure that area might be a bit rough but seems like the buyer is getting a steal if they can get $1400 per month!
I saw it was a short sale so realize that these types of thing are few and far between. Typically I only like buying in premium areas or areas that are quickly gentrifying but I think I’d risk it for that price!
spdrun – sounds like you’re cleaning up if you’re picking up properties at this price and getting these types of rents![/quote]
ER, this area isn’t “rough.” It is working class and students. A lot of white collar professionals and para-professionals who work downtown live there.
You stated above that you think SFR’s? in “NCC” and “good school districts” make good rentals. Actually, they don’t, for buyers who are purchasing today. They cost too much and insurance, taxes and often HOA/MR are too high on them to cash flow, unless the buyer puts 50-60% down. For a house like you’re talking about, that is $350-$400K down. These properties don’t typically “pencil out” in SD as rentals.
IIRC, you’ve stated before that your rentals are not in CA and that some (or all?) of them are overseas. You also stated that you rent (some or all?) of them by the day, week and month (short-term resort? lodging). That is NOT what spdrun and flu are looking for here.
They are looking for local bread-and-butter cash flow.
The “truly wealthy” families who move into SD can buy. They have no need to rent. And only very few micro-areas in SD County allow day, week and month rentals, as you have.
For these reasons, your rental experiences are not analogous to those found in SD County, IMHO.
February 15, 2013 at 7:56 PM #759539CoronitaParticipant[quote=spdrun]
Good luck finding the same deal today…
It was active less than a month ago. Two things similar to the condo that I have in the SS process (different area) just popped up about 2 wks ago, one with an asking price less than my accepted offer (but in worse shape). Offered somewhat below ask on both, didn’t get either, but the more offers I have out there, the better.
(I didn’t get my accepted offer in CA instantly either — was outbid, then they came back to me 2 mos later.)[/quote]
I know…Oh do I know…..SS process takes awhile…
sdrun, seriously though now that we beat 92115 to death (and I don’t doubt you at all on 92115), you also mentioned “other areas”. You mind sharing…Again, just comparing notes…..
February 15, 2013 at 8:00 PM #759540Participant[quote=flu][quote=earlyretirement]Yeah, I saw Zillow had a rent zestimate of $1422 per month. I’m sure that area might be a bit rough but seems like the buyer is getting a steal if they can get $1400 per month!
I saw it was a short sale so realize that these types of thing are few and far between. Typically I only like buying in premium areas or areas that are quickly gentrifying but I think I’d risk it for that price!
spdrun – sounds like you’re cleaning up if you’re picking up properties at this price and getting these types of rents![/quote]
Well, we’ll find out…maybe….
No further comment at this point.[/quote]
I’m trying to find my construction defect listing of HOAs and SFR subdivisions off the class action case for PBT plumbing which was settled in 1994.
It’s somewhere in one of three lateral files :=0
IIRC, ~47K total units in the county were affected, built between approx 1980 and 1986.
February 15, 2013 at 8:05 PM #759541Participantspdrun is dumb like a fox :=D
While some of y’all are all wrapped up in investing in just ONE zip code, he’s making (sight-unseen?) offers from 3000+ miles away, lol . . . .
I daresay he may very well be successful in getting one, purely due to persistence!
February 15, 2013 at 8:06 PM #759542CoronitaParticipant[quote=bearishgurl]spdrun is dumb like a fox :=D
While some of y’all are all wrapped up in investing in just ONE zip code, he’s making (sight-unseen?) offers from 3000+ miles away, lol . . . .
I daresay he may very well be successful in getting one, purely due to persistence![/quote]
speak for yourself. Some of us might just be comparing notes.
February 15, 2013 at 8:12 PM #759543CoronitaParticipant[quote=bearishgurl][quote=flu][quote=earlyretirement]Yeah, I saw Zillow had a rent zestimate of $1422 per month. I’m sure that area might be a bit rough but seems like the buyer is getting a steal if they can get $1400 per month!
I saw it was a short sale so realize that these types of thing are few and far between. Typically I only like buying in premium areas or areas that are quickly gentrifying but I think I’d risk it for that price!
spdrun – sounds like you’re cleaning up if you’re picking up properties at this price and getting these types of rents![/quote]
Well, we’ll find out…maybe….
No further comment at this point.[/quote]
I’m trying to find my construction defect listing of HOAs and SFR subdivisions off the class action case for PBT plumbing which was settled in 1994.
It’s somewhere in one of three lateral files :=0
IIRC, ~47K total units in the county were affected, built between approx 1980 and 1986.[/quote]
Not sure what the purpose would be….
February 15, 2013 at 8:20 PM #759545Participant[quote=flu][quote=bearishgurl][quote=flu][quote=earlyretirement]Yeah, I saw Zillow had a rent zestimate of $1422 per month. I’m sure that area might be a bit rough but seems like the buyer is getting a steal if they can get $1400 per month!
I saw it was a short sale so realize that these types of thing are few and far between. Typically I only like buying in premium areas or areas that are quickly gentrifying but I think I’d risk it for that price!
spdrun – sounds like you’re cleaning up if you’re picking up properties at this price and getting these types of rents![/quote]
Well, we’ll find out…maybe….
No further comment at this point.[/quote]
I’m trying to find my construction defect listing of HOAs and SFR subdivisions off the class action case for PBT plumbing which was settled in 1994.
It’s somewhere in one of three lateral files :=0
IIRC, ~47K total units in the county were affected, built between approx 1980 and 1986.[/quote]
Not sure what the purpose would be….[/quote]
I guess the info isn’t really valuable to anyone. And x-amount of owners after-the-fact wouldn’t know if the complex/house was built with faulty plumbing or if it was ever replaced. And if they DID know, they wouldn’t tell a potential buyer, anyway.
So, it’s no skin off my neck if you want to feel free to shop in the dark … or see if your agent knows anything or your inspector can tell … in a condo complex.
Good luck, flu … ESP in the price range you are looking in 🙂
February 15, 2013 at 8:36 PM #759544ParticipantOh yeah BG… I know my situation is MUCH different. No, not all my rentals are short-term rentals. A few are on 2 year leases.
Absolutely I know and understand that flu and spdrun are NOT looking for that type of set up. I understand what the typical investor is looking for here locally.
As far as good rentals, I was speaking more about demand and occupancy rates and people that are paying cash. If you’re trying to argue that short-term rentals wouldn’t work here I can tell you they already are working. I spoke to a few people that rent their furnished high end properties out here in Santaluz by the night/week/month.
Same thing in Carmel Valley. In fact, while we were waiting to move into our house we rented a townhome in Carmel Valley off of VRBO.com. Check out VRBO.com, Homeaway.com, etc. There is actually quite a bit of demand for luxury rental properties here in the SD area as you probably know with tourism the way it is.
http://www.vrbo.com/search/usa/california/san-diego-county?q=San+Diego San Diego has over 3,400 there listed and I’ve been watching the occupancy rate on several high end ones and some are rented all the time! Wise owners won’t rent by the month and just try to churn weekly/nightly rentals.
HomeAway (they actually own VRBO) has over 3,500 rentals. Granted many of the rentals on VRBO are probably listed here as well.
http://www.homeaway.com/search/keywords:San+Diego+County%2C+California
But you simply can’t dismiss short-term vacation rentals vs. traditional rentals. If you know what you’re doing..there is a gold mine in it. It’s a LOT of work however.
“Charming” (i.e. rather dumpy) places are going for as much as $3,750 per WEEK in Del Mar. – http://www.vrbo.com/4851
Here in Santaluz there are even people renting out their places and from what I inquired with the HOA board before I bought my house, they will allow short-term rentals 7 days or longer. And heck, Santaluz has some of the strictest HOA rules in all of San Diego. And they allow it.
http://www.vrbo.com/426430 Just one example of many (this one happens to be in Santaluz). $13,500 per WEEK. $16,600 per month. Check out their rental calendar.
But even if they didn’t. There would be no way to really “police” this because it’s such a huge development over 3,800 acres. And you can call in your guests ahead of time with the security guards and they wouldn’t know they were renting them. You can give guest passes that are good for a # of days so even here it is easily possible to do it. Same as several other gated communities in Rancho Santa Fe and this general area.
Many affluent people own second homes here as you know. Some of them are renting them out during Del Mar Racetrack season. One of my friends rents out his place in La Jolla in a gated community for $15,000+ a month during that time of year. (He rents it two months out of the year). That’s the only time he rents it out and he flies in from Texas to use it throughout the year. He paid cash for his place back in 2010.
I guess my point was that people paying cash and buying in affluent areas in good school districts I don’t see too much risk long-term. However, if prices keep going up the pace they are going I would change my opinion on that.
As far as that area of that $125k place I have no clue at all how nice it is. I was only assuming (and it sounds like wrongly) that it was a bit rough if that place was going for $125k. That sounds like a total steal!
February 15, 2013 at 8:38 PM #759546CoronitaParticipant[quote=bearishgurl]
Good luck, flu … ESP in the price range you are looking in :)[/quote]
Don’t need it… If it’s not there it’s not there…
BTW: about your question…
Cost of 1/1 in MM would have been about the same as a cost of a 2/2 in 92115, give or take a few thousand. Rent in MM would be about $200/month less for a 1/1 than a 2/2 in 92115… For the -$200/month, your rental pool is more of a long term profession with a high(er) paying job with no incentive to really make it difficult to you since they are here for the long term and most likely won’t be switching companies for some time for a few significant reasons. You don’t need to worry about background checks/screening because their employer already did that..All you really need to do is collect rent, say hi to them every so often, and take care of any repairs….
In 92115, it will probably be slightly higher turnover, just due to the nature of the area being more fluid…It might be more competitive to rent the place out (slightly). The cashflow probably is better, at possibly the risk of higher turnover. That said it’s a decent area to rent at that price point….
This area has the same issue as MM in which a good portion of the properties that have this sort of opportunity are pretty much contigent..It’s no surprise because probably (not definitely, but probably) the same sort of people looking for MM opportunity were looking elsewhere too…
And as ER pointed out the value of upcoming “gentrification”, it’s pretty evident that is happening right now in MM, which is probably why there’s even more interest there…
-
AuthorPosts
- You must be logged in to reply to this topic.