Home › Forums › Financial Markets/Economics › Investment property…Coastal vs. Escondido
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August 15, 2011 at 10:19 PM #720945August 15, 2011 at 10:20 PM #719739
sdrealtor
Participant[quote=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.[/quote]
OK…one last time….WTF?
August 15, 2011 at 10:20 PM #719832Participant[quote=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.[/quote]
OK…one last time….WTF?
August 15, 2011 at 10:20 PM #720432Participant[quote=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.[/quote]
OK…one last time….WTF?
August 15, 2011 at 10:20 PM #720586Participant[quote=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.[/quote]
OK…one last time….WTF?
August 15, 2011 at 10:20 PM #720950Participant[quote=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.[/quote]
OK…one last time….WTF?
August 15, 2011 at 10:25 PM #719744jstoesz
ParticipantCan I just restate what has been said numerous times on here…
BG, you need to try living in some other place than s. county san diego. It really is a hole, despite all your protesting. Move to Portland or Denver or Minneapolis or eastern Sac! (yes yes I know my bias is showing) You will see that life is so much cleaner and safer for the money.
August 15, 2011 at 10:25 PM #719837ParticipantCan I just restate what has been said numerous times on here…
BG, you need to try living in some other place than s. county san diego. It really is a hole, despite all your protesting. Move to Portland or Denver or Minneapolis or eastern Sac! (yes yes I know my bias is showing) You will see that life is so much cleaner and safer for the money.
August 15, 2011 at 10:25 PM #720437ParticipantCan I just restate what has been said numerous times on here…
BG, you need to try living in some other place than s. county san diego. It really is a hole, despite all your protesting. Move to Portland or Denver or Minneapolis or eastern Sac! (yes yes I know my bias is showing) You will see that life is so much cleaner and safer for the money.
August 15, 2011 at 10:25 PM #720591ParticipantCan I just restate what has been said numerous times on here…
BG, you need to try living in some other place than s. county san diego. It really is a hole, despite all your protesting. Move to Portland or Denver or Minneapolis or eastern Sac! (yes yes I know my bias is showing) You will see that life is so much cleaner and safer for the money.
August 15, 2011 at 10:25 PM #720955ParticipantCan I just restate what has been said numerous times on here…
BG, you need to try living in some other place than s. county san diego. It really is a hole, despite all your protesting. Move to Portland or Denver or Minneapolis or eastern Sac! (yes yes I know my bias is showing) You will see that life is so much cleaner and safer for the money.
August 15, 2011 at 10:41 PM #719769CA renter
Participant[quote=jstoesz]Can I just restate what has been said numerous times on here…
BG, you need to try living in some other place than s. county san diego. It really is a hole, despite all your protesting. Move to Portland or Denver or Minneapolis or eastern Sac! (yes yes I know my bias is showing) You will see that life is so much cleaner and safer for the money.[/quote]
So, how are you liking the Sacramento area so far? Any temptation to move back, or totally laughing about the fact that you ever wanted to live in SD in the first place?
August 15, 2011 at 10:41 PM #719863Participant[quote=jstoesz]Can I just restate what has been said numerous times on here…
BG, you need to try living in some other place than s. county san diego. It really is a hole, despite all your protesting. Move to Portland or Denver or Minneapolis or eastern Sac! (yes yes I know my bias is showing) You will see that life is so much cleaner and safer for the money.[/quote]
So, how are you liking the Sacramento area so far? Any temptation to move back, or totally laughing about the fact that you ever wanted to live in SD in the first place?
August 15, 2011 at 10:41 PM #720461Participant[quote=jstoesz]Can I just restate what has been said numerous times on here…
BG, you need to try living in some other place than s. county san diego. It really is a hole, despite all your protesting. Move to Portland or Denver or Minneapolis or eastern Sac! (yes yes I know my bias is showing) You will see that life is so much cleaner and safer for the money.[/quote]
So, how are you liking the Sacramento area so far? Any temptation to move back, or totally laughing about the fact that you ever wanted to live in SD in the first place?
August 15, 2011 at 10:41 PM #720616Participant[quote=jstoesz]Can I just restate what has been said numerous times on here…
BG, you need to try living in some other place than s. county san diego. It really is a hole, despite all your protesting. Move to Portland or Denver or Minneapolis or eastern Sac! (yes yes I know my bias is showing) You will see that life is so much cleaner and safer for the money.[/quote]
So, how are you liking the Sacramento area so far? Any temptation to move back, or totally laughing about the fact that you ever wanted to live in SD in the first place?
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