Mira Mesa, Calle Cristobal house for under $500K

[an]

DWCAP, I think your calculation is a little off. A $260k loan w/ 6.25% rate @ 30 year fixed should yield P&I of $1600/month. With 20% down, you’re looking at payment of $1280/month. As you said, a typical 3/2 will rent for around $1800/month.

I agree on the typical renters in this area, but I don’t agree on the 125X rent multiple. It does not take mortgage rate into consideration. One example is at the bottom of last cycle around 1997ish (which now looking back, put prices at undervalued), a typical rent for a 3/2 in MM run for about $1200/month. The price of such homes were around $160k-ish. But interest rates were around 9%. $160k @ 9% over 30 years would be around $1300/month mortgage. Today, such house would rent for around $1800/month. So to keep the rent vs monthly mortgage similar to the bottom of last cycle (which is 10% > rent), you’re looking at house price of around $320k, not $260k you suggested or even $200k if you use the 125X multiple.

Regarding lot size, I don’t think it’s that small when you take into consideration the size of the house. The typical lot is around 5000 sq-ft with houses around 1400 sq-ft. I’ve seen plenty of houses in CV, 4S, PQ, RB, etc, that have lot size around 5000-6000 sq-ft but squeezed houses 2-3X the size.

[an]

esmith, 92121 zip code is Sorrento Valley, not Mira Mesa. The road is also called Sorrento Valley Blvd., not Calle Cristobal. The name change at the 3 way intersection with Camino Santa Fe. I don’t know which school Sorrento Valley belongs to, but I think it also belongs to schools in Mira Mesa. All houses in Sorrento Valley right now are $650k-$1.1M for houses ranging from 2000sq-ft to 3000sq-ft. Similarly, a 2000sq-ft just down the street on Calle Cristobal w/ a 92126 zip code is currently going for around $550-600k vs $650k+.

[an]

esmith, 92121 zip code is Sorrento Valley, not Mira Mesa. The road is also called Sorrento Valley Blvd., not Calle Cristobal. The name change at the 3 way intersection with Camino Santa Fe. I don’t know which school Sorrento Valley belongs to, but I think it also belongs to schools in Mira Mesa. All houses in Sorrento Valley right now are $650k-$1.1M for houses ranging from 2000sq-ft to 3000sq-ft. Similarly, a 2000sq-ft just down the street on Calle Cristobal w/ a 92126 zip code is currently going for around $550-600k vs $650k+.

[an]

esmith, 92121 zip code is Sorrento Valley, not Mira Mesa. The road is also called Sorrento Valley Blvd., not Calle Cristobal. The name change at the 3 way intersection with Camino Santa Fe. I don’t know which school Sorrento Valley belongs to, but I think it also belongs to schools in Mira Mesa. All houses in Sorrento Valley right now are $650k-$1.1M for houses ranging from 2000sq-ft to 3000sq-ft. Similarly, a 2000sq-ft just down the street on Calle Cristobal w/ a 92126 zip code is currently going for around $550-600k vs $650k+.

[an]

esmith, 92121 zip code is Sorrento Valley, not Mira Mesa. The road is also called Sorrento Valley Blvd., not Calle Cristobal. The name change at the 3 way intersection with Camino Santa Fe. I don’t know which school Sorrento Valley belongs to, but I think it also belongs to schools in Mira Mesa. All houses in Sorrento Valley right now are $650k-$1.1M for houses ranging from 2000sq-ft to 3000sq-ft. Similarly, a 2000sq-ft just down the street on Calle Cristobal w/ a 92126 zip code is currently going for around $550-600k vs $650k+.

[an]

esmith, 92121 zip code is Sorrento Valley, not Mira Mesa. The road is also called Sorrento Valley Blvd., not Calle Cristobal. The name change at the 3 way intersection with Camino Santa Fe. I don’t know which school Sorrento Valley belongs to, but I think it also belongs to schools in Mira Mesa. All houses in Sorrento Valley right now are $650k-$1.1M for houses ranging from 2000sq-ft to 3000sq-ft. Similarly, a 2000sq-ft just down the street on Calle Cristobal w/ a 92126 zip code is currently going for around $550-600k vs $650k+.

[temeculaguy]

Asianautica, the 125x rent multiplier is absolutely still a valuable yardstick. The 3% swing in interest rates is offset by the market psychology and media. Things are different now, they are worse, appreciation is a non factor so rent nuetral is the new buzzword. Why become a landlord in MM is you have to exceed the rent multiplier while you don’t have to in another area, in this county and state or not. You don’t live there, your wife doesn’t care where the rental is, it is all math. Most in-town landlords became such because they moved up and kept their old house as a rental. Pure landlords buy where it pencils out the best. There are many rental markets where 125x can be obtained today and that is where the landlord dollars will go. If you can buy a place today for 250k that will rent out for 2k within days, and it’s still there, unsold, then 125x becomes the standard EVERYWHERE. I can almost buy rentals that are rent nuetral (meaning the rent covers the mortgage and the taxes/ins after a 20% down payment, try getting 6% with 5% down on an investment property in a declining market). Most of San Diego County doesn’t pencil out for a landlord yet which is why the areas that someone with money wouldn’t want to live are falling faster, they were more dependent on investor price support.

Venture into the areas people with money want to live and want to send their kids to school and the dynamic changes, because the deciding factors change (happy wife, enjoyable life, etc.) people are more willing to overlook the math. For how long that remains is the eternal question on these boards.

[temeculaguy]

Asianautica, the 125x rent multiplier is absolutely still a valuable yardstick. The 3% swing in interest rates is offset by the market psychology and media. Things are different now, they are worse, appreciation is a non factor so rent nuetral is the new buzzword. Why become a landlord in MM is you have to exceed the rent multiplier while you don’t have to in another area, in this county and state or not. You don’t live there, your wife doesn’t care where the rental is, it is all math. Most in-town landlords became such because they moved up and kept their old house as a rental. Pure landlords buy where it pencils out the best. There are many rental markets where 125x can be obtained today and that is where the landlord dollars will go. If you can buy a place today for 250k that will rent out for 2k within days, and it’s still there, unsold, then 125x becomes the standard EVERYWHERE. I can almost buy rentals that are rent nuetral (meaning the rent covers the mortgage and the taxes/ins after a 20% down payment, try getting 6% with 5% down on an investment property in a declining market). Most of San Diego County doesn’t pencil out for a landlord yet which is why the areas that someone with money wouldn’t want to live are falling faster, they were more dependent on investor price support.

Venture into the areas people with money want to live and want to send their kids to school and the dynamic changes, because the deciding factors change (happy wife, enjoyable life, etc.) people are more willing to overlook the math. For how long that remains is the eternal question on these boards.

[temeculaguy]

Asianautica, the 125x rent multiplier is absolutely still a valuable yardstick. The 3% swing in interest rates is offset by the market psychology and media. Things are different now, they are worse, appreciation is a non factor so rent nuetral is the new buzzword. Why become a landlord in MM is you have to exceed the rent multiplier while you don’t have to in another area, in this county and state or not. You don’t live there, your wife doesn’t care where the rental is, it is all math. Most in-town landlords became such because they moved up and kept their old house as a rental. Pure landlords buy where it pencils out the best. There are many rental markets where 125x can be obtained today and that is where the landlord dollars will go. If you can buy a place today for 250k that will rent out for 2k within days, and it’s still there, unsold, then 125x becomes the standard EVERYWHERE. I can almost buy rentals that are rent nuetral (meaning the rent covers the mortgage and the taxes/ins after a 20% down payment, try getting 6% with 5% down on an investment property in a declining market). Most of San Diego County doesn’t pencil out for a landlord yet which is why the areas that someone with money wouldn’t want to live are falling faster, they were more dependent on investor price support.

Venture into the areas people with money want to live and want to send their kids to school and the dynamic changes, because the deciding factors change (happy wife, enjoyable life, etc.) people are more willing to overlook the math. For how long that remains is the eternal question on these boards.

[temeculaguy]

Asianautica, the 125x rent multiplier is absolutely still a valuable yardstick. The 3% swing in interest rates is offset by the market psychology and media. Things are different now, they are worse, appreciation is a non factor so rent nuetral is the new buzzword. Why become a landlord in MM is you have to exceed the rent multiplier while you don’t have to in another area, in this county and state or not. You don’t live there, your wife doesn’t care where the rental is, it is all math. Most in-town landlords became such because they moved up and kept their old house as a rental. Pure landlords buy where it pencils out the best. There are many rental markets where 125x can be obtained today and that is where the landlord dollars will go. If you can buy a place today for 250k that will rent out for 2k within days, and it’s still there, unsold, then 125x becomes the standard EVERYWHERE. I can almost buy rentals that are rent nuetral (meaning the rent covers the mortgage and the taxes/ins after a 20% down payment, try getting 6% with 5% down on an investment property in a declining market). Most of San Diego County doesn’t pencil out for a landlord yet which is why the areas that someone with money wouldn’t want to live are falling faster, they were more dependent on investor price support.

Venture into the areas people with money want to live and want to send their kids to school and the dynamic changes, because the deciding factors change (happy wife, enjoyable life, etc.) people are more willing to overlook the math. For how long that remains is the eternal question on these boards.

[temeculaguy]

Asianautica, the 125x rent multiplier is absolutely still a valuable yardstick. The 3% swing in interest rates is offset by the market psychology and media. Things are different now, they are worse, appreciation is a non factor so rent nuetral is the new buzzword. Why become a landlord in MM is you have to exceed the rent multiplier while you don’t have to in another area, in this county and state or not. You don’t live there, your wife doesn’t care where the rental is, it is all math. Most in-town landlords became such because they moved up and kept their old house as a rental. Pure landlords buy where it pencils out the best. There are many rental markets where 125x can be obtained today and that is where the landlord dollars will go. If you can buy a place today for 250k that will rent out for 2k within days, and it’s still there, unsold, then 125x becomes the standard EVERYWHERE. I can almost buy rentals that are rent nuetral (meaning the rent covers the mortgage and the taxes/ins after a 20% down payment, try getting 6% with 5% down on an investment property in a declining market). Most of San Diego County doesn’t pencil out for a landlord yet which is why the areas that someone with money wouldn’t want to live are falling faster, they were more dependent on investor price support.

Venture into the areas people with money want to live and want to send their kids to school and the dynamic changes, because the deciding factors change (happy wife, enjoyable life, etc.) people are more willing to overlook the math. For how long that remains is the eternal question on these boards.

[abell]

One funny think about the park pictures, is not only did they use pictures from the closest park (Lopez Ridge Park – near Camino Santa Fe), there are also pictures of the next closest park (the one on the north end of Camino Ruiz). They seemed to go to great lengths to add pictures to the MLS listing but to avoid showing the actual property for sale.

[abell]

One funny think about the park pictures, is not only did they use pictures from the closest park (Lopez Ridge Park – near Camino Santa Fe), there are also pictures of the next closest park (the one on the north end of Camino Ruiz). They seemed to go to great lengths to add pictures to the MLS listing but to avoid showing the actual property for sale.

[abell]

One funny think about the park pictures, is not only did they use pictures from the closest park (Lopez Ridge Park – near Camino Santa Fe), there are also pictures of the next closest park (the one on the north end of Camino Ruiz). They seemed to go to great lengths to add pictures to the MLS listing but to avoid showing the actual property for sale.

[abell]

One funny think about the park pictures, is not only did they use pictures from the closest park (Lopez Ridge Park – near Camino Santa Fe), there are also pictures of the next closest park (the one on the north end of Camino Ruiz). They seemed to go to great lengths to add pictures to the MLS listing but to avoid showing the actual property for sale.

[Author]

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