Opinions on an investment property

[cv2]

Hi All,

I am thinking of buying an investment property as a hedge to inflation. I found this property:

http://www.sdlookup.com/MLS-090067774-3418_Del_Este_Oceanside_CA_92056

My maths is the following:

Yearly rent could be $1,200/month * 12 = $14,400.
HOA $350 * 12 = $4,200
Property Tax $1,000

So the income is about $9,200. Depending on the purchase price, the CAP rate could be as high as 10%.

What are my risks? I do not know the area well but I visited couple of times and seems to be a good area and surprisingly it is in Carlsbad school district. Did I miss any thing?

[booter1]

CV2- I think you are perhaps neglecting to include the following in your calcualtions..

1) Assuming 100% occupancy rate?
Try running numbers at 70%

2) Insurance costs?

3) Maintenance costs- both routine and costs incurred between renters

4) Risk of increasing HOA costs as well as any special assessments?

5)Any Mello-Roos costs?

6) Don’t know the area but property taxes seem low

[booter1]

CV2- I think you are perhaps neglecting to include the following in your calcualtions..

1) Assuming 100% occupancy rate?
Try running numbers at 70%

2) Insurance costs?

3) Maintenance costs- both routine and costs incurred between renters

4) Risk of increasing HOA costs as well as any special assessments?

5)Any Mello-Roos costs?

6) Don’t know the area but property taxes seem low

[booter1]

CV2- I think you are perhaps neglecting to include the following in your calcualtions..

1) Assuming 100% occupancy rate?
Try running numbers at 70%

2) Insurance costs?

3) Maintenance costs- both routine and costs incurred between renters

4) Risk of increasing HOA costs as well as any special assessments?

5)Any Mello-Roos costs?

6) Don’t know the area but property taxes seem low

[booter1]

CV2- I think you are perhaps neglecting to include the following in your calcualtions..

1) Assuming 100% occupancy rate?
Try running numbers at 70%

2) Insurance costs?

3) Maintenance costs- both routine and costs incurred between renters

4) Risk of increasing HOA costs as well as any special assessments?

5)Any Mello-Roos costs?

6) Don’t know the area but property taxes seem low

[booter1]

CV2- I think you are perhaps neglecting to include the following in your calcualtions..

1) Assuming 100% occupancy rate?
Try running numbers at 70%

2) Insurance costs?

3) Maintenance costs- both routine and costs incurred between renters

4) Risk of increasing HOA costs as well as any special assessments?

5)Any Mello-Roos costs?

6) Don’t know the area but property taxes seem low

[cv2]

As far as I know, there is no mello-roos because it is an established area. The property tax is 1% of sale price and the asking price is $89,000. Although it won’t be the final price, I just put $1,000 a year as an estimate.

Yes, I missed maintenance costs. Since it is a condo complex, HOA carries insurance. Do I have to buy extra insurance?

Thanks!

[cv2]

As far as I know, there is no mello-roos because it is an established area. The property tax is 1% of sale price and the asking price is $89,000. Although it won’t be the final price, I just put $1,000 a year as an estimate.

Yes, I missed maintenance costs. Since it is a condo complex, HOA carries insurance. Do I have to buy extra insurance?

Thanks!

[cv2]

As far as I know, there is no mello-roos because it is an established area. The property tax is 1% of sale price and the asking price is $89,000. Although it won’t be the final price, I just put $1,000 a year as an estimate.

Yes, I missed maintenance costs. Since it is a condo complex, HOA carries insurance. Do I have to buy extra insurance?

Thanks!

[cv2]

As far as I know, there is no mello-roos because it is an established area. The property tax is 1% of sale price and the asking price is $89,000. Although it won’t be the final price, I just put $1,000 a year as an estimate.

Yes, I missed maintenance costs. Since it is a condo complex, HOA carries insurance. Do I have to buy extra insurance?

Thanks!

[cv2]

As far as I know, there is no mello-roos because it is an established area. The property tax is 1% of sale price and the asking price is $89,000. Although it won’t be the final price, I just put $1,000 a year as an estimate.

Yes, I missed maintenance costs. Since it is a condo complex, HOA carries insurance. Do I have to buy extra insurance?

Thanks!

[cv2]

With 70% occupancy rate, the income drops to $4,600. The CAP rate drops pretty significantly, but it still beats the negative saving rate in the bank.

Any thoughts?

[cv2]

With 70% occupancy rate, the income drops to $4,600. The CAP rate drops pretty significantly, but it still beats the negative saving rate in the bank.

Any thoughts?

[cv2]

With 70% occupancy rate, the income drops to $4,600. The CAP rate drops pretty significantly, but it still beats the negative saving rate in the bank.

Any thoughts?

[cv2]

With 70% occupancy rate, the income drops to $4,600. The CAP rate drops pretty significantly, but it still beats the negative saving rate in the bank.

Any thoughts?

[Author]

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