Purchasing Rental Property

[recordsclerk]

If you have the cash, you might want to try Trustees auctions. You can easily save 10% on purchase price. The only closing cost is the transfer fee which is about $200 for $200,000 purchase. You need to do your homework before you jump in. The margins are not that good for flipping, but buy and hold is still a viable option. We bought a newer town home in Chula Vista (91914) that rents for 1800+ (3bd/2.5ba/2cargarage). We tried to relocate our tennants and it was a real challenge finding rentals in that area. Every new listing would get snatched up real fast. We had the same thing happen 6 months before when we were relocating other tennants on a smilar town home in Otay Ranch. In both cases units going for $1800 for 3bd/2.5ba were hard to find and would go real fast after being listed. These town homes retail for 230-255, but at trustees you can find one for around 180-210 if you have patience and time. The tax rates and HOA are high, but you have zero to no maintainance for newer contruction 2004-2007. ROI in not that great, but for someone looking for newer construction that pencils out, you might want to give Chula Vista a look.
My partner also has a Condo (3bd/2bat)in 92120. Units in the complex are selling for 130-160 for the 3 bed and 110-130 for 2 bed/2 bath. Rents for the 3 bed are about 1500 and 1300 for the 2 bed.
My aunt has a 2bd/2ba condo in north park near 30th that rents for $1400. It does have wash/dry and 1 car garage. She has no problem renting that place out. The condos in her complex go for about 140-150. There are only 8 units, so it’s real hard to comp since there have not been any sales in the last year. Also not every unit has wash/dry, garage. Of street parking is big in North Park. Having a wash/dry and garage can get at least $100 prem.
We are not big time investors. We are just normal people that have done our homework.

[Ricechex]

[quote=recordsclerk]Ricechex,

Is this a smaller home? My Somali tennants keep asking me if I have another rental for their friends. They are looking for 4+ beds and already section 8 clients. 4 beds can rent for $2000 if you can show comps.[/quote]

It is way too small for that many adults–776 square feet, but they would probably use the 2 car garage for some extra space. I just really don’t want to hassle it with anymore, just done—

[Ricechex]

[quote=recordsclerk]Ricechex,

Is this a smaller home? My Somali tennants keep asking me if I have another rental for their friends. They are looking for 4+ beds and already section 8 clients. 4 beds can rent for $2000 if you can show comps.[/quote]

It is way too small for that many adults–776 square feet, but they would probably use the 2 car garage for some extra space. I just really don’t want to hassle it with anymore, just done—

[Ricechex]

[quote=recordsclerk]Ricechex,

Is this a smaller home? My Somali tennants keep asking me if I have another rental for their friends. They are looking for 4+ beds and already section 8 clients. 4 beds can rent for $2000 if you can show comps.[/quote]

It is way too small for that many adults–776 square feet, but they would probably use the 2 car garage for some extra space. I just really don’t want to hassle it with anymore, just done—

[Ricechex]

[quote=recordsclerk]Ricechex,

Is this a smaller home? My Somali tennants keep asking me if I have another rental for their friends. They are looking for 4+ beds and already section 8 clients. 4 beds can rent for $2000 if you can show comps.[/quote]

It is way too small for that many adults–776 square feet, but they would probably use the 2 car garage for some extra space. I just really don’t want to hassle it with anymore, just done—

[Ricechex]

[quote=recordsclerk]Ricechex,

Is this a smaller home? My Somali tennants keep asking me if I have another rental for their friends. They are looking for 4+ beds and already section 8 clients. 4 beds can rent for $2000 if you can show comps.[/quote]

It is way too small for that many adults–776 square feet, but they would probably use the 2 car garage for some extra space. I just really don’t want to hassle it with anymore, just done—

[recordsclerk]

That is too small. It would probably be 2 adults and 5+ children per household. I met one of the families and they have 8 children. They really like the city heights area. The family that rents my house is 2 adults and 6 children. They are really good people. It’s a lot of wear and tear on the house, but the higher rent offsets the extra repairs.

[recordsclerk]

That is too small. It would probably be 2 adults and 5+ children per household. I met one of the families and they have 8 children. They really like the city heights area. The family that rents my house is 2 adults and 6 children. They are really good people. It’s a lot of wear and tear on the house, but the higher rent offsets the extra repairs.

[recordsclerk]

That is too small. It would probably be 2 adults and 5+ children per household. I met one of the families and they have 8 children. They really like the city heights area. The family that rents my house is 2 adults and 6 children. They are really good people. It’s a lot of wear and tear on the house, but the higher rent offsets the extra repairs.

[recordsclerk]

That is too small. It would probably be 2 adults and 5+ children per household. I met one of the families and they have 8 children. They really like the city heights area. The family that rents my house is 2 adults and 6 children. They are really good people. It’s a lot of wear and tear on the house, but the higher rent offsets the extra repairs.

[recordsclerk]

That is too small. It would probably be 2 adults and 5+ children per household. I met one of the families and they have 8 children. They really like the city heights area. The family that rents my house is 2 adults and 6 children. They are really good people. It’s a lot of wear and tear on the house, but the higher rent offsets the extra repairs.

[carlsbadworker]

[quote=sdrealtor]As for me, I will take a lower return to have the comfort of being able to self manage and keep a close eye on my rentals. Its different for everyone.

There is no such thing as a free lunch[/quote]

I agree with sdr on this one. I think what is missing in this nice thread is the ability to work things out backward.

To me, it has to start out with what your ideal tenants persona (that matches your skills and resources to provide a rentatl to them), and then work backward to see what properties you should purchase and only then check whether the number would work.

Most people started out with the number and I don’t think it is the right approach. The number would be very different if you are catering long-term tenants because you rely on future price appreciation of your property (e.g. good schoo districts) or if you are trying to get the maximal possible cash-flows out of the tenants as your goal is to flip the property quickly as well. There are always common things in serving these different demographics, but there are also many differences.

All successful real-esate investors eventually get specialized in one special-area of real-estate…and thus make the productivity soar just as Adam Smith’s pin factory workers.

Disclaimer: I don’t own any rental property so maybe I don’t know what I am talking about.

[carlsbadworker]

[quote=sdrealtor]As for me, I will take a lower return to have the comfort of being able to self manage and keep a close eye on my rentals. Its different for everyone.

There is no such thing as a free lunch[/quote]

I agree with sdr on this one. I think what is missing in this nice thread is the ability to work things out backward.

To me, it has to start out with what your ideal tenants persona (that matches your skills and resources to provide a rentatl to them), and then work backward to see what properties you should purchase and only then check whether the number would work.

Most people started out with the number and I don’t think it is the right approach. The number would be very different if you are catering long-term tenants because you rely on future price appreciation of your property (e.g. good schoo districts) or if you are trying to get the maximal possible cash-flows out of the tenants as your goal is to flip the property quickly as well. There are always common things in serving these different demographics, but there are also many differences.

All successful real-esate investors eventually get specialized in one special-area of real-estate…and thus make the productivity soar just as Adam Smith’s pin factory workers.

Disclaimer: I don’t own any rental property so maybe I don’t know what I am talking about.

[carlsbadworker]

[quote=sdrealtor]As for me, I will take a lower return to have the comfort of being able to self manage and keep a close eye on my rentals. Its different for everyone.

There is no such thing as a free lunch[/quote]

I agree with sdr on this one. I think what is missing in this nice thread is the ability to work things out backward.

To me, it has to start out with what your ideal tenants persona (that matches your skills and resources to provide a rentatl to them), and then work backward to see what properties you should purchase and only then check whether the number would work.

Most people started out with the number and I don’t think it is the right approach. The number would be very different if you are catering long-term tenants because you rely on future price appreciation of your property (e.g. good schoo districts) or if you are trying to get the maximal possible cash-flows out of the tenants as your goal is to flip the property quickly as well. There are always common things in serving these different demographics, but there are also many differences.

All successful real-esate investors eventually get specialized in one special-area of real-estate…and thus make the productivity soar just as Adam Smith’s pin factory workers.

Disclaimer: I don’t own any rental property so maybe I don’t know what I am talking about.

[carlsbadworker]

[quote=sdrealtor]As for me, I will take a lower return to have the comfort of being able to self manage and keep a close eye on my rentals. Its different for everyone.

There is no such thing as a free lunch[/quote]

I agree with sdr on this one. I think what is missing in this nice thread is the ability to work things out backward.

To me, it has to start out with what your ideal tenants persona (that matches your skills and resources to provide a rentatl to them), and then work backward to see what properties you should purchase and only then check whether the number would work.

Most people started out with the number and I don’t think it is the right approach. The number would be very different if you are catering long-term tenants because you rely on future price appreciation of your property (e.g. good schoo districts) or if you are trying to get the maximal possible cash-flows out of the tenants as your goal is to flip the property quickly as well. There are always common things in serving these different demographics, but there are also many differences.

All successful real-esate investors eventually get specialized in one special-area of real-estate…and thus make the productivity soar just as Adam Smith’s pin factory workers.

Disclaimer: I don’t own any rental property so maybe I don’t know what I am talking about.

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