Rent are rising

[an]

[quote=flu]dealing with 15 renters doesn’t end up being a “passive investment”. It ends up being an almost full time/part time job, even if you use a property manager. I mean, you wouldn’t want to be completely hands off either, since then your costs would get totally out of wack….Also, the likelihood of getting near 100% occupancy in at 15 condos for an extended period of time is less likely than I think renting 3 houses to 3 families. Then again, I’ve haven’t been in the situation of dealing with 15 tenants yet, so I wouldn’t know if the PITA factor would really be an issue….[/quote]I know someone who have to deal w/ 10 in low income areas and it’s not as bad as you think it is. It’s definitely not their full time job.

If you don’t want to deal w/ 15 1/1 condo, you can deal w/ 6 SFH in MM instead. They’re going for $2400 now: http://sandiego.craigslist.org/csd/apa/5032950024.html. Since you don’t have to deal w/ HOA, your cost to maintain would be less than 3 SFH in CV. That mean your rental income would be $14.4k/month. Maybe you can maintain 6 yourself :-). That would actually yield a higher rent than the 15 1/1 condo.

[bewildering]

[quote=flu][quote=AN][quote=flu]When will I see $1400/month for a 1/1 in MM?

When will I see $4500/month for 1800sqft in Santa Clara?

:)[/quote]
Today:
http://sandiego.craigslist.org/nsd/apa/5029976437.html

:-D[/quote]

hahaha… That guy/girl/company is smoking some good crack.[/quote]

Look at this map
http://demographics.coopercenter.org/DotMap/index.html

And think about the other active thread on this site. Methinks Mira Mesa and CV have demographic driven price rises for both rent and purchase.

[Coronita]

.

[Coronita]

[quote=bewildering][quote=flu][quote=AN][quote=flu]When will I see $1400/month for a 1/1 in MM?

When will I see $4500/month for 1800sqft in Santa Clara?

:)[/quote]
Today:
http://sandiego.craigslist.org/nsd/apa/5029976437.html

:-D[/quote]

1586 is steep for an easy side nonluxury condo
$1586 for a 1/1 on the east side of mm is overpriced for a non luxury apt.

hahaha… That guy/girl/company is smoking some good crack.[/quote]

Look at this map
http://demographics.coopercenter.org/DotMap/index.html

And think about the other active thread on this site. Methinks Mira Mesa and CV have demographic driven price rises for both rent and purchase.[/quote]

1500 is steep for east side.

[an]

It’s in the middle of Mira mesa, not east side. It’s behind babies r us.

[Coronita]

[quote=AN]It’s in the middle of Mira mesa, not east side. It’s behind babies r us.[/quote]

Oops. Mixed this one up for something else…Still kinda high (for now)….

[flyer]

When we started investing, no one ever dreamed San Diego would boom as it has. Our rentals have been pretty much hassle free over the years, and they do give you an autonomy you will not find in the daily grind.

As you folks are doing, it’s a good idea to build your portfolio as wisely and as quickly as you can while you are young, because one or two bumps in the road as you get older could result in disaster later on. I’ve seen it happen to friends via unexpected job loss or health issues, unexpected economic turmoil, etc., at a critical point in their lives. Planning well now will definitely pay off later.

[an]

[quote=flu][quote=AN]It’s in the middle of Mira mesa, not east side. It’s behind babies r us.[/quote]

Oops. Mixed this one up for something else…Still kinda high (for now)….[/quote]Yes, still kinda high, but apartments have always been higher than condo. Here’s Gable Summerset apartments: http://gables.com/find/apartment/441-gables-summerset-san-diego-ca. 1/1 are listed at $1460-1945. I assume that’s the differences between 1 year lease and month to month. Also, Summerset, fridge is extra.

[spdrun]

Why are apartments higher than condos, out of curiosity? Amenities in each type of complex are very similar from what I’ve seen.

Is management overhead for an apartment complex simply higher than a condo HOA fee?

The price spread could also have to do with individual apartment prices. A few years ago, a friend of mine rented a 1/1 apartment in Carlsbad, walking distance to the beach. Price? $800/mo.

After the first night staying with her, I knew why it was so cheap. It faced the tracks, near a level crossing and freight trains would pass by late and blow their horns for the crossing, about 100 ft from the window!

[livinincali]

[quote=spdrun]Why are apartments higher than condos, out of curiosity? Amenities in each type of complex are very similar from what I’ve seen.
[/quote]

Large apartment complexes have always been able to push the envelop on rent. They always have some percentage of vacant units and an extra month of vacancy on one unit is a tiny drop in the bucket. A Landlord with a couple condos doesn’t usually have that luxury. They don’t want to miss a month or two of rent in exchange for a marginal increase in rent because it probably will take a couple of years to make that lost month of rent back in the higher rate.

Large apartment complexes have a better marketing profile than an individual landlord and they always have something available for people new to the city or in some kind of pinch. Large apartment complexes are also probably willing to take some chances on tenant with poor credit profiles. In addition they don’t care if some landlord down the street is only charging $1200 for a single condo unit, they only care about the other large apartment complexes in the area and the vacancy rate they are experiencing.

The small time landlord wants a quality tenant and to get that quality tenant they are willing to take a bit of a hit on price.

[an]

One other thing is that apartment tend to have much smaller deposit. Some people are more willing to pay more monthly than plunk down a large deposit.

[Coronita]

As a small time landlord, I won’t consider tenants with anything less than a stellar credit score….I’d rather have a slighly lower than market rent to pay for that as well as signing for a longer term lease.

[FlyerInHi]

I require stellar credit and I charge more.
In my mind, people with good credit and better jobs can afford to pay more. Give them better quality and they’ll pay more.

[spdrun]

I just check references, interview, and do a Google search for any news about violent crime in the prospect’s name. I don’t ask for an SSN to run credit — too much liability in case of ID theft in future. No point to check pay stubs either. Too easily forged.

Getting 3-4 friends to agree on reference stories is surprisingly difficult.

[FlyerInHi]

you’re easy, spd. I send a fax to the employer asking for employment verification. No contract without positive employment verification.

I’d rather lose a month of rent than deal with people with money or personal issues such as needing to move quickly because of drama. Those people are not conscious of the quality of the housing. They just need an apartment to call home.

[Author]

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