FLU strikes out again in CarmelV.

[earlyretirement]

[quote=spdrun]I know people who rent out their NYC apartments when they travel. Via Craigslist, not VRBO or AirBnB … why the hell would one pay someone a cut to do what Craigslist does for free? Generally not super short term, but more like a month in summer. (Theoretically the legal minimum in NY.)

.[/quote]

Oh yeah. I think technically short term rentals are illegal in NYC. Paris too. But it’s very difficult to police it because guests can say their friends/family is using it. Some buildings in NYC are really tough but we’ve rented places there. Amazing places!

For people traveling with kids, staying in hotels isn’t convenient. Forget even if you are affluent and have money to spend on 5 star hotels and can book 2 adjoining rooms. We do that for short trips but for longer stays of at least a week, it is TOUGH to stay in hotels.

When you have young kids you need to cook and you really need a full washer and dryer. For us, it doesn’t even come down to a price factor. Hotels just aren’t convenient with 2 young kids.

Even in cities like NYC and Paris where many of our friends rent out, it’s easy to bypass rules if you know what you’re doing. You can let guests know ahead of time and also the MOST important person is typically the doorman. You tip the doorman a bit from each guest and you also tell the guests it’s a good idea to tip the doormen and these guys are making a fortune in tips. They won’t say anything and if anyone asks he says “family of the owners are staying”.

Of course you have to be careful in this situation with posting photos of the outside of the building or too much info on location. But you figure out quickly what works and what doesn’t.

Other places we’ve rented like in Paris, the owners have fed ex’ed us the keys ahead of the stay. Amazing places! Same thing in the French Riviera. Same thing in London, etc. etc.

It’s really the way to travel these days. If you book via sites like http://www.airbnb.com you’re totally protected because they don’t even pay the owner until 24 hours after the check-in to make sure it’s not a bait and switch. VRBO as well as Homeaway also offer insurance you can buy. And as long as you use your credit card you’re always protected anyone if there is a bait and switch. But after a while you just know which ones are legit or not. You can tell the owners that really have this down to a science.

And the thing is…..some of them are making a killing and very high ROI on it vs. traditional rentals.

[earlyretirement]

[quote=flu]

I’m the biggest idiot out of everyone. But get sympathy help from smarter people than me…

But in all seriousness. When you start seeing Pardee $600k-$700k homes in MM selling well, which are basically the same exact homes that sold in Carmel Valley as “Carriage Run” for $800k, to me that tells me something is going on in the hood…

FWIW: I recall when these homes were first announced by pardee, almost all of us were skeptical..A lot of us were like no frickin way…Is Pardee insane???….
I was one of them….

I think there was only one person who actually said they would sell well…And called it as it happened.

You can dig it up who it was….It wasn’t AN either (initially)…

http://piggington.com/new_tract_in_mira_mesa%5B/quote%5D

My feeling is you NEVER stop learning and there are always people smarter than me/you/etc. You never stop learning and you should always want to learn a bit each day. At least that’s what I try to do.

I can’t understand some of the prices that some of these places are going for in MM.

While it’s not for me, it obviously looks like it is for other people. My personal thought and something I told myself a long time ago is I’d never buy an investment property in an area I personally wouldn’t want to live in or could see myself living in.

While I admit that MM is conveniently located for many people. I just can’t see the appeal, especially at today’s prices. (flu’s example of Pardee homes going for 700k is a good example). I don’t get it but still willing to hear why someone else feels they are worth it.

I’ve stuck with that philosophy and it’s paid off very well for me over the years. I don’t care if an area is renting out well. If I couldn’t see myself living there..it was a no go.

But then again if I could pick up a rental property for only $125k in SD and rent it for $1,450 per month….. I’d be singing a different tune! LOL.

[paramount]

[quote=earlyretirement]

My feeling is you NEVER stop learning and there are always people smarter than me/you/etc. You never stop learning and you should always want to learn a bit each day. At least that’s what I try to do.

[/quote]

I feel the same way, I’ve become an intellectual grazer (not gayzer).

In 2008 I had the financial aptitude of Maureen O’Connor.

Then I got burned during the crash. I was pissed and still am to an extent.

Then I started reading Piggington, Mish Shedlock, Peter Schiff, etc….daily.

One of the most important things I’ve learned is to consult with people smarter than me when possible.

[Essbee]

My parents live in a SFH in 92115, east of SDSU and north of College Ave. Not very close to where you are looking at condos, but still interesting.

Some interesting facts:
1. This particular area in north 92115 used to feed into Mann/Crawford, but for the last ~5-10 years, children in that area can enroll (WITHOUT lottery) into Lewis JHS and Patrick Henry HS in Del Cerro/San Carlos. These are much “better” schools. Hardy Elementary on Montezuma is also good, and it is also fairly easy to “lottery” into Hearst Elementary on Del Cerro Blvd, which has an API 942 for 2012.

2. Many of the homes on my parents’ street are the ones being converted into “mini-dorms”. This is not good for my parents, unless they decide to convert their own home into a mini-dorm and buy elsewhere. However, it may be interesting to some of you. I have literally seen real estate investors walking up and down the street scouting for new properties to buy.

Still, fairly affordable area… and decent schools, too… if you can deal with all the college kids.

[Essbee]

I just cruised around 92115 on zillow a bit. These SDSU illegal mini-dorms are renting for insane prices. There is one place claiming to be “7 bedroom, 3 bath” in 1916 sq feet, and renting for $5100 per month. Something tells me it’s not 1916 sq feet any more…

The rents these places get is crazy if you have the stomach for an illegal remodel and dealing with college students and their partying ways.

[an]

[quote=bearishgurl]Correct me if I’m wrong, flu, but didn’t we determine that this Pardee subdivision was in Sorrento Mesa (92121?) and not Mira Mesa. It is adjacent, but not IN MM?[/quote]First, Sorrento Mesa is not 92121. 92121 spans from UTC to Mira Mesa. Sorrento Mesa is a sub area of Mira Mesa but most people don’t know where it is. It’s the area along Calle Cristobal. It makes not difference because they all go to the same schools and have the same zip code 92126. What you’re probably referring to is Sorrento Valley. Where it’s mostly business and a small bedroom community along Sorrento Valley Blvd. which turns into Calle Cristobal. That area is part of 92121. However, they also go to Mira Mesa’s school. So, besides the zip code difference and higher home price per sq-ft, it’s the same as Mira Mesa, since they also go to Mira Mesa’s school. Mira Mesa Town technically spans from 805 to the 15. From Los Penasquitos Canyon to Miramar. That whole area is controlled by Mira Mesa Town Council. You can think of Sorrento Valley is the commercial side of Mira Mesa.

BTW, the Pardee development is in Mira Mesa with zip code 92126.

[an]

WRT to gentrification and MM. Here’s the Wikipedia’s definition of gentrification: http://en.wikipedia.org/wiki/Gentrification. So, based on this, I would say it’s a yes and no, depend on how important the classification of urban is to you WRT the word gentrification. MM fits some of the description of gentrification. It’s demographics is changing from blue collar low-to-mid middle class to more white collar mid-to-high middle class working in Mira Mesa. There’s a new master planned community that’s going into MM in the next 5-10 years that will add 33% more population to MM. The master planned community will be a mix between condo, mixed used, retail and commercial. So, you’ll see a more urban like feel where everything is walkable and people living above shops. So, in short, what MM is experience is similar to what you would describe an urban area going through gentrification. However, since MM is technically a suburb, it can’t be called gentrification… or can it?

It also depend on what you would consider urban vs suburbs as well. I’ve seen many definitions, so I’m not sure what is the official definition. I’ve seen some that say if you have a density of 3000+ people/sq mile, then you’re urban. While others would only consider downtown type of density to be urban. Mira Mesa today is about 4500 people/sq mile. In 10-15 years, after the Stonecreek master plan completes, that number would be at least 6k people/sq mile. I’ve also seen upzoning request from a couple of apartment complex (and was approved). The builder didn’t follow through due to the housing crash, but I assume once the housing market is buzzing again, you’ll see these apartments gets torn down and more dense apartment comes up. The zoning now is there.

[CA renter]

[quote=flu]So again, I ask… If the economic situation is so bad globally, where are we getting buyers who can put up over $1million+, without much of a blink….

(no I’m not one of them)….

I mean if feels like some of these folks throw this kinda of amount around like it’s $100k or $10k…

We’re not talking LJ, or Del Mar or RSF or Del Mar Mesa or some custom home…It’s CarmelV for sake….It’s a frickin stucco box, albeit might be slightly nicer stucco box….[/quote]

Here’s a good article about it:

Following the herd of foreign money into US real estate markets – foreign money and global capital flows. Are Americans moving out in larger numbers from high cost states?

—————-

Also this:

Of the 10 sectors tracked by EPFR Global, seven of them saw continued inflows this past week. But none saw more money flowing in than real estate. Year-to-date flows into real estate mutual funds and ETFs came in around $4 billion. The next closest sector in terms of flow was financials, with around $1.8 billion year to date.

The real estate sector is currently benefiting from a number of tailwinds that include the general search for higher yield (REITs pay dividends) and lower volatility, better data emerging from key markets and the U.S. Federal Reserve’s continued focus on the mortgage and housing markets, EPFR Global said in a press release on Friday.

http://www.forbes.com/sites/kenrapoza/2013/02/08/favorite-investment-ideas-heading-into-february/

———————

Real estate is benefiting from global investors’ desperate search for yield. It will do well until other investments begin to look better.

[Coronita]

[quote=Essbee]My parents live in a SFH in 92115, east of SDSU and north of College Ave. Not very close to where you are looking at condos, but still interesting.

Some interesting facts:
1. This particular area in north 92115 used to feed into Mann/Crawford, but for the last ~5-10 years, children in that area can enroll (WITHOUT lottery) into Lewis JHS and Patrick Henry HS in Del Cerro/San Carlos. These are much “better” schools. Hardy Elementary on Montezuma is also good, and it is also fairly easy to “lottery” into Hearst Elementary on Del Cerro Blvd, which has an API 942 for 2012.

2. Many of the homes on my parents’ street are the ones being converted into “mini-dorms”. This is not good for my parents, unless they decide to convert their own home into a mini-dorm and buy elsewhere. However, it may be interesting to some of you. I have literally seen real estate investors walking up and down the street scouting for new properties to buy.

Still, fairly affordable area… and decent schools, too… if you can deal with all the college kids.[/quote]

Thanks essbee! You see this is exactly the sort of information I wish more people would share….

Dumb question. College ave runs N/S, so did you mean El Cajon Blvd….

Really appreciate the local input….
I don’t need no forbes/cnn/wsj article about speculation about where global economy is headed..First, I can read forbes/cnn/wsj…It’s not really relevant to what happens locally.

[spdrun]

Even in cities like NYC and Paris where many of our friends rent out, it’s easy to bypass rules if you know what you’re doing. You can let guests know ahead of time and also the MOST important person is typically the doorman.

If there is a doorman. Plenty of nicer non-doorman buildings in NY.

This being said, if the building is a co-op which doesn’t allow subleasing and the board gets a bug up its collective butthole about you, you could conceivably lose the place. Highly unlikely – they’re more likely to fine you or send you a nasty letter signed by an atty – but theoretically possible. Co-op isn’t real property: you’re buying shares in a nonprofit that owns the building and leasing your apt back for the cost of common charges, basically.

[Essbee]

FLU:
Oops, I meant to say that my parents live north of Montezuma, east of College Ave (and SDSU).

[bearishgurl]

Very well-built house asking $210-$240K (short)

Will rent for at least $1450. LL should accept dogs (no NOT pit bulls!)

Walk to Hilltop Drive Elem, Hilltop Middle and Senior. Coveted neighborhood.

Nice lot with big backyard. Huge screen porch (not sure if permitted and no one cares at this late date).

http://www.sdlookup.com/MLS-120056824-607_Claire_Ave_Chula_Vista_CA_91910

Nice 1500 sf home asking $240K (short). Will definitely rent for $1650. Another good ‘hood ChulaV Middle and Senior and choice of 3 elems. Pic is small and so may already be sold to friend/relative of agent.

http://www.sdlookup.com/MLS-120009496-686_Ash_Ave_Chula_Vista_CA_91910

Another small pic of SS asking $270-290 so likely already sold but will rent for $1750 (1800 sf). Big lot. LL should allow dogs. Collective dog-walking is a very popular sport around there. Great schools of Rosebank Elem, Hilltop Middle and Senior.

http://www.sdlookup.com/MLS-120048017-322_1st_Ave_Chula_Vista_CA_91910

Another short of almost 2000 sf on HUGE lot. Asking $299,900. Awesome street in Rosebank and Hilltop Middle/Sr attendance area! Will rent for $2000 and LL should allow dogs.

http://www.sdlookup.com/MLS-120048017-322_1st_Ave_Chula_Vista_CA_91910

Of course, these are short and thus are all “opening bids” but I could go onto several more zip codes. There are more like these in Lemon Grove and Spring Valley, but I just think the tenant-quality is a bit lower in SV.

The last one would definitely make a good flipper and maybe more (would have to see them first).

Happy shopping, prospective investors! Looks like what is out there is “hurry-and-wait” inventory so best to take a cue from spdrun and just place multiple offers and see if any bite!

[The-Shoveler]

Hey flu
Here is one JTR came up with, has 6 car garage not bad for a high end area.
1000/mo HOA is a little steep however.

Alarming

[earlyretirement]

[quote=spdrun]

Even in cities like NYC and Paris where many of our friends rent out, it’s easy to bypass rules if you know what you’re doing. You can let guests know ahead of time and also the MOST important person is typically the doorman.

If there is a doorman. Plenty of nicer non-doorman buildings in NY.

This being said, if the building is a co-op which doesn’t allow subleasing and the board gets a bug up its collective butthole about you, you could conceivably lose the place. Highly unlikely – they’re more likely to fine you or send you a nasty letter signed by an atty – but theoretically possible. Co-op isn’t real property: you’re buying shares in a nonprofit that owns the building and leasing your apt back for the cost of common charges, basically.[/quote]

Oh yeah in the co-ops it’s VERY risky and we don’t rent co-op places even though I have friends that do it successfully but they are mostly renting to the same people. For example, I have a good friend and he has a co-op but he rents to an executive that is always in NYC on business. He introduced him to his neighbor as his “brother” so he never has any problems. In fact, he has quite a dilemma now as this guy has become very close friends with his neighbor and the lie has gone on now a few years and they are debating whether to tell him he isn’t his brother.. LOL.

In Paris very few of the apartments we’ve rented had doormen. Mostly it’s a system where there is an electronic code to enter the main door and then a key to enter the interior door. We just stayed a month in the 7th in Paris and it was fabulous!

It’s really the way to go when traveling. You totally feel like a local vs. staying in a hotel. We haven’t been to a city yet where renting an apartment/house wasn’t possible.

[spdrun]

Oh yeah in the co-ops it’s VERY risky and we don’t rent co-op places even though I have friends that do it successfully but they are mostly renting to the same people.

Depends on the co-op. Some don’t care as long as you don’t rent to idiots who make noise at 4 am on a school night. Others will harass anyone who’s renting just because they can.

[Author]

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