Mira Mesa prices

[Eugene]

I’m only interested in NW MM, which is maybe the most expensive part. I’m sad to report that after a month, I didn’t find a single 3BR house (with wooden floor, which is really important to us) in NW MM for under $2000. (Instead we’ll rent a 2BR condo in La Jolla.)

Right now on Craigslist there are 23 listings of 3BR and 4BR houses and condos in Rancho Bernardo, and 12 listings in Rancho Penasquitos, under $2000. I think everyone will agree that MM is cheaper than both RB and RP.

Just because someone wants to get 2200 or 2300 for their 3br rental in MM, does not mean that the market will bear that price.

Also all these “investors” snapping up 300-350k properties in MM will soon start bringing their houses on the market and that will have a serious impact on rents.

[DWCAP]

and just a side note, summer is always the busy time for MM rentals. The college crowd is to blame for that. They want to move in the summer when they are off, not during midterms. When I was looking in 2006, I got run out during the summer. LL’s were calling me in the fall. (Management agency called me about our approval on a house we didnt even know we had applied for)

[DWCAP]

and just a side note, summer is always the busy time for MM rentals. The college crowd is to blame for that. They want to move in the summer when they are off, not during midterms. When I was looking in 2006, I got run out during the summer. LL’s were calling me in the fall. (Management agency called me about our approval on a house we didnt even know we had applied for)

[DWCAP]

and just a side note, summer is always the busy time for MM rentals. The college crowd is to blame for that. They want to move in the summer when they are off, not during midterms. When I was looking in 2006, I got run out during the summer. LL’s were calling me in the fall. (Management agency called me about our approval on a house we didnt even know we had applied for)

[DWCAP]

and just a side note, summer is always the busy time for MM rentals. The college crowd is to blame for that. They want to move in the summer when they are off, not during midterms. When I was looking in 2006, I got run out during the summer. LL’s were calling me in the fall. (Management agency called me about our approval on a house we didnt even know we had applied for)

[DWCAP]

and just a side note, summer is always the busy time for MM rentals. The college crowd is to blame for that. They want to move in the summer when they are off, not during midterms. When I was looking in 2006, I got run out during the summer. LL’s were calling me in the fall. (Management agency called me about our approval on a house we didnt even know we had applied for)

[an]

DWCAP, rental rise in the last few months took me by surprise as well. If you have a nicely remodeled 3/2 home in MM, you might be able to get 1900-2000 for it easily, considering the rental stock right now and how fast it flying off the market. I think gas price might have something to do with it as well. You’re right, MM is the only game in twon right now.

esmith, I’ve looked up the rental of PQ on craigslist and those that are under $2k/month are either condos or are small old houses. Most of those are repeat of the same one on 9930 Caminito Bolsa, San Diego, CA 92129 as well, which is right next to low income housing as well. Not all PQ are nice, even though they’re in PUSD.

[quote=noone]
I think your math is a bit off. I think you are forgetting that you have to pay the property taxes first. Then the deduction lowers the annual income that you have to pay taxes on. It’s not a tax credit.

You are correct that $225k at 6% with 0% down P&I will be about $1,350 (can you even get 6% with 0% down these days?). Adding taxes an insurance gets you up to about $1,600 a month. If you’re paying 1% in property taxes on $225k that’s $2,250 a year. Assuming the 30% tax bracket, you will be reducing your taxes by about $675 a year or $56 a month. So even including the tax deduction you’re monthly cost is over $1,500 not $1,200. For an older & smaller 3/2 in Mira Mesa that is probably the going rent.[/quote]
My number are rough estimate, but I use the same assumption for today’s number as 1996 numbers. So, the home ownership premium stays the same.

No you can’t get 6% with 0% down, but I’m trying to make as fair of a comparison as I can. You forget that you will get a tax deduction on the interest as well. I think the most fair comparison between rent vs buy would be rent vs Interest + tax + insurance – tax deduction. You shouldn’t count the principal payment because that’s not money you’re throwing away.

Right now, I see all the 1100-1400 sq-ft 3/2 houses in MM asking for $1800-2000 in rent. So, lets run the # again, shall we?

$225k with 0% down @ 6% will run you ~$1100/month in interest. Tax @ 1.1% is $206/month. Assume insurance is ~$200/month. That’s $1500/month before deduction. Assume 25% fed tax and 9% state tax, you’re looking @ 34% tax saving on $1300/month which comes out to be ~$490/month. So after tax deduction, you’re looking ~$1000/month. This house can easily find renters @1700/month, considering apartments in this area is going for $1500/month.

[an]

DWCAP, rental rise in the last few months took me by surprise as well. If you have a nicely remodeled 3/2 home in MM, you might be able to get 1900-2000 for it easily, considering the rental stock right now and how fast it flying off the market. I think gas price might have something to do with it as well. You’re right, MM is the only game in twon right now.

esmith, I’ve looked up the rental of PQ on craigslist and those that are under $2k/month are either condos or are small old houses. Most of those are repeat of the same one on 9930 Caminito Bolsa, San Diego, CA 92129 as well, which is right next to low income housing as well. Not all PQ are nice, even though they’re in PUSD.

[quote=noone]
I think your math is a bit off. I think you are forgetting that you have to pay the property taxes first. Then the deduction lowers the annual income that you have to pay taxes on. It’s not a tax credit.

You are correct that $225k at 6% with 0% down P&I will be about $1,350 (can you even get 6% with 0% down these days?). Adding taxes an insurance gets you up to about $1,600 a month. If you’re paying 1% in property taxes on $225k that’s $2,250 a year. Assuming the 30% tax bracket, you will be reducing your taxes by about $675 a year or $56 a month. So even including the tax deduction you’re monthly cost is over $1,500 not $1,200. For an older & smaller 3/2 in Mira Mesa that is probably the going rent.[/quote]
My number are rough estimate, but I use the same assumption for today’s number as 1996 numbers. So, the home ownership premium stays the same.

No you can’t get 6% with 0% down, but I’m trying to make as fair of a comparison as I can. You forget that you will get a tax deduction on the interest as well. I think the most fair comparison between rent vs buy would be rent vs Interest + tax + insurance – tax deduction. You shouldn’t count the principal payment because that’s not money you’re throwing away.

Right now, I see all the 1100-1400 sq-ft 3/2 houses in MM asking for $1800-2000 in rent. So, lets run the # again, shall we?

$225k with 0% down @ 6% will run you ~$1100/month in interest. Tax @ 1.1% is $206/month. Assume insurance is ~$200/month. That’s $1500/month before deduction. Assume 25% fed tax and 9% state tax, you’re looking @ 34% tax saving on $1300/month which comes out to be ~$490/month. So after tax deduction, you’re looking ~$1000/month. This house can easily find renters @1700/month, considering apartments in this area is going for $1500/month.

[an]

DWCAP, rental rise in the last few months took me by surprise as well. If you have a nicely remodeled 3/2 home in MM, you might be able to get 1900-2000 for it easily, considering the rental stock right now and how fast it flying off the market. I think gas price might have something to do with it as well. You’re right, MM is the only game in twon right now.

esmith, I’ve looked up the rental of PQ on craigslist and those that are under $2k/month are either condos or are small old houses. Most of those are repeat of the same one on 9930 Caminito Bolsa, San Diego, CA 92129 as well, which is right next to low income housing as well. Not all PQ are nice, even though they’re in PUSD.

[quote=noone]
I think your math is a bit off. I think you are forgetting that you have to pay the property taxes first. Then the deduction lowers the annual income that you have to pay taxes on. It’s not a tax credit.

You are correct that $225k at 6% with 0% down P&I will be about $1,350 (can you even get 6% with 0% down these days?). Adding taxes an insurance gets you up to about $1,600 a month. If you’re paying 1% in property taxes on $225k that’s $2,250 a year. Assuming the 30% tax bracket, you will be reducing your taxes by about $675 a year or $56 a month. So even including the tax deduction you’re monthly cost is over $1,500 not $1,200. For an older & smaller 3/2 in Mira Mesa that is probably the going rent.[/quote]
My number are rough estimate, but I use the same assumption for today’s number as 1996 numbers. So, the home ownership premium stays the same.

No you can’t get 6% with 0% down, but I’m trying to make as fair of a comparison as I can. You forget that you will get a tax deduction on the interest as well. I think the most fair comparison between rent vs buy would be rent vs Interest + tax + insurance – tax deduction. You shouldn’t count the principal payment because that’s not money you’re throwing away.

Right now, I see all the 1100-1400 sq-ft 3/2 houses in MM asking for $1800-2000 in rent. So, lets run the # again, shall we?

$225k with 0% down @ 6% will run you ~$1100/month in interest. Tax @ 1.1% is $206/month. Assume insurance is ~$200/month. That’s $1500/month before deduction. Assume 25% fed tax and 9% state tax, you’re looking @ 34% tax saving on $1300/month which comes out to be ~$490/month. So after tax deduction, you’re looking ~$1000/month. This house can easily find renters @1700/month, considering apartments in this area is going for $1500/month.

[an]

DWCAP, rental rise in the last few months took me by surprise as well. If you have a nicely remodeled 3/2 home in MM, you might be able to get 1900-2000 for it easily, considering the rental stock right now and how fast it flying off the market. I think gas price might have something to do with it as well. You’re right, MM is the only game in twon right now.

esmith, I’ve looked up the rental of PQ on craigslist and those that are under $2k/month are either condos or are small old houses. Most of those are repeat of the same one on 9930 Caminito Bolsa, San Diego, CA 92129 as well, which is right next to low income housing as well. Not all PQ are nice, even though they’re in PUSD.

[quote=noone]
I think your math is a bit off. I think you are forgetting that you have to pay the property taxes first. Then the deduction lowers the annual income that you have to pay taxes on. It’s not a tax credit.

You are correct that $225k at 6% with 0% down P&I will be about $1,350 (can you even get 6% with 0% down these days?). Adding taxes an insurance gets you up to about $1,600 a month. If you’re paying 1% in property taxes on $225k that’s $2,250 a year. Assuming the 30% tax bracket, you will be reducing your taxes by about $675 a year or $56 a month. So even including the tax deduction you’re monthly cost is over $1,500 not $1,200. For an older & smaller 3/2 in Mira Mesa that is probably the going rent.[/quote]
My number are rough estimate, but I use the same assumption for today’s number as 1996 numbers. So, the home ownership premium stays the same.

No you can’t get 6% with 0% down, but I’m trying to make as fair of a comparison as I can. You forget that you will get a tax deduction on the interest as well. I think the most fair comparison between rent vs buy would be rent vs Interest + tax + insurance – tax deduction. You shouldn’t count the principal payment because that’s not money you’re throwing away.

Right now, I see all the 1100-1400 sq-ft 3/2 houses in MM asking for $1800-2000 in rent. So, lets run the # again, shall we?

$225k with 0% down @ 6% will run you ~$1100/month in interest. Tax @ 1.1% is $206/month. Assume insurance is ~$200/month. That’s $1500/month before deduction. Assume 25% fed tax and 9% state tax, you’re looking @ 34% tax saving on $1300/month which comes out to be ~$490/month. So after tax deduction, you’re looking ~$1000/month. This house can easily find renters @1700/month, considering apartments in this area is going for $1500/month.

[an]

DWCAP, rental rise in the last few months took me by surprise as well. If you have a nicely remodeled 3/2 home in MM, you might be able to get 1900-2000 for it easily, considering the rental stock right now and how fast it flying off the market. I think gas price might have something to do with it as well. You’re right, MM is the only game in twon right now.

esmith, I’ve looked up the rental of PQ on craigslist and those that are under $2k/month are either condos or are small old houses. Most of those are repeat of the same one on 9930 Caminito Bolsa, San Diego, CA 92129 as well, which is right next to low income housing as well. Not all PQ are nice, even though they’re in PUSD.

[quote=noone]
I think your math is a bit off. I think you are forgetting that you have to pay the property taxes first. Then the deduction lowers the annual income that you have to pay taxes on. It’s not a tax credit.

You are correct that $225k at 6% with 0% down P&I will be about $1,350 (can you even get 6% with 0% down these days?). Adding taxes an insurance gets you up to about $1,600 a month. If you’re paying 1% in property taxes on $225k that’s $2,250 a year. Assuming the 30% tax bracket, you will be reducing your taxes by about $675 a year or $56 a month. So even including the tax deduction you’re monthly cost is over $1,500 not $1,200. For an older & smaller 3/2 in Mira Mesa that is probably the going rent.[/quote]
My number are rough estimate, but I use the same assumption for today’s number as 1996 numbers. So, the home ownership premium stays the same.

No you can’t get 6% with 0% down, but I’m trying to make as fair of a comparison as I can. You forget that you will get a tax deduction on the interest as well. I think the most fair comparison between rent vs buy would be rent vs Interest + tax + insurance – tax deduction. You shouldn’t count the principal payment because that’s not money you’re throwing away.

Right now, I see all the 1100-1400 sq-ft 3/2 houses in MM asking for $1800-2000 in rent. So, lets run the # again, shall we?

$225k with 0% down @ 6% will run you ~$1100/month in interest. Tax @ 1.1% is $206/month. Assume insurance is ~$200/month. That’s $1500/month before deduction. Assume 25% fed tax and 9% state tax, you’re looking @ 34% tax saving on $1300/month which comes out to be ~$490/month. So after tax deduction, you’re looking ~$1000/month. This house can easily find renters @1700/month, considering apartments in this area is going for $1500/month.

[EconProf]

You guys are way underestimating the true costs of being a landlord, and are thus overestimating potential profits.
First, figure one month a year of vacancy, so take 8 1/2% off your revenues. It takes time to clean, fixup, then advertise for & find a tenant, then perhaps they cannot move in for a while once you’ve settled on one, etc. It really adds up.
What is your budget for major repairs, as broken down into a monthly figure? New roof soon? Water heater? Furnace? Painting all the exterior siding and trim? Perhaps new windows? The Mira Mesa houses are largely tired old places, at least the likely rental candidates. What about lawn maintenance and weeding? Figure $50 – 100 a month depending on size. BTW, tenants can’t/won’t do it, whatever they claim. There is also the value of your own time, gas, late-night calls for toilet stoppage, etc. And the fun really starts when you have to do an eviction.
I’ve rented out houses and apartments for many years, and the costs invariably exceed your expectations and the rent revenues per year always underperform. Only the appreciation in value has made it worthwhile.

[EconProf]

You guys are way underestimating the true costs of being a landlord, and are thus overestimating potential profits.
First, figure one month a year of vacancy, so take 8 1/2% off your revenues. It takes time to clean, fixup, then advertise for & find a tenant, then perhaps they cannot move in for a while once you’ve settled on one, etc. It really adds up.
What is your budget for major repairs, as broken down into a monthly figure? New roof soon? Water heater? Furnace? Painting all the exterior siding and trim? Perhaps new windows? The Mira Mesa houses are largely tired old places, at least the likely rental candidates. What about lawn maintenance and weeding? Figure $50 – 100 a month depending on size. BTW, tenants can’t/won’t do it, whatever they claim. There is also the value of your own time, gas, late-night calls for toilet stoppage, etc. And the fun really starts when you have to do an eviction.
I’ve rented out houses and apartments for many years, and the costs invariably exceed your expectations and the rent revenues per year always underperform. Only the appreciation in value has made it worthwhile.

[EconProf]

You guys are way underestimating the true costs of being a landlord, and are thus overestimating potential profits.
First, figure one month a year of vacancy, so take 8 1/2% off your revenues. It takes time to clean, fixup, then advertise for & find a tenant, then perhaps they cannot move in for a while once you’ve settled on one, etc. It really adds up.
What is your budget for major repairs, as broken down into a monthly figure? New roof soon? Water heater? Furnace? Painting all the exterior siding and trim? Perhaps new windows? The Mira Mesa houses are largely tired old places, at least the likely rental candidates. What about lawn maintenance and weeding? Figure $50 – 100 a month depending on size. BTW, tenants can’t/won’t do it, whatever they claim. There is also the value of your own time, gas, late-night calls for toilet stoppage, etc. And the fun really starts when you have to do an eviction.
I’ve rented out houses and apartments for many years, and the costs invariably exceed your expectations and the rent revenues per year always underperform. Only the appreciation in value has made it worthwhile.

[EconProf]

You guys are way underestimating the true costs of being a landlord, and are thus overestimating potential profits.
First, figure one month a year of vacancy, so take 8 1/2% off your revenues. It takes time to clean, fixup, then advertise for & find a tenant, then perhaps they cannot move in for a while once you’ve settled on one, etc. It really adds up.
What is your budget for major repairs, as broken down into a monthly figure? New roof soon? Water heater? Furnace? Painting all the exterior siding and trim? Perhaps new windows? The Mira Mesa houses are largely tired old places, at least the likely rental candidates. What about lawn maintenance and weeding? Figure $50 – 100 a month depending on size. BTW, tenants can’t/won’t do it, whatever they claim. There is also the value of your own time, gas, late-night calls for toilet stoppage, etc. And the fun really starts when you have to do an eviction.
I’ve rented out houses and apartments for many years, and the costs invariably exceed your expectations and the rent revenues per year always underperform. Only the appreciation in value has made it worthwhile.

[Author]

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