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- This topic has 95 replies, 15 voices, and was last updated 11 years ago by joec.
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October 9, 2013 at 2:12 PM #20796October 9, 2013 at 3:44 PM #766599UCGalParticipant
I think you’ll probably have better luck finding something that works out, mathematically, with a condo, than a SFR.
I was in the hunt for something similar and targeted North Park, South Park, City Heights, Linda Vista, Clairemont, etc.
Unfortunately, the well maintained places were too expensive, and even the dumps were overpriced considering the work you’d have to put in…. relative to the rents you’d get.
There have been several Piggs who’ve had luck finding units that work for them. flu, AN, spdrun all picked up rentals in the past couple of years.
October 9, 2013 at 4:00 PM #766601spdrunParticipantAs long as you can rent it and have the money to fix it to a reasonably clean condition, old is just old. Not the end of the world.
October 9, 2013 at 4:18 PM #766603FlyerInHiGuestI agree spdrun, but there’s the ick factor or the slumlord factor.
I’d rather deal with clean professional tenants than low lives who always have a reason why rent it late.
With that said, I got enticed by the prospect of returns and bought a 4plex for about $135k in some small town in FL ( about 4400 sf total). I just want cash flow and don’t care about appreciation. Will see how that turns out.
October 9, 2013 at 4:37 PM #766604spdrunParticipantHaha, “professional tenant” can mean something else entirely, something that we Do Not Want(tm).
Question is, would a clean, well-maintained 1925 house necessarily be a deal-breaker in North Park? I’d imagine that there’s a certain crowd who lives there to whom “cute cottage” would be a selling point.
All this being said, a dear friend of mine (the one who initially introduced me to the charms of SD), was renting a 1920s or 30s back cottage in PB. Super clean, smart as hell, professional — probably would be a great tenant, so at least in one example, someone found a great tenant for an old house!
October 9, 2013 at 4:42 PM #766605anParticipantWe all have our own comfort zone as to where/who you want to rent to. Some people are fine w/ being slumlord and others prefer more white collar professionals. There’s no right or wrong. You probably will cash flow better being the slumlord, but that comes w/ risk. Higher risk, higher return. So, in order to give you a better pointer, you have to give a little more info. What kind of tenants you’re shooting for. Are you counting on appreciation or purely cash flow.
With that said, timing is also very important. Right now, I don’t think you can find many properties that can cash flow (assuming 20% down), unless you go to less desirable areas. Areas where the majority of the tenants are white collar tend to only break even or run at a slight loss. 2-4 years ago, it was much easier to find places that cash flow with only 20% down. I’m not sure if we’ll see those time again.
I like Mira Mesa, Racho Bernardo, Rancho Penasquitos. Basically places that are near high tech hub of Sorrento Valley and Rancho Bernardo.
October 9, 2013 at 6:18 PM #766614Eve39ParticipantI was just concerned about future repairs on an an older home. Just to confirm, I’m not eligible for a loan so I can only spend the 400K I have.
October 9, 2013 at 6:39 PM #766616spdrunParticipantIf you’re a US citizen, in reasonable financial shape, and the deal makes sense, a local bank will probably loan at 50-60% LTV without asking too many questions.
October 9, 2013 at 6:54 PM #766617FlyerInHiGuestSpd, “old” is not quite the right word. I think it means “with plenty of deferred maintenance and needing upgrades”. What kind of tenant can you attract with such a house? And how much can you charge?
October 9, 2013 at 6:56 PM #766618spdrunParticipantShe said “old” as in year 1925. Deferred maintenance is a separate issue, and should be addressed before renting the place, even if it takes a month or two.
October 9, 2013 at 7:07 PM #766619FlyerInHiGuestI think a good question to ask is “would you live in it yourself for the asking rent”.
As a landlord, I don’t like it when the tenant pool is such that it takes more than one person to qualify. More chance of one person suffering a setback and me being asked for forbearance.
6pack, you’re right, I’m in panel 8, always calculating things.
October 9, 2013 at 7:12 PM #766620Eve39ParticipantI’m not a US citizen so pretty sure I can’t get a loan. I think/hope I can find something to give me a reasonable monthly income, I’m just stuck on where else to look and between a house and a condo.
October 9, 2013 at 7:34 PM #766623FlyerInHiGuestI second AN’s area recommendation.
This one is near Qualcomm. I think you can rent it out for more than a similarly priced house in north park. List it on craigslist and you can rent it out in a weekend. Make it look good and modern and you can get more.
But then again, late to buy now. Couple years ago would have been best. Prices are up like $100k.
http://www.sdlookup.com/MLS-130052622-7270_Calle_Cristobal_St_54_San_Diego_CA_92126
October 9, 2013 at 7:51 PM #766624Eve39ParticipantThat’s helpful, thank you. I’ll put it on my viewing list.
October 9, 2013 at 9:45 PM #766632allParticipant[quote=Eve39]I’m not a US citizen so pretty sure I can’t get a loan. I think/hope I can find something to give me a reasonable monthly income, I’m just stuck on where else to look and between a house and a condo.[/quote]
Permanent resident is just as good. H1B used to be good enough in 2003-2007, then not so much 2008-2010. I’m not sure how things are right now.
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