Ivy Gate massacre

[Raybyrnes]

This raises a second question, Can you insure you loss of income in the event of the fire. If you are using the rensts to cover a portion of the mortgage then I would think that you would not only have to insure the property but would also have to carry a policy that would insure the income for 24 months. Otherwise you would need to carry a reserve equal to 2 years rent to offset this type of risk.

[Bugs]

As far as rentals go, it seems to me that you’ll find the most favorable relationship between rents and sale prices in the lower priced neighborhoods. If a 3bd home in 92113 rents for $1,700 and sells for under $280k, why would you bother with a $500k home in 92126 that only rents for a couple hundred bucks more?

The pool of renters at $1700/mo is a lot larger than the pool of renters at $2,000, let alone $2,500.

[Bugs]

As far as rentals go, it seems to me that you’ll find the most favorable relationship between rents and sale prices in the lower priced neighborhoods. If a 3bd home in 92113 rents for $1,700 and sells for under $280k, why would you bother with a $500k home in 92126 that only rents for a couple hundred bucks more?

The pool of renters at $1700/mo is a lot larger than the pool of renters at $2,000, let alone $2,500.

[Bugs]

As far as rentals go, it seems to me that you’ll find the most favorable relationship between rents and sale prices in the lower priced neighborhoods. If a 3bd home in 92113 rents for $1,700 and sells for under $280k, why would you bother with a $500k home in 92126 that only rents for a couple hundred bucks more?

The pool of renters at $1700/mo is a lot larger than the pool of renters at $2,000, let alone $2,500.

[Bugs]

As far as rentals go, it seems to me that you’ll find the most favorable relationship between rents and sale prices in the lower priced neighborhoods. If a 3bd home in 92113 rents for $1,700 and sells for under $280k, why would you bother with a $500k home in 92126 that only rents for a couple hundred bucks more?

The pool of renters at $1700/mo is a lot larger than the pool of renters at $2,000, let alone $2,500.

[Bugs]

As far as rentals go, it seems to me that you’ll find the most favorable relationship between rents and sale prices in the lower priced neighborhoods. If a 3bd home in 92113 rents for $1,700 and sells for under $280k, why would you bother with a $500k home in 92126 that only rents for a couple hundred bucks more?

The pool of renters at $1700/mo is a lot larger than the pool of renters at $2,000, let alone $2,500.

[SD Realtor]

Actually Bugs we are seeing prices for 3/2 in MM at the 400k and below level now. As bad as people talk about MM it is a step up above 92113.

However people who are serious about generating income from rentals would be well served to listen to your point which is to use as little of your own money as possible.

In terms of my own search for possible rental investments I am sitting on the sidelines for awhile now. IMO San Diego does not pose many viable opportunity for rentals yet but they are slowly getting there. Actually Temec will get their first.

SD Realtor

[SD Realtor]

Actually Bugs we are seeing prices for 3/2 in MM at the 400k and below level now. As bad as people talk about MM it is a step up above 92113.

However people who are serious about generating income from rentals would be well served to listen to your point which is to use as little of your own money as possible.

In terms of my own search for possible rental investments I am sitting on the sidelines for awhile now. IMO San Diego does not pose many viable opportunity for rentals yet but they are slowly getting there. Actually Temec will get their first.

SD Realtor

[SD Realtor]

Actually Bugs we are seeing prices for 3/2 in MM at the 400k and below level now. As bad as people talk about MM it is a step up above 92113.

However people who are serious about generating income from rentals would be well served to listen to your point which is to use as little of your own money as possible.

In terms of my own search for possible rental investments I am sitting on the sidelines for awhile now. IMO San Diego does not pose many viable opportunity for rentals yet but they are slowly getting there. Actually Temec will get their first.

SD Realtor

[SD Realtor]

Actually Bugs we are seeing prices for 3/2 in MM at the 400k and below level now. As bad as people talk about MM it is a step up above 92113.

However people who are serious about generating income from rentals would be well served to listen to your point which is to use as little of your own money as possible.

In terms of my own search for possible rental investments I am sitting on the sidelines for awhile now. IMO San Diego does not pose many viable opportunity for rentals yet but they are slowly getting there. Actually Temec will get their first.

SD Realtor

[SD Realtor]

Actually Bugs we are seeing prices for 3/2 in MM at the 400k and below level now. As bad as people talk about MM it is a step up above 92113.

However people who are serious about generating income from rentals would be well served to listen to your point which is to use as little of your own money as possible.

In terms of my own search for possible rental investments I am sitting on the sidelines for awhile now. IMO San Diego does not pose many viable opportunity for rentals yet but they are slowly getting there. Actually Temec will get their first.

SD Realtor

[EconProf]

BobS
I bicycle through that neighborhood occassionally, and yes, there are a lot of houses for sale there.
They were all sold at the peak of the bubble, and probably with lots of leverage, so will take the biggest hits now on the downside.
They also strike me as the kind of product that will be shunned in the future…monster houses close together with crowded streetscapes. Recessions always force a healthy downsizing of our appetites, something we Americans can use right now.
Also, they would be terrible rentals…do the numbers on costs vs. rents and they make no sense whatsoever.

[EconProf]

BobS
I bicycle through that neighborhood occassionally, and yes, there are a lot of houses for sale there.
They were all sold at the peak of the bubble, and probably with lots of leverage, so will take the biggest hits now on the downside.
They also strike me as the kind of product that will be shunned in the future…monster houses close together with crowded streetscapes. Recessions always force a healthy downsizing of our appetites, something we Americans can use right now.
Also, they would be terrible rentals…do the numbers on costs vs. rents and they make no sense whatsoever.

[EconProf]

BobS
I bicycle through that neighborhood occassionally, and yes, there are a lot of houses for sale there.
They were all sold at the peak of the bubble, and probably with lots of leverage, so will take the biggest hits now on the downside.
They also strike me as the kind of product that will be shunned in the future…monster houses close together with crowded streetscapes. Recessions always force a healthy downsizing of our appetites, something we Americans can use right now.
Also, they would be terrible rentals…do the numbers on costs vs. rents and they make no sense whatsoever.

[EconProf]

BobS
I bicycle through that neighborhood occassionally, and yes, there are a lot of houses for sale there.
They were all sold at the peak of the bubble, and probably with lots of leverage, so will take the biggest hits now on the downside.
They also strike me as the kind of product that will be shunned in the future…monster houses close together with crowded streetscapes. Recessions always force a healthy downsizing of our appetites, something we Americans can use right now.
Also, they would be terrible rentals…do the numbers on costs vs. rents and they make no sense whatsoever.

[Author]

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