North Park Loss ($75k)

[blahblahblah]

A house like this would rent for around $2500.

Really? It’s only 1200sf, that works out to over $2/sf. I pay $1.25/sf in a better neighborhood closer to downtown, just under $2500/mo. Nicer, bigger place too. Maybe I’m just lucky…

[GoUSC]

I rent a 2000sf house in Bay Park for $2300 and feel like I got a great deal. I don’t see many homes in GOOD CONDITION on Craigslist renting for less than $2500 regardless of size in a central location like North Park.

[GoUSC]

I rent a 2000sf house in Bay Park for $2300 and feel like I got a great deal. I don’t see many homes in GOOD CONDITION on Craigslist renting for less than $2500 regardless of size in a central location like North Park.

[4plexowner]

I hadn’t checked rents in that area lately so I had a peek – from the July 1st, 2007 Union Tribune rental section

Normal Hts
> 3/1 house $1800
> 2/2 townhouse $1450

North Park
> 2/2 house + studio, W/D hkup, fplc $1700
> 3/1 house $1700
> 3/1 Craftsman house, W/D, landscaped, gardener $1700

Talmadge
> 3/2 house $1675

University Hts
> 3/2, 1200 SQFT, gar, cat ok $1550

~

As a conservative investor, I stick by my original back-of-the-envelope number – the property will rent for $1500/month – maybe we could get $1700/month but our turnover might be high at $1700 – better to base a ‘buy or don’t buy’ decision on conservative numbers and have a pleasant surprise than to use pie-in-the-sky numbers and lose our asses

[4plexowner]

I hadn’t checked rents in that area lately so I had a peek – from the July 1st, 2007 Union Tribune rental section

Normal Hts
> 3/1 house $1800
> 2/2 townhouse $1450

North Park
> 2/2 house + studio, W/D hkup, fplc $1700
> 3/1 house $1700
> 3/1 Craftsman house, W/D, landscaped, gardener $1700

Talmadge
> 3/2 house $1675

University Hts
> 3/2, 1200 SQFT, gar, cat ok $1550

~

As a conservative investor, I stick by my original back-of-the-envelope number – the property will rent for $1500/month – maybe we could get $1700/month but our turnover might be high at $1700 – better to base a ‘buy or don’t buy’ decision on conservative numbers and have a pleasant surprise than to use pie-in-the-sky numbers and lose our asses

[no_such_reality]

Yeah, but how are those rents going to hold up when there are 6000 empty brand new condos in downtown?

I remember buying my place last down cycle, I moved from renting a unit to owning a unit. Rent was $1450, owning with 10% down was $1150.

[no_such_reality]

Yeah, but how are those rents going to hold up when there are 6000 empty brand new condos in downtown?

I remember buying my place last down cycle, I moved from renting a unit to owning a unit. Rent was $1450, owning with 10% down was $1150.

[kewp]

Sorry guys things are definately going to devalue but not to the extent where everyone can afford a house. This is still San Diego and if homes get to pricing like $144k for this, I’ll be buying them by the boatload.

Well, things are different this time. There is a glut of inventory from overbuilding and RE/retail dominate the employment numbers. A housing crash plus recession is going to dry up whatever pool of potential renters are left.

Assuming the market really starts tanking hard I can see rentals becoming a hotter commodity, as more folks would consider moving to SD, renting for a year then buying at the bottom.

[kewp]

Sorry guys things are definately going to devalue but not to the extent where everyone can afford a house. This is still San Diego and if homes get to pricing like $144k for this, I’ll be buying them by the boatload.

Well, things are different this time. There is a glut of inventory from overbuilding and RE/retail dominate the employment numbers. A housing crash plus recession is going to dry up whatever pool of potential renters are left.

Assuming the market really starts tanking hard I can see rentals becoming a hotter commodity, as more folks would consider moving to SD, renting for a year then buying at the bottom.

[poorgradstudent]

Regardless of gentrification, neighborhood improvement, and potential upgrades, how in the world did the buyer think in November of ’05 that paying more than 4x the 1999 price was a good idea? Assets never increase in value that quickly.

My mind is officially boggled.

[poorgradstudent]

Regardless of gentrification, neighborhood improvement, and potential upgrades, how in the world did the buyer think in November of ’05 that paying more than 4x the 1999 price was a good idea? Assets never increase in value that quickly.

My mind is officially boggled.

[drunkle]

those rent numbers seem wrong. university heights is far better than np; less apts, nicer people, neat local shops.

i rent a 2/1 garage/driveway for 965. been here for awhile, early 2000’s. my neighbor has been there longer than i and still only pays some 700/mo. when my friend and i first moved into the house, rent was 800 and i thought that was high.

rents shot up in the past 5 years for retarded reasons. there’s no gentrification here, it’s still the ghetto. you want a “party”? crack whores and tweek houses abound. dont go walking at night if you’re bone white or female.

i would venture that the majority of people in np have been here a long time. many permanent renters, some older folks. the new people, the people who think it’s cute or centrally located may be paying such high rent, but they dont stay. they get disillusioned quick enough.

btw, golden hill is closer to dt, about as central as np and yet… would you buy there for 400k?

[drunkle]

those rent numbers seem wrong. university heights is far better than np; less apts, nicer people, neat local shops.

i rent a 2/1 garage/driveway for 965. been here for awhile, early 2000’s. my neighbor has been there longer than i and still only pays some 700/mo. when my friend and i first moved into the house, rent was 800 and i thought that was high.

rents shot up in the past 5 years for retarded reasons. there’s no gentrification here, it’s still the ghetto. you want a “party”? crack whores and tweek houses abound. dont go walking at night if you’re bone white or female.

i would venture that the majority of people in np have been here a long time. many permanent renters, some older folks. the new people, the people who think it’s cute or centrally located may be paying such high rent, but they dont stay. they get disillusioned quick enough.

btw, golden hill is closer to dt, about as central as np and yet… would you buy there for 400k?

[Ricechex]

drunkle-
I agree that the majority of people in np have been here a long time. I have lived here for the past 17 years in various places (minus 2 1/2 years in Hillcrest),and I also have many friends in the neighborhood.

Most people either own homes or rent homes they have been in for awhile, and many don’t even get advertised. Case in point….I live in a 2 bed/1 ba house with a 1 bed/1ba house on same property, next door, not behind my house. I have been here since Dec 99, and when the house next to me came up for rent, some friends of mine got it and have been here since early 2001. It is who ya know….the people that are paying the high rents are either divorcing, new to the neighborhood, or have been given the boot when their long term rental went up for sale.

Some other friends of mine were renters on Pershing Ave and bought the house for $225K over 10 years ago. The prior owner took a $50K loss at that time.

Approximatey 3 years ago, they did some condo conversions across the street from me. That was cool, because it moved out the family with 16 people in a 2 bed townhouse. However, the new owners got screwed, the place is constantly having plumbing and electrical issus, and a unit is always for sale (out of 5 units) and the price keeps going down.

EDIT: I think the house posted could rent for about $1900–$2500 is pushing it. $2500 will get you Pershing, or Granada street, something near Morley Field, with more square footage.

[Ricechex]

drunkle-
I agree that the majority of people in np have been here a long time. I have lived here for the past 17 years in various places (minus 2 1/2 years in Hillcrest),and I also have many friends in the neighborhood.

Most people either own homes or rent homes they have been in for awhile, and many don’t even get advertised. Case in point….I live in a 2 bed/1 ba house with a 1 bed/1ba house on same property, next door, not behind my house. I have been here since Dec 99, and when the house next to me came up for rent, some friends of mine got it and have been here since early 2001. It is who ya know….the people that are paying the high rents are either divorcing, new to the neighborhood, or have been given the boot when their long term rental went up for sale.

Some other friends of mine were renters on Pershing Ave and bought the house for $225K over 10 years ago. The prior owner took a $50K loss at that time.

Approximatey 3 years ago, they did some condo conversions across the street from me. That was cool, because it moved out the family with 16 people in a 2 bed townhouse. However, the new owners got screwed, the place is constantly having plumbing and electrical issus, and a unit is always for sale (out of 5 units) and the price keeps going down.

EDIT: I think the house posted could rent for about $1900–$2500 is pushing it. $2500 will get you Pershing, or Granada street, something near Morley Field, with more square footage.

[Author]

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