Investment property…Coastal vs. Escondido

[ctr70]

I also think it is a myth that the average retail buyer can waltz out there and buy something 20% below market off the MLS with his Realtor. From what I see in the market, there are really only 2 sources of true under market deals: 1. Trustee sale auctions (all cash), 2. Major fixer disasters that mostly the flippers buy with hard money or cash.

Most retail MLS buyers getting mortgages to buy even if they spend a ton of time looking and make a lot of offers will likely pay 95% or more of market. A big mistake many make is buying a “fixer upper” that needs $30k in fix for only $30k less than the similar fixed up house, thinking they are getting a deal. Why not just buy the clean one and save yourself all the work! And finance the costs of fix up done by someone else at 4% for 30 years vs. paying it out of your pocket. Now if you get it $60k under market and it needs $20k fix, that is getting better.

Berishgirl, thanks for the info on your rental across the vacant lot. That is a good warning, you can’t be too careful with location. But I still do not see the logic and where the ROI is on a $265k 70 year old house that gets $1,600 in rent:) Break that out for me. Now a $100k house that gets $1,250 in rent, that is more like it.

[bearishgurl]

[quote=ctr70]I also think it is a myth that the average retail buyer can waltz out there and buy something 20% below market off the MLS with his Realtor. From what I see in the market, there are really only 2 sources of true under market deals: 1. Trustee sale auctions (all cash), 2. Major fixer disasters that mostly the flippers buy with hard money or cash.[/quote]

You forgot contacting an owner directly and making an offer on a vacant or soon-to-be-vacant property in your local area. The property is never listed. Perhaps you already know the property, the former or current tenants, and/or the seller!

Yes, all cash (or lucrative [for the seller] OCB) are win-win situations for both parties, here.

[quote=ctr70]Most retail MLS buyers getting mortgages to buy even if they spend a ton of time looking and make a lot of offers will likely pay 95% or more of market. A big mistake many make is buying a “fixer upper” that needs $30k in fix for only $30k less than the similar fixed up house, thinking they are getting a deal. Why not just buy the clean one and save yourself all the work! And finance the costs of fix up done by someone else at 4% for 30 years vs. paying it out of your pocket. Now if you get it $60k under market and it needs $20k fix, that is getting better.[/quote]

What “seems” to be $30k of work to a potential buyer w/o the time or talent to DIY is actually $8500 to a single or couple with both.

[quote=ctr70]Berishgirl, thanks for the info on your rental across the vacant lot. That is a good warning, you can’t be too careful with location. But I still do not see the logic and where the ROI is on a $265k 70 year old house that gets $1,600 in rent:) Break that out for me. Now a $100k house that gets $1,250 in rent, that is more like it.[/quote]

I am speaking of a 50-60 year-old 3/2/2 1500+ sf SFR on a +/- 7500 sf lot on or within 1 block of 2 bus lines renting for $1800 – $1850.

[bearishgurl]

[quote=ctr70]I also think it is a myth that the average retail buyer can waltz out there and buy something 20% below market off the MLS with his Realtor. From what I see in the market, there are really only 2 sources of true under market deals: 1. Trustee sale auctions (all cash), 2. Major fixer disasters that mostly the flippers buy with hard money or cash.[/quote]

You forgot contacting an owner directly and making an offer on a vacant or soon-to-be-vacant property in your local area. The property is never listed. Perhaps you already know the property, the former or current tenants, and/or the seller!

Yes, all cash (or lucrative [for the seller] OCB) are win-win situations for both parties, here.

[quote=ctr70]Most retail MLS buyers getting mortgages to buy even if they spend a ton of time looking and make a lot of offers will likely pay 95% or more of market. A big mistake many make is buying a “fixer upper” that needs $30k in fix for only $30k less than the similar fixed up house, thinking they are getting a deal. Why not just buy the clean one and save yourself all the work! And finance the costs of fix up done by someone else at 4% for 30 years vs. paying it out of your pocket. Now if you get it $60k under market and it needs $20k fix, that is getting better.[/quote]

What “seems” to be $30k of work to a potential buyer w/o the time or talent to DIY is actually $8500 to a single or couple with both.

[quote=ctr70]Berishgirl, thanks for the info on your rental across the vacant lot. That is a good warning, you can’t be too careful with location. But I still do not see the logic and where the ROI is on a $265k 70 year old house that gets $1,600 in rent:) Break that out for me. Now a $100k house that gets $1,250 in rent, that is more like it.[/quote]

I am speaking of a 50-60 year-old 3/2/2 1500+ sf SFR on a +/- 7500 sf lot on or within 1 block of 2 bus lines renting for $1800 – $1850.

[bearishgurl]

[quote=ctr70]I also think it is a myth that the average retail buyer can waltz out there and buy something 20% below market off the MLS with his Realtor. From what I see in the market, there are really only 2 sources of true under market deals: 1. Trustee sale auctions (all cash), 2. Major fixer disasters that mostly the flippers buy with hard money or cash.[/quote]

You forgot contacting an owner directly and making an offer on a vacant or soon-to-be-vacant property in your local area. The property is never listed. Perhaps you already know the property, the former or current tenants, and/or the seller!

Yes, all cash (or lucrative [for the seller] OCB) are win-win situations for both parties, here.

[quote=ctr70]Most retail MLS buyers getting mortgages to buy even if they spend a ton of time looking and make a lot of offers will likely pay 95% or more of market. A big mistake many make is buying a “fixer upper” that needs $30k in fix for only $30k less than the similar fixed up house, thinking they are getting a deal. Why not just buy the clean one and save yourself all the work! And finance the costs of fix up done by someone else at 4% for 30 years vs. paying it out of your pocket. Now if you get it $60k under market and it needs $20k fix, that is getting better.[/quote]

What “seems” to be $30k of work to a potential buyer w/o the time or talent to DIY is actually $8500 to a single or couple with both.

[quote=ctr70]Berishgirl, thanks for the info on your rental across the vacant lot. That is a good warning, you can’t be too careful with location. But I still do not see the logic and where the ROI is on a $265k 70 year old house that gets $1,600 in rent:) Break that out for me. Now a $100k house that gets $1,250 in rent, that is more like it.[/quote]

I am speaking of a 50-60 year-old 3/2/2 1500+ sf SFR on a +/- 7500 sf lot on or within 1 block of 2 bus lines renting for $1800 – $1850.

[bearishgurl]

[quote=ctr70]I also think it is a myth that the average retail buyer can waltz out there and buy something 20% below market off the MLS with his Realtor. From what I see in the market, there are really only 2 sources of true under market deals: 1. Trustee sale auctions (all cash), 2. Major fixer disasters that mostly the flippers buy with hard money or cash.[/quote]

You forgot contacting an owner directly and making an offer on a vacant or soon-to-be-vacant property in your local area. The property is never listed. Perhaps you already know the property, the former or current tenants, and/or the seller!

Yes, all cash (or lucrative [for the seller] OCB) are win-win situations for both parties, here.

[quote=ctr70]Most retail MLS buyers getting mortgages to buy even if they spend a ton of time looking and make a lot of offers will likely pay 95% or more of market. A big mistake many make is buying a “fixer upper” that needs $30k in fix for only $30k less than the similar fixed up house, thinking they are getting a deal. Why not just buy the clean one and save yourself all the work! And finance the costs of fix up done by someone else at 4% for 30 years vs. paying it out of your pocket. Now if you get it $60k under market and it needs $20k fix, that is getting better.[/quote]

What “seems” to be $30k of work to a potential buyer w/o the time or talent to DIY is actually $8500 to a single or couple with both.

[quote=ctr70]Berishgirl, thanks for the info on your rental across the vacant lot. That is a good warning, you can’t be too careful with location. But I still do not see the logic and where the ROI is on a $265k 70 year old house that gets $1,600 in rent:) Break that out for me. Now a $100k house that gets $1,250 in rent, that is more like it.[/quote]

I am speaking of a 50-60 year-old 3/2/2 1500+ sf SFR on a +/- 7500 sf lot on or within 1 block of 2 bus lines renting for $1800 – $1850.

[bearishgurl]

[quote=ctr70]I also think it is a myth that the average retail buyer can waltz out there and buy something 20% below market off the MLS with his Realtor. From what I see in the market, there are really only 2 sources of true under market deals: 1. Trustee sale auctions (all cash), 2. Major fixer disasters that mostly the flippers buy with hard money or cash.[/quote]

You forgot contacting an owner directly and making an offer on a vacant or soon-to-be-vacant property in your local area. The property is never listed. Perhaps you already know the property, the former or current tenants, and/or the seller!

Yes, all cash (or lucrative [for the seller] OCB) are win-win situations for both parties, here.

[quote=ctr70]Most retail MLS buyers getting mortgages to buy even if they spend a ton of time looking and make a lot of offers will likely pay 95% or more of market. A big mistake many make is buying a “fixer upper” that needs $30k in fix for only $30k less than the similar fixed up house, thinking they are getting a deal. Why not just buy the clean one and save yourself all the work! And finance the costs of fix up done by someone else at 4% for 30 years vs. paying it out of your pocket. Now if you get it $60k under market and it needs $20k fix, that is getting better.[/quote]

What “seems” to be $30k of work to a potential buyer w/o the time or talent to DIY is actually $8500 to a single or couple with both.

[quote=ctr70]Berishgirl, thanks for the info on your rental across the vacant lot. That is a good warning, you can’t be too careful with location. But I still do not see the logic and where the ROI is on a $265k 70 year old house that gets $1,600 in rent:) Break that out for me. Now a $100k house that gets $1,250 in rent, that is more like it.[/quote]

I am speaking of a 50-60 year-old 3/2/2 1500+ sf SFR on a +/- 7500 sf lot on or within 1 block of 2 bus lines renting for $1800 – $1850.

[sdrealtor]

[quote=bearishgurl][quote=sdsurfer]Is this in San Diego? I guess I live a pretty sheltered life up in North County.[/quote]

Yes, but it was more than twenty years ago that I sold. SD does not have these same problems today due to community policing policies. North County is/was not immune from property and other crimes. Some pockets of the entire county have more crime than others. Open and notorious drug sales and prostitution in SD County are way down from 20 years ago, though.

I am really not averse to owning rental property at all. If I had the $$, I wouldn’t mind purchasing a nice mid-century rental house for about $265K within walking distance from me (near dtn Chula Vista) and manage it myself. For what you get (excellent pier and post construction and “oversize lot”), these properties are now priced very reasonably, IMO. The type of families these houses attract are local and very stable with many family ties in the immediate area. However, I would prefer to pay all cash and just use the rental income to supplement my retirement income.

My old rental(s) were five minutes from 32nd Street Naval Station. These small communities of SD have been significantly cleaned up since then.[/quote]

WTF?

[sdrealtor]

[quote=bearishgurl][quote=sdsurfer]Is this in San Diego? I guess I live a pretty sheltered life up in North County.[/quote]

Yes, but it was more than twenty years ago that I sold. SD does not have these same problems today due to community policing policies. North County is/was not immune from property and other crimes. Some pockets of the entire county have more crime than others. Open and notorious drug sales and prostitution in SD County are way down from 20 years ago, though.

I am really not averse to owning rental property at all. If I had the $$, I wouldn’t mind purchasing a nice mid-century rental house for about $265K within walking distance from me (near dtn Chula Vista) and manage it myself. For what you get (excellent pier and post construction and “oversize lot”), these properties are now priced very reasonably, IMO. The type of families these houses attract are local and very stable with many family ties in the immediate area. However, I would prefer to pay all cash and just use the rental income to supplement my retirement income.

My old rental(s) were five minutes from 32nd Street Naval Station. These small communities of SD have been significantly cleaned up since then.[/quote]

WTF?

[sdrealtor]

[quote=bearishgurl][quote=sdsurfer]Is this in San Diego? I guess I live a pretty sheltered life up in North County.[/quote]

Yes, but it was more than twenty years ago that I sold. SD does not have these same problems today due to community policing policies. North County is/was not immune from property and other crimes. Some pockets of the entire county have more crime than others. Open and notorious drug sales and prostitution in SD County are way down from 20 years ago, though.

I am really not averse to owning rental property at all. If I had the $$, I wouldn’t mind purchasing a nice mid-century rental house for about $265K within walking distance from me (near dtn Chula Vista) and manage it myself. For what you get (excellent pier and post construction and “oversize lot”), these properties are now priced very reasonably, IMO. The type of families these houses attract are local and very stable with many family ties in the immediate area. However, I would prefer to pay all cash and just use the rental income to supplement my retirement income.

My old rental(s) were five minutes from 32nd Street Naval Station. These small communities of SD have been significantly cleaned up since then.[/quote]

WTF?

[sdrealtor]

[quote=bearishgurl][quote=sdsurfer]Is this in San Diego? I guess I live a pretty sheltered life up in North County.[/quote]

Yes, but it was more than twenty years ago that I sold. SD does not have these same problems today due to community policing policies. North County is/was not immune from property and other crimes. Some pockets of the entire county have more crime than others. Open and notorious drug sales and prostitution in SD County are way down from 20 years ago, though.

I am really not averse to owning rental property at all. If I had the $$, I wouldn’t mind purchasing a nice mid-century rental house for about $265K within walking distance from me (near dtn Chula Vista) and manage it myself. For what you get (excellent pier and post construction and “oversize lot”), these properties are now priced very reasonably, IMO. The type of families these houses attract are local and very stable with many family ties in the immediate area. However, I would prefer to pay all cash and just use the rental income to supplement my retirement income.

My old rental(s) were five minutes from 32nd Street Naval Station. These small communities of SD have been significantly cleaned up since then.[/quote]

WTF?

[sdrealtor]

[quote=bearishgurl][quote=sdsurfer]Is this in San Diego? I guess I live a pretty sheltered life up in North County.[/quote]

Yes, but it was more than twenty years ago that I sold. SD does not have these same problems today due to community policing policies. North County is/was not immune from property and other crimes. Some pockets of the entire county have more crime than others. Open and notorious drug sales and prostitution in SD County are way down from 20 years ago, though.

I am really not averse to owning rental property at all. If I had the $$, I wouldn’t mind purchasing a nice mid-century rental house for about $265K within walking distance from me (near dtn Chula Vista) and manage it myself. For what you get (excellent pier and post construction and “oversize lot”), these properties are now priced very reasonably, IMO. The type of families these houses attract are local and very stable with many family ties in the immediate area. However, I would prefer to pay all cash and just use the rental income to supplement my retirement income.

My old rental(s) were five minutes from 32nd Street Naval Station. These small communities of SD have been significantly cleaned up since then.[/quote]

WTF?

[sdrealtor]

[quote=bearishgurl]I would not consider 91910 a “C” area (as ctr70 was discussing above). I would consider it an “A” or “B” area, depending on type of house and location.[/quote]

WTF?

[sdrealtor]

[quote=bearishgurl]I would not consider 91910 a “C” area (as ctr70 was discussing above). I would consider it an “A” or “B” area, depending on type of house and location.[/quote]

WTF?

[sdrealtor]

[quote=bearishgurl]I would not consider 91910 a “C” area (as ctr70 was discussing above). I would consider it an “A” or “B” area, depending on type of house and location.[/quote]

WTF?

[sdrealtor]

[quote=bearishgurl]I would not consider 91910 a “C” area (as ctr70 was discussing above). I would consider it an “A” or “B” area, depending on type of house and location.[/quote]

WTF?

[Author]

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