How much would you offer for this condo

[nostradamus]

Well it couldn’t hurt to go take a look and see what actually needs to be done on the condo. Usually the photos REAs post are the ones that make it look good. Your condo’s photos don’t look good at all so imagine what they’re not showing you.

Run the faucets, flush the toilets, turn on/off everything electrical, run any remaining appliances, check for mold or wood rot or termites or carpet beetles, look for dark spots on the walls close to the ceiling (indicating roof leaks), talk to the upstairs/downstairs neighbors, and video/photo everything for later review/negotiation. Walk around the property and look for graffiti or junk or hazards. See if any cars were broken into, see if the public areas will require “special assessment” like new pool heater, resurfacing the parking lot, repainting the exterior, fix leaking roofs, etc.

I personally don’t like anything too close to the freeways. For MM I don’t like much East of Cam. Ruiz. I think you can find some bargains between Cam. Ruiz and Cam. Santa Fe, to the South of Mira Mesa Blvd. In a year or two you can find bargains to the North of MMB in that area. This is all IMO. One reason I like West of Cam Ruiz is because it is close enough to Sorrento Valley to get good renters, yet it is also close enough to Vons/Seafood City/Edwards Cinemas etc.

[surveyor]

gold coast

I’m a little familiar with the area. As long as you price the rent appropriately, you should not have a problem finding tenants. Mira Mesa has a low vacancy rate. Try not to choose single college students. I would recommend a small family, they tend to be more stable and not prone to wrecking the place.

From my research (take a look at zilpy.com), the property might fetch around $1400 to $1500 per month rent (although I’ve found zilpy tends to be around 10% over the market price).

There is nothing wrong with expecting appreciation if you are planning on holding the property for over 5 years. A 4% appreciation rate over 10 years is not unreasonable for this property.

I would try to bargain down hard as much as possible, but even at $120k, it sounds like a good investment. The numbers look good.

[surveyor]

gold coast

I’m a little familiar with the area. As long as you price the rent appropriately, you should not have a problem finding tenants. Mira Mesa has a low vacancy rate. Try not to choose single college students. I would recommend a small family, they tend to be more stable and not prone to wrecking the place.

From my research (take a look at zilpy.com), the property might fetch around $1400 to $1500 per month rent (although I’ve found zilpy tends to be around 10% over the market price).

There is nothing wrong with expecting appreciation if you are planning on holding the property for over 5 years. A 4% appreciation rate over 10 years is not unreasonable for this property.

I would try to bargain down hard as much as possible, but even at $120k, it sounds like a good investment. The numbers look good.

[surveyor]

gold coast

I’m a little familiar with the area. As long as you price the rent appropriately, you should not have a problem finding tenants. Mira Mesa has a low vacancy rate. Try not to choose single college students. I would recommend a small family, they tend to be more stable and not prone to wrecking the place.

From my research (take a look at zilpy.com), the property might fetch around $1400 to $1500 per month rent (although I’ve found zilpy tends to be around 10% over the market price).

There is nothing wrong with expecting appreciation if you are planning on holding the property for over 5 years. A 4% appreciation rate over 10 years is not unreasonable for this property.

I would try to bargain down hard as much as possible, but even at $120k, it sounds like a good investment. The numbers look good.

[surveyor]

gold coast

I’m a little familiar with the area. As long as you price the rent appropriately, you should not have a problem finding tenants. Mira Mesa has a low vacancy rate. Try not to choose single college students. I would recommend a small family, they tend to be more stable and not prone to wrecking the place.

From my research (take a look at zilpy.com), the property might fetch around $1400 to $1500 per month rent (although I’ve found zilpy tends to be around 10% over the market price).

There is nothing wrong with expecting appreciation if you are planning on holding the property for over 5 years. A 4% appreciation rate over 10 years is not unreasonable for this property.

I would try to bargain down hard as much as possible, but even at $120k, it sounds like a good investment. The numbers look good.

[surveyor]

gold coast

I’m a little familiar with the area. As long as you price the rent appropriately, you should not have a problem finding tenants. Mira Mesa has a low vacancy rate. Try not to choose single college students. I would recommend a small family, they tend to be more stable and not prone to wrecking the place.

From my research (take a look at zilpy.com), the property might fetch around $1400 to $1500 per month rent (although I’ve found zilpy tends to be around 10% over the market price).

There is nothing wrong with expecting appreciation if you are planning on holding the property for over 5 years. A 4% appreciation rate over 10 years is not unreasonable for this property.

I would try to bargain down hard as much as possible, but even at $120k, it sounds like a good investment. The numbers look good.

[surveyor]

oh btw

I estimated the repair cost:
bathroom: $3,000
Washer/dryer: $1,000
Frig: $500
Dishwasher: $400
Range: %500
Countertop and Cabinets under: $10,000.
Flooring: $4,000
So it is close to $20,000.

All those items above can be depreciated as well (chattel depreciation). The IRS has guidelines on how you can depreciate it, but it could give you around $6000 in taxes back…

[surveyor]

oh btw

I estimated the repair cost:
bathroom: $3,000
Washer/dryer: $1,000
Frig: $500
Dishwasher: $400
Range: %500
Countertop and Cabinets under: $10,000.
Flooring: $4,000
So it is close to $20,000.

All those items above can be depreciated as well (chattel depreciation). The IRS has guidelines on how you can depreciate it, but it could give you around $6000 in taxes back…

[surveyor]

oh btw

I estimated the repair cost:
bathroom: $3,000
Washer/dryer: $1,000
Frig: $500
Dishwasher: $400
Range: %500
Countertop and Cabinets under: $10,000.
Flooring: $4,000
So it is close to $20,000.

All those items above can be depreciated as well (chattel depreciation). The IRS has guidelines on how you can depreciate it, but it could give you around $6000 in taxes back…

[surveyor]

oh btw

I estimated the repair cost:
bathroom: $3,000
Washer/dryer: $1,000
Frig: $500
Dishwasher: $400
Range: %500
Countertop and Cabinets under: $10,000.
Flooring: $4,000
So it is close to $20,000.

All those items above can be depreciated as well (chattel depreciation). The IRS has guidelines on how you can depreciate it, but it could give you around $6000 in taxes back…

[surveyor]

oh btw

I estimated the repair cost:
bathroom: $3,000
Washer/dryer: $1,000
Frig: $500
Dishwasher: $400
Range: %500
Countertop and Cabinets under: $10,000.
Flooring: $4,000
So it is close to $20,000.

All those items above can be depreciated as well (chattel depreciation). The IRS has guidelines on how you can depreciate it, but it could give you around $6000 in taxes back…

[nostradamus]

question: must one expect appreciation in order to turn a profit?

Put 20% down (if $120k he puts down $24k). Rent for enough to break even. In 30 years he owns the place and only paid $24k for it. That’s a 500% return on investment. Is this too simplistic? If it appreciated during that time there’s icing for the cake.

I’m not a bull and not pushing this idea, just asking. I wouldn’t put all my eggs in this basket either but would include it as part of a diverse portfolio.

[nostradamus]

question: must one expect appreciation in order to turn a profit?

Put 20% down (if $120k he puts down $24k). Rent for enough to break even. In 30 years he owns the place and only paid $24k for it. That’s a 500% return on investment. Is this too simplistic? If it appreciated during that time there’s icing for the cake.

I’m not a bull and not pushing this idea, just asking. I wouldn’t put all my eggs in this basket either but would include it as part of a diverse portfolio.

[nostradamus]

question: must one expect appreciation in order to turn a profit?

Put 20% down (if $120k he puts down $24k). Rent for enough to break even. In 30 years he owns the place and only paid $24k for it. That’s a 500% return on investment. Is this too simplistic? If it appreciated during that time there’s icing for the cake.

I’m not a bull and not pushing this idea, just asking. I wouldn’t put all my eggs in this basket either but would include it as part of a diverse portfolio.

[nostradamus]

question: must one expect appreciation in order to turn a profit?

Put 20% down (if $120k he puts down $24k). Rent for enough to break even. In 30 years he owns the place and only paid $24k for it. That’s a 500% return on investment. Is this too simplistic? If it appreciated during that time there’s icing for the cake.

I’m not a bull and not pushing this idea, just asking. I wouldn’t put all my eggs in this basket either but would include it as part of a diverse portfolio.

[Author]

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