February 21, 2006 at 5:23 PM #6377murrayParticipant
I own 3 SFR rental properties, all in Tierrasanta.
2 properties turned over in June and July 2005. At that time there was lots of rental competition in Tierrasanta; a large selection of available properties, bigger properties with lower rents etc.
I watch the rental ads in SD U/T and Craigslist and have noticed that for the past 2 months or so there are very few available rentals in Tierrasanta. The rental prices posted have not increased much, but I am amazed how few properties are available for rent! I’ve been doing this since 1989 and have experienced many markets but I don’t recall something like this. My theory: fewer speculators/investors are buying property for rentals/flippers and therefore there are fewer rentals available. Anyone have other insight?
fyi – 2 out of the 3 properties are rented by couples who could afford to buy but are waiting for property price declines.
fyi – I relocated to LA and am currently renting because LA property prices are unbelievable. LA market was strong in 2005 – up 25%! Try $675k for a 65 yr old 1300 sg ft crackerbox! SD is cheap!!February 21, 2006 at 7:18 PM #23456powaysellerParticipant
I was looking for rental housing in Poway/Rancho Bernardo in November and December 2005. I did a brief search on my usual lists: U-T, craiglist, backpage.com. I did not search the MLS, since my realtor no longer has that access for me. My cursory overview shows the same number of rentals, and now it appears they are all well priced, at about $1/sq ft. In my 1-block area, there are at least 4 of us who are renting. These are attached units, so they may have been cheaper for investors to buy.
When I was looking at rentals, there were about half owned by investors, and the other half by people who had to move, and decided to keep their SD property for appreciation. In my neighborhood, there are 2 houses for sale, but neither is owned by an investor.
We had read about flippers/speculators pulling out, but has anyone seen this happening yet? My landlord is an investor, he’s in it for the long term. He owns many rentals. The flippers should be trying to cash out. Of course, flippers don’t put their homes up for rent. They fix it up and dump it within a few months, right.
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