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March 1, 2011 at 9:19 AM #673380March 1, 2011 at 11:47 AM #672289bearishgurlParticipant
[quote=carlsbadworker]. . . Most people started out with the number and I don’t think it is the right approach. . .[/quote]
carlsbadworker, I agree with this. I would not overthink to the ground such a purchase if I was already intimately familiar with the area it was situated in. If the current asking prices are as low as they have been in the last ten years, the prospective property has no MR or HOA dues and mortgage rates are at historic lows all at the same time (such as what we’re seeing now), it’s kind of a no-brainer if you have 30% down and can qualify for the loan. Whatever repairs it needs before placing a tenant in it (short of structural problems) is irrelevant if purchased at the right price. Consider that you will walk to the property from your own residence or drive to it in =<10 mins for "self-management" purposes.
I think if you are looking for an investment rental property, you should stick with an area you are highly familiar with. If this is the case, often, you will already have potential tenants lined up for the property prior to closing escrow on it. SFR's in certain areas where family ties are strong have a captive long-term audience for rentals. It's not uncommon for tenants to stay in a rental SFR in these areas for 5 - 15 years. This is likely much longer than one would stay in a condo. Lack of vacancies have to count for something.
I'm failing to understand why some Piggs might think condos have a better monthly cash flow than low-priced SFR's with no MR or HOA dues. I’m just not seeing that constellation on the street – at all. I’m seeing long-term, happy tenants.
Yes, I have been a landlord of five units total – a duplex (930 sf each side) and 1200+ sf house w/two rear rental units. Sold the duplex in 1990 and the house/rental units in 1994.
Edit: I am referring to the purchase of buy-and-hold rental SFRs here, NOT “buy-and-flip.”
March 1, 2011 at 11:47 AM #672351bearishgurlParticipant[quote=carlsbadworker]. . . Most people started out with the number and I don’t think it is the right approach. . .[/quote]
carlsbadworker, I agree with this. I would not overthink to the ground such a purchase if I was already intimately familiar with the area it was situated in. If the current asking prices are as low as they have been in the last ten years, the prospective property has no MR or HOA dues and mortgage rates are at historic lows all at the same time (such as what we’re seeing now), it’s kind of a no-brainer if you have 30% down and can qualify for the loan. Whatever repairs it needs before placing a tenant in it (short of structural problems) is irrelevant if purchased at the right price. Consider that you will walk to the property from your own residence or drive to it in =<10 mins for "self-management" purposes.
I think if you are looking for an investment rental property, you should stick with an area you are highly familiar with. If this is the case, often, you will already have potential tenants lined up for the property prior to closing escrow on it. SFR's in certain areas where family ties are strong have a captive long-term audience for rentals. It's not uncommon for tenants to stay in a rental SFR in these areas for 5 - 15 years. This is likely much longer than one would stay in a condo. Lack of vacancies have to count for something.
I'm failing to understand why some Piggs might think condos have a better monthly cash flow than low-priced SFR's with no MR or HOA dues. I’m just not seeing that constellation on the street – at all. I’m seeing long-term, happy tenants.
Yes, I have been a landlord of five units total – a duplex (930 sf each side) and 1200+ sf house w/two rear rental units. Sold the duplex in 1990 and the house/rental units in 1994.
Edit: I am referring to the purchase of buy-and-hold rental SFRs here, NOT “buy-and-flip.”
March 1, 2011 at 11:47 AM #672960bearishgurlParticipant[quote=carlsbadworker]. . . Most people started out with the number and I don’t think it is the right approach. . .[/quote]
carlsbadworker, I agree with this. I would not overthink to the ground such a purchase if I was already intimately familiar with the area it was situated in. If the current asking prices are as low as they have been in the last ten years, the prospective property has no MR or HOA dues and mortgage rates are at historic lows all at the same time (such as what we’re seeing now), it’s kind of a no-brainer if you have 30% down and can qualify for the loan. Whatever repairs it needs before placing a tenant in it (short of structural problems) is irrelevant if purchased at the right price. Consider that you will walk to the property from your own residence or drive to it in =<10 mins for "self-management" purposes.
I think if you are looking for an investment rental property, you should stick with an area you are highly familiar with. If this is the case, often, you will already have potential tenants lined up for the property prior to closing escrow on it. SFR's in certain areas where family ties are strong have a captive long-term audience for rentals. It's not uncommon for tenants to stay in a rental SFR in these areas for 5 - 15 years. This is likely much longer than one would stay in a condo. Lack of vacancies have to count for something.
I'm failing to understand why some Piggs might think condos have a better monthly cash flow than low-priced SFR's with no MR or HOA dues. I’m just not seeing that constellation on the street – at all. I’m seeing long-term, happy tenants.
Yes, I have been a landlord of five units total – a duplex (930 sf each side) and 1200+ sf house w/two rear rental units. Sold the duplex in 1990 and the house/rental units in 1994.
Edit: I am referring to the purchase of buy-and-hold rental SFRs here, NOT “buy-and-flip.”
March 1, 2011 at 11:47 AM #673098bearishgurlParticipant[quote=carlsbadworker]. . . Most people started out with the number and I don’t think it is the right approach. . .[/quote]
carlsbadworker, I agree with this. I would not overthink to the ground such a purchase if I was already intimately familiar with the area it was situated in. If the current asking prices are as low as they have been in the last ten years, the prospective property has no MR or HOA dues and mortgage rates are at historic lows all at the same time (such as what we’re seeing now), it’s kind of a no-brainer if you have 30% down and can qualify for the loan. Whatever repairs it needs before placing a tenant in it (short of structural problems) is irrelevant if purchased at the right price. Consider that you will walk to the property from your own residence or drive to it in =<10 mins for "self-management" purposes.
I think if you are looking for an investment rental property, you should stick with an area you are highly familiar with. If this is the case, often, you will already have potential tenants lined up for the property prior to closing escrow on it. SFR's in certain areas where family ties are strong have a captive long-term audience for rentals. It's not uncommon for tenants to stay in a rental SFR in these areas for 5 - 15 years. This is likely much longer than one would stay in a condo. Lack of vacancies have to count for something.
I'm failing to understand why some Piggs might think condos have a better monthly cash flow than low-priced SFR's with no MR or HOA dues. I’m just not seeing that constellation on the street – at all. I’m seeing long-term, happy tenants.
Yes, I have been a landlord of five units total – a duplex (930 sf each side) and 1200+ sf house w/two rear rental units. Sold the duplex in 1990 and the house/rental units in 1994.
Edit: I am referring to the purchase of buy-and-hold rental SFRs here, NOT “buy-and-flip.”
March 1, 2011 at 11:47 AM #673445bearishgurlParticipant[quote=carlsbadworker]. . . Most people started out with the number and I don’t think it is the right approach. . .[/quote]
carlsbadworker, I agree with this. I would not overthink to the ground such a purchase if I was already intimately familiar with the area it was situated in. If the current asking prices are as low as they have been in the last ten years, the prospective property has no MR or HOA dues and mortgage rates are at historic lows all at the same time (such as what we’re seeing now), it’s kind of a no-brainer if you have 30% down and can qualify for the loan. Whatever repairs it needs before placing a tenant in it (short of structural problems) is irrelevant if purchased at the right price. Consider that you will walk to the property from your own residence or drive to it in =<10 mins for "self-management" purposes.
I think if you are looking for an investment rental property, you should stick with an area you are highly familiar with. If this is the case, often, you will already have potential tenants lined up for the property prior to closing escrow on it. SFR's in certain areas where family ties are strong have a captive long-term audience for rentals. It's not uncommon for tenants to stay in a rental SFR in these areas for 5 - 15 years. This is likely much longer than one would stay in a condo. Lack of vacancies have to count for something.
I'm failing to understand why some Piggs might think condos have a better monthly cash flow than low-priced SFR's with no MR or HOA dues. I’m just not seeing that constellation on the street – at all. I’m seeing long-term, happy tenants.
Yes, I have been a landlord of five units total – a duplex (930 sf each side) and 1200+ sf house w/two rear rental units. Sold the duplex in 1990 and the house/rental units in 1994.
Edit: I am referring to the purchase of buy-and-hold rental SFRs here, NOT “buy-and-flip.”
March 2, 2011 at 12:24 PM #672474EchooooParticipantThis is an interesting point. A friend of mine is using this approach, catering to long term quality tenants and he is doing well, but again he has probably put down a sizable amount in order to achieve positive cash flow. As we all know SFR in a good school district and desirable family oriented neighborhood is NOT cheap. So one more thing to add to the equation is to look into your pocket. How deep it is?
Question to those who have invested in the areas such as San Carlos (2/2 cando that rents for 1350 and cost 130K), or the 1/1 cando that rents for 900-1000 and costs 100k, or 92120 3/3 cando that rents for 1500 cost 130-160k, what are your experience with tenants? What is the average vacancy and turn over rate? Would love to hear some thoughts.
As for out of state investment or out of SD investment, even if with the same amount of money, one can get a SFR instead of Cando, but if SD market is doing better overall, we could see the same level of return, right? Any thoughts?
March 2, 2011 at 12:24 PM #672535EchooooParticipantThis is an interesting point. A friend of mine is using this approach, catering to long term quality tenants and he is doing well, but again he has probably put down a sizable amount in order to achieve positive cash flow. As we all know SFR in a good school district and desirable family oriented neighborhood is NOT cheap. So one more thing to add to the equation is to look into your pocket. How deep it is?
Question to those who have invested in the areas such as San Carlos (2/2 cando that rents for 1350 and cost 130K), or the 1/1 cando that rents for 900-1000 and costs 100k, or 92120 3/3 cando that rents for 1500 cost 130-160k, what are your experience with tenants? What is the average vacancy and turn over rate? Would love to hear some thoughts.
As for out of state investment or out of SD investment, even if with the same amount of money, one can get a SFR instead of Cando, but if SD market is doing better overall, we could see the same level of return, right? Any thoughts?
March 2, 2011 at 12:24 PM #673145EchooooParticipantThis is an interesting point. A friend of mine is using this approach, catering to long term quality tenants and he is doing well, but again he has probably put down a sizable amount in order to achieve positive cash flow. As we all know SFR in a good school district and desirable family oriented neighborhood is NOT cheap. So one more thing to add to the equation is to look into your pocket. How deep it is?
Question to those who have invested in the areas such as San Carlos (2/2 cando that rents for 1350 and cost 130K), or the 1/1 cando that rents for 900-1000 and costs 100k, or 92120 3/3 cando that rents for 1500 cost 130-160k, what are your experience with tenants? What is the average vacancy and turn over rate? Would love to hear some thoughts.
As for out of state investment or out of SD investment, even if with the same amount of money, one can get a SFR instead of Cando, but if SD market is doing better overall, we could see the same level of return, right? Any thoughts?
March 2, 2011 at 12:24 PM #673284EchooooParticipantThis is an interesting point. A friend of mine is using this approach, catering to long term quality tenants and he is doing well, but again he has probably put down a sizable amount in order to achieve positive cash flow. As we all know SFR in a good school district and desirable family oriented neighborhood is NOT cheap. So one more thing to add to the equation is to look into your pocket. How deep it is?
Question to those who have invested in the areas such as San Carlos (2/2 cando that rents for 1350 and cost 130K), or the 1/1 cando that rents for 900-1000 and costs 100k, or 92120 3/3 cando that rents for 1500 cost 130-160k, what are your experience with tenants? What is the average vacancy and turn over rate? Would love to hear some thoughts.
As for out of state investment or out of SD investment, even if with the same amount of money, one can get a SFR instead of Cando, but if SD market is doing better overall, we could see the same level of return, right? Any thoughts?
March 2, 2011 at 12:24 PM #673630EchooooParticipantThis is an interesting point. A friend of mine is using this approach, catering to long term quality tenants and he is doing well, but again he has probably put down a sizable amount in order to achieve positive cash flow. As we all know SFR in a good school district and desirable family oriented neighborhood is NOT cheap. So one more thing to add to the equation is to look into your pocket. How deep it is?
Question to those who have invested in the areas such as San Carlos (2/2 cando that rents for 1350 and cost 130K), or the 1/1 cando that rents for 900-1000 and costs 100k, or 92120 3/3 cando that rents for 1500 cost 130-160k, what are your experience with tenants? What is the average vacancy and turn over rate? Would love to hear some thoughts.
As for out of state investment or out of SD investment, even if with the same amount of money, one can get a SFR instead of Cando, but if SD market is doing better overall, we could see the same level of return, right? Any thoughts?
March 2, 2011 at 1:00 PM #672484recordsclerkParticipantRegarding my partner’s 3bd/2bt unit in 92120, he has had a lot of turnover recently. 3 tennants in the last 3 years. He is currently listing the unit. It usually takes about a couple of days to weeks to get a qualified tennant. It depends also if it needs work. I would say anyone that can put a 100% into getting the unit cleaned up and listed should have no problem getting a tennant within a couple of weeks. He also has a single family 3bd/2ba home in Serra Mesa 92123 that rents for 1650 has the same tennants for last 4-5 years.
My aunts condo has had better luck. Same tennants for the last 2 years and prior to that the tennant stayed for 3 years. The last tennants moved in the next week after vacancy.
My single family 4bd/2ba in city heights has the same tennants since I purchased it in 2004.
My parents have a home in Cerritos that has had the same tennants since 1985.March 2, 2011 at 1:00 PM #672545recordsclerkParticipantRegarding my partner’s 3bd/2bt unit in 92120, he has had a lot of turnover recently. 3 tennants in the last 3 years. He is currently listing the unit. It usually takes about a couple of days to weeks to get a qualified tennant. It depends also if it needs work. I would say anyone that can put a 100% into getting the unit cleaned up and listed should have no problem getting a tennant within a couple of weeks. He also has a single family 3bd/2ba home in Serra Mesa 92123 that rents for 1650 has the same tennants for last 4-5 years.
My aunts condo has had better luck. Same tennants for the last 2 years and prior to that the tennant stayed for 3 years. The last tennants moved in the next week after vacancy.
My single family 4bd/2ba in city heights has the same tennants since I purchased it in 2004.
My parents have a home in Cerritos that has had the same tennants since 1985.March 2, 2011 at 1:00 PM #673155recordsclerkParticipantRegarding my partner’s 3bd/2bt unit in 92120, he has had a lot of turnover recently. 3 tennants in the last 3 years. He is currently listing the unit. It usually takes about a couple of days to weeks to get a qualified tennant. It depends also if it needs work. I would say anyone that can put a 100% into getting the unit cleaned up and listed should have no problem getting a tennant within a couple of weeks. He also has a single family 3bd/2ba home in Serra Mesa 92123 that rents for 1650 has the same tennants for last 4-5 years.
My aunts condo has had better luck. Same tennants for the last 2 years and prior to that the tennant stayed for 3 years. The last tennants moved in the next week after vacancy.
My single family 4bd/2ba in city heights has the same tennants since I purchased it in 2004.
My parents have a home in Cerritos that has had the same tennants since 1985.March 2, 2011 at 1:00 PM #673294recordsclerkParticipantRegarding my partner’s 3bd/2bt unit in 92120, he has had a lot of turnover recently. 3 tennants in the last 3 years. He is currently listing the unit. It usually takes about a couple of days to weeks to get a qualified tennant. It depends also if it needs work. I would say anyone that can put a 100% into getting the unit cleaned up and listed should have no problem getting a tennant within a couple of weeks. He also has a single family 3bd/2ba home in Serra Mesa 92123 that rents for 1650 has the same tennants for last 4-5 years.
My aunts condo has had better luck. Same tennants for the last 2 years and prior to that the tennant stayed for 3 years. The last tennants moved in the next week after vacancy.
My single family 4bd/2ba in city heights has the same tennants since I purchased it in 2004.
My parents have a home in Cerritos that has had the same tennants since 1985. -
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