Mira Mesa prices

[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.

[feraina]

[quote=esmith]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.[/quote]

Since I work at UCSD I haven’t even looked into Rancho Bernardo or Rancho Penasquito — b/t the gas price and commute time, I decided it wasn’t worth it. I’m sure the students would consider it even less: most don’t have cars, the buses aren’t free that far, and they prefer to live close to other students.

Maybe rental prices are seasonable, but most of the MM rentals change hands in the summer and ask for 1-yr leases, as do most rental markets near universities.

Rentals are even more expensive in UTC (relative to their buying prices), we found a 2BR condo for just under $1800 and we count ourselves lucky. I’m really just amazed at the volume of units that appear on Craigslist daily (hard to estimate how many are new, say 30), and somehow or other they all get rented.

I wouldn’t be surprised if investors are also going after the UTC/La Jolla condo market. Certainly a lot of the more interesting listings I looked at went pending recently.

[feraina]

[quote=esmith]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.[/quote]

Since I work at UCSD I haven’t even looked into Rancho Bernardo or Rancho Penasquito — b/t the gas price and commute time, I decided it wasn’t worth it. I’m sure the students would consider it even less: most don’t have cars, the buses aren’t free that far, and they prefer to live close to other students.

Maybe rental prices are seasonable, but most of the MM rentals change hands in the summer and ask for 1-yr leases, as do most rental markets near universities.

Rentals are even more expensive in UTC (relative to their buying prices), we found a 2BR condo for just under $1800 and we count ourselves lucky. I’m really just amazed at the volume of units that appear on Craigslist daily (hard to estimate how many are new, say 30), and somehow or other they all get rented.

I wouldn’t be surprised if investors are also going after the UTC/La Jolla condo market. Certainly a lot of the more interesting listings I looked at went pending recently.

[feraina]

[quote=esmith]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.[/quote]

Since I work at UCSD I haven’t even looked into Rancho Bernardo or Rancho Penasquito — b/t the gas price and commute time, I decided it wasn’t worth it. I’m sure the students would consider it even less: most don’t have cars, the buses aren’t free that far, and they prefer to live close to other students.

Maybe rental prices are seasonable, but most of the MM rentals change hands in the summer and ask for 1-yr leases, as do most rental markets near universities.

Rentals are even more expensive in UTC (relative to their buying prices), we found a 2BR condo for just under $1800 and we count ourselves lucky. I’m really just amazed at the volume of units that appear on Craigslist daily (hard to estimate how many are new, say 30), and somehow or other they all get rented.

I wouldn’t be surprised if investors are also going after the UTC/La Jolla condo market. Certainly a lot of the more interesting listings I looked at went pending recently.

[feraina]

[quote=esmith]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.[/quote]

Since I work at UCSD I haven’t even looked into Rancho Bernardo or Rancho Penasquito — b/t the gas price and commute time, I decided it wasn’t worth it. I’m sure the students would consider it even less: most don’t have cars, the buses aren’t free that far, and they prefer to live close to other students.

Maybe rental prices are seasonable, but most of the MM rentals change hands in the summer and ask for 1-yr leases, as do most rental markets near universities.

Rentals are even more expensive in UTC (relative to their buying prices), we found a 2BR condo for just under $1800 and we count ourselves lucky. I’m really just amazed at the volume of units that appear on Craigslist daily (hard to estimate how many are new, say 30), and somehow or other they all get rented.

I wouldn’t be surprised if investors are also going after the UTC/La Jolla condo market. Certainly a lot of the more interesting listings I looked at went pending recently.

[feraina]

[quote=esmith]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.[/quote]

Since I work at UCSD I haven’t even looked into Rancho Bernardo or Rancho Penasquito — b/t the gas price and commute time, I decided it wasn’t worth it. I’m sure the students would consider it even less: most don’t have cars, the buses aren’t free that far, and they prefer to live close to other students.

Maybe rental prices are seasonable, but most of the MM rentals change hands in the summer and ask for 1-yr leases, as do most rental markets near universities.

Rentals are even more expensive in UTC (relative to their buying prices), we found a 2BR condo for just under $1800 and we count ourselves lucky. I’m really just amazed at the volume of units that appear on Craigslist daily (hard to estimate how many are new, say 30), and somehow or other they all get rented.

I wouldn’t be surprised if investors are also going after the UTC/La Jolla condo market. Certainly a lot of the more interesting listings I looked at went pending recently.

[Eugene]

As I mentioned before, I’m renting a 1700 sf 4br with big backyard in PQ for $2100/month. Why would I want to pay $2000 for a 1100-1400 sf 3br house in MM without a backyard and with worse schools?

Most prices you see on Craigslist are wishing prices, no one in their right mind is going to pay that much.

It would take me 15 minutes to drive to UCSD (56 to 5). The commute from Mira Mesa by car would actually be _longer_ (I’d have to take city streets, it could take 10 minutes just to cross Golden Triangle). Much of MM isn’t served by buses. Neither MM nor PQ is a very good option for UCSD students, in my opinion.

we found a 2BR condo for just under $1800 and we count ourselves lucky.

Again, right now on Craigslist there are 25 listings of 2BR condos in UTC below $1700. For $1950, you can even get a 3BR:

http://sandiego.craigslist.org/csd/apa/745926653.html

[Eugene]

As I mentioned before, I’m renting a 1700 sf 4br with big backyard in PQ for $2100/month. Why would I want to pay $2000 for a 1100-1400 sf 3br house in MM without a backyard and with worse schools?

Most prices you see on Craigslist are wishing prices, no one in their right mind is going to pay that much.

It would take me 15 minutes to drive to UCSD (56 to 5). The commute from Mira Mesa by car would actually be _longer_ (I’d have to take city streets, it could take 10 minutes just to cross Golden Triangle). Much of MM isn’t served by buses. Neither MM nor PQ is a very good option for UCSD students, in my opinion.

we found a 2BR condo for just under $1800 and we count ourselves lucky.

Again, right now on Craigslist there are 25 listings of 2BR condos in UTC below $1700. For $1950, you can even get a 3BR:

http://sandiego.craigslist.org/csd/apa/745926653.html

[Eugene]

As I mentioned before, I’m renting a 1700 sf 4br with big backyard in PQ for $2100/month. Why would I want to pay $2000 for a 1100-1400 sf 3br house in MM without a backyard and with worse schools?

Most prices you see on Craigslist are wishing prices, no one in their right mind is going to pay that much.

It would take me 15 minutes to drive to UCSD (56 to 5). The commute from Mira Mesa by car would actually be _longer_ (I’d have to take city streets, it could take 10 minutes just to cross Golden Triangle). Much of MM isn’t served by buses. Neither MM nor PQ is a very good option for UCSD students, in my opinion.

we found a 2BR condo for just under $1800 and we count ourselves lucky.

Again, right now on Craigslist there are 25 listings of 2BR condos in UTC below $1700. For $1950, you can even get a 3BR:

http://sandiego.craigslist.org/csd/apa/745926653.html

[Eugene]

As I mentioned before, I’m renting a 1700 sf 4br with big backyard in PQ for $2100/month. Why would I want to pay $2000 for a 1100-1400 sf 3br house in MM without a backyard and with worse schools?

Most prices you see on Craigslist are wishing prices, no one in their right mind is going to pay that much.

It would take me 15 minutes to drive to UCSD (56 to 5). The commute from Mira Mesa by car would actually be _longer_ (I’d have to take city streets, it could take 10 minutes just to cross Golden Triangle). Much of MM isn’t served by buses. Neither MM nor PQ is a very good option for UCSD students, in my opinion.

we found a 2BR condo for just under $1800 and we count ourselves lucky.

Again, right now on Craigslist there are 25 listings of 2BR condos in UTC below $1700. For $1950, you can even get a 3BR:

http://sandiego.craigslist.org/csd/apa/745926653.html

[Eugene]

As I mentioned before, I’m renting a 1700 sf 4br with big backyard in PQ for $2100/month. Why would I want to pay $2000 for a 1100-1400 sf 3br house in MM without a backyard and with worse schools?

Most prices you see on Craigslist are wishing prices, no one in their right mind is going to pay that much.

It would take me 15 minutes to drive to UCSD (56 to 5). The commute from Mira Mesa by car would actually be _longer_ (I’d have to take city streets, it could take 10 minutes just to cross Golden Triangle). Much of MM isn’t served by buses. Neither MM nor PQ is a very good option for UCSD students, in my opinion.

we found a 2BR condo for just under $1800 and we count ourselves lucky.

Again, right now on Craigslist there are 25 listings of 2BR condos in UTC below $1700. For $1950, you can even get a 3BR:

http://sandiego.craigslist.org/csd/apa/745926653.html

[Bugs]

If mortgage interest rates increase over the next couple years I could see the smaller/older 3/2 MM homes dropping into the mid-$200s. I wouldn’t think they’d get down to $225k though.

Mira Mesa has a very central location for a lot of workers. The home prices there really should be higher than for some of the North County communities. I’d say the same thing for the South Bay communities – they’re a lot closer to decent employment.

I think there’s some room for rents to drop, too. The extra money people are spending on gas and groceries has to come from somewhere, and looking for the cheaper rental is the easiest way to do that. There’s also the employment situation. All those refugees from the RE-related businesses will replace their jobs with lower paying jobs, thus reducing the amount they have for rents.

It’s just going to take some time. Rents down by 10% + mortgage interest rates up by 2.5% or 3% and a $250k MM 3/2 is a possibility.

[Bugs]

If mortgage interest rates increase over the next couple years I could see the smaller/older 3/2 MM homes dropping into the mid-$200s. I wouldn’t think they’d get down to $225k though.

Mira Mesa has a very central location for a lot of workers. The home prices there really should be higher than for some of the North County communities. I’d say the same thing for the South Bay communities – they’re a lot closer to decent employment.

I think there’s some room for rents to drop, too. The extra money people are spending on gas and groceries has to come from somewhere, and looking for the cheaper rental is the easiest way to do that. There’s also the employment situation. All those refugees from the RE-related businesses will replace their jobs with lower paying jobs, thus reducing the amount they have for rents.

It’s just going to take some time. Rents down by 10% + mortgage interest rates up by 2.5% or 3% and a $250k MM 3/2 is a possibility.

[Bugs]

If mortgage interest rates increase over the next couple years I could see the smaller/older 3/2 MM homes dropping into the mid-$200s. I wouldn’t think they’d get down to $225k though.

Mira Mesa has a very central location for a lot of workers. The home prices there really should be higher than for some of the North County communities. I’d say the same thing for the South Bay communities – they’re a lot closer to decent employment.

I think there’s some room for rents to drop, too. The extra money people are spending on gas and groceries has to come from somewhere, and looking for the cheaper rental is the easiest way to do that. There’s also the employment situation. All those refugees from the RE-related businesses will replace their jobs with lower paying jobs, thus reducing the amount they have for rents.

It’s just going to take some time. Rents down by 10% + mortgage interest rates up by 2.5% or 3% and a $250k MM 3/2 is a possibility.

[Bugs]

If mortgage interest rates increase over the next couple years I could see the smaller/older 3/2 MM homes dropping into the mid-$200s. I wouldn’t think they’d get down to $225k though.

Mira Mesa has a very central location for a lot of workers. The home prices there really should be higher than for some of the North County communities. I’d say the same thing for the South Bay communities – they’re a lot closer to decent employment.

I think there’s some room for rents to drop, too. The extra money people are spending on gas and groceries has to come from somewhere, and looking for the cheaper rental is the easiest way to do that. There’s also the employment situation. All those refugees from the RE-related businesses will replace their jobs with lower paying jobs, thus reducing the amount they have for rents.

It’s just going to take some time. Rents down by 10% + mortgage interest rates up by 2.5% or 3% and a $250k MM 3/2 is a possibility.

[Author]

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