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  • July 24, 2009 at 5:55 PM #437127
    barnaby33
    Participant

    What area? I never understood from any logical standpoint why it would make sense as owner occupied, when it wouldn’t as a rental. Making sense means based on logic. If it made sense to live in it then it should make sense as a rental. I suppose its part and parcel of it not making sense that we inflate our money away.

    July 24, 2009 at 8:31 PM #436419
    4plexowner
    Participant

    “why it would make sense as owner occupied, when it wouldn’t as a rental”

    an owner will pay a premium for a nice place to live but most tenants are choosing a place based on affordability as the first priority with “niceness” being a lower priority

    when I was buying my rental properties I only bought units that I would live in myself – in hindsight, there is probably more money to be made as a landlord by renting low end units that I wouldn’t live in on a dare

    some people classify rental units into three categories: A, B and C – an A property is considered a trophy property – something you can brag to your friends about – a B property is considered bread and butter – decent property, decent location but nothing exceptional – a C property is the lowest rung on the ladder – some people would call it slum-lording at the C level

    I bought B properties but think there might be more money to be made in C properties – I would never deal with C level tenants personally – if I were going to buy C level units I would have them managed by someone else

    July 24, 2009 at 8:31 PM #436625
    4plexowner
    Participant

    “why it would make sense as owner occupied, when it wouldn’t as a rental”

    an owner will pay a premium for a nice place to live but most tenants are choosing a place based on affordability as the first priority with “niceness” being a lower priority

    when I was buying my rental properties I only bought units that I would live in myself – in hindsight, there is probably more money to be made as a landlord by renting low end units that I wouldn’t live in on a dare

    some people classify rental units into three categories: A, B and C – an A property is considered a trophy property – something you can brag to your friends about – a B property is considered bread and butter – decent property, decent location but nothing exceptional – a C property is the lowest rung on the ladder – some people would call it slum-lording at the C level

    I bought B properties but think there might be more money to be made in C properties – I would never deal with C level tenants personally – if I were going to buy C level units I would have them managed by someone else

    July 24, 2009 at 8:31 PM #436944
    4plexowner
    Participant

    “why it would make sense as owner occupied, when it wouldn’t as a rental”

    an owner will pay a premium for a nice place to live but most tenants are choosing a place based on affordability as the first priority with “niceness” being a lower priority

    when I was buying my rental properties I only bought units that I would live in myself – in hindsight, there is probably more money to be made as a landlord by renting low end units that I wouldn’t live in on a dare

    some people classify rental units into three categories: A, B and C – an A property is considered a trophy property – something you can brag to your friends about – a B property is considered bread and butter – decent property, decent location but nothing exceptional – a C property is the lowest rung on the ladder – some people would call it slum-lording at the C level

    I bought B properties but think there might be more money to be made in C properties – I would never deal with C level tenants personally – if I were going to buy C level units I would have them managed by someone else

    July 24, 2009 at 8:31 PM #437016
    4plexowner
    Participant

    “why it would make sense as owner occupied, when it wouldn’t as a rental”

    an owner will pay a premium for a nice place to live but most tenants are choosing a place based on affordability as the first priority with “niceness” being a lower priority

    when I was buying my rental properties I only bought units that I would live in myself – in hindsight, there is probably more money to be made as a landlord by renting low end units that I wouldn’t live in on a dare

    some people classify rental units into three categories: A, B and C – an A property is considered a trophy property – something you can brag to your friends about – a B property is considered bread and butter – decent property, decent location but nothing exceptional – a C property is the lowest rung on the ladder – some people would call it slum-lording at the C level

    I bought B properties but think there might be more money to be made in C properties – I would never deal with C level tenants personally – if I were going to buy C level units I would have them managed by someone else

    July 24, 2009 at 8:31 PM #437181
    4plexowner
    Participant

    “why it would make sense as owner occupied, when it wouldn’t as a rental”

    an owner will pay a premium for a nice place to live but most tenants are choosing a place based on affordability as the first priority with “niceness” being a lower priority

    when I was buying my rental properties I only bought units that I would live in myself – in hindsight, there is probably more money to be made as a landlord by renting low end units that I wouldn’t live in on a dare

    some people classify rental units into three categories: A, B and C – an A property is considered a trophy property – something you can brag to your friends about – a B property is considered bread and butter – decent property, decent location but nothing exceptional – a C property is the lowest rung on the ladder – some people would call it slum-lording at the C level

    I bought B properties but think there might be more money to be made in C properties – I would never deal with C level tenants personally – if I were going to buy C level units I would have them managed by someone else

    July 24, 2009 at 11:55 PM #436463
    jamsvet
    Participant

    I couldn’t agree more. I too wouldn’t own something I wouldn’t live in myself and it worked out quite well for me. At least I was able to sleep nights. I bought mostly in North Park and Hillcrest; nice areas with decent properties. For a short time, I managed a property for a friend, that was on 42nd South of El Cajon Blvd and had nothing but problems. I actually caught two tenants jumping off the second floor balcony onto mattresses they had placed in the courtyard.

    Personally, I’m glad I got out when I did and while I’m still looking for other properties, nothing has come along that even remotely makes financial sense.

    July 24, 2009 at 11:55 PM #436669
    jamsvet
    Participant

    I couldn’t agree more. I too wouldn’t own something I wouldn’t live in myself and it worked out quite well for me. At least I was able to sleep nights. I bought mostly in North Park and Hillcrest; nice areas with decent properties. For a short time, I managed a property for a friend, that was on 42nd South of El Cajon Blvd and had nothing but problems. I actually caught two tenants jumping off the second floor balcony onto mattresses they had placed in the courtyard.

    Personally, I’m glad I got out when I did and while I’m still looking for other properties, nothing has come along that even remotely makes financial sense.

    July 24, 2009 at 11:55 PM #436988
    jamsvet
    Participant

    I couldn’t agree more. I too wouldn’t own something I wouldn’t live in myself and it worked out quite well for me. At least I was able to sleep nights. I bought mostly in North Park and Hillcrest; nice areas with decent properties. For a short time, I managed a property for a friend, that was on 42nd South of El Cajon Blvd and had nothing but problems. I actually caught two tenants jumping off the second floor balcony onto mattresses they had placed in the courtyard.

    Personally, I’m glad I got out when I did and while I’m still looking for other properties, nothing has come along that even remotely makes financial sense.

    July 24, 2009 at 11:55 PM #437060
    jamsvet
    Participant

    I couldn’t agree more. I too wouldn’t own something I wouldn’t live in myself and it worked out quite well for me. At least I was able to sleep nights. I bought mostly in North Park and Hillcrest; nice areas with decent properties. For a short time, I managed a property for a friend, that was on 42nd South of El Cajon Blvd and had nothing but problems. I actually caught two tenants jumping off the second floor balcony onto mattresses they had placed in the courtyard.

    Personally, I’m glad I got out when I did and while I’m still looking for other properties, nothing has come along that even remotely makes financial sense.

    July 24, 2009 at 11:55 PM #437224
    jamsvet
    Participant

    I couldn’t agree more. I too wouldn’t own something I wouldn’t live in myself and it worked out quite well for me. At least I was able to sleep nights. I bought mostly in North Park and Hillcrest; nice areas with decent properties. For a short time, I managed a property for a friend, that was on 42nd South of El Cajon Blvd and had nothing but problems. I actually caught two tenants jumping off the second floor balcony onto mattresses they had placed in the courtyard.

    Personally, I’m glad I got out when I did and while I’m still looking for other properties, nothing has come along that even remotely makes financial sense.

    July 25, 2009 at 5:22 AM #436488
    4plexowner
    Participant

    jamsvet – I found that the lower the rent on a unit the more problems I had with the tenants – I managed all my units personally but won’t do that again if I buy more rentals in the future – I am also glad that I got out when I did (2002 to 2006)

    I will buy more rental units in the future but I don’t think we are anywhere near a bottom in San Diego’s market – I suspect the rental market will get to the same point it was at in 1995/6 – the vacancy rate was high (8%?) by San Diego standards and landlords were not happy campers – move-in discounts, one month’s free rent, lowered rents and high vacancy rates did not make for profitable landlording and the price of rental property reflected that – we currently have increasing unemployment, dropping property prices and an outflow of people leaving San Diego – IMO all of these factors will result in lower rental rates and decreased prices for rental property

    the downtown condo situation is another unknown factor for the rental market – way too many condos have been built (and continue to be built) downtown – I suspect that the majority of them will become rentals and it won’t surprise me if downtown condos become the next low-rent district in San Diego

    time will tell …

    July 25, 2009 at 5:22 AM #436694
    4plexowner
    Participant

    jamsvet – I found that the lower the rent on a unit the more problems I had with the tenants – I managed all my units personally but won’t do that again if I buy more rentals in the future – I am also glad that I got out when I did (2002 to 2006)

    I will buy more rental units in the future but I don’t think we are anywhere near a bottom in San Diego’s market – I suspect the rental market will get to the same point it was at in 1995/6 – the vacancy rate was high (8%?) by San Diego standards and landlords were not happy campers – move-in discounts, one month’s free rent, lowered rents and high vacancy rates did not make for profitable landlording and the price of rental property reflected that – we currently have increasing unemployment, dropping property prices and an outflow of people leaving San Diego – IMO all of these factors will result in lower rental rates and decreased prices for rental property

    the downtown condo situation is another unknown factor for the rental market – way too many condos have been built (and continue to be built) downtown – I suspect that the majority of them will become rentals and it won’t surprise me if downtown condos become the next low-rent district in San Diego

    time will tell …

    July 25, 2009 at 5:22 AM #437013
    4plexowner
    Participant

    jamsvet – I found that the lower the rent on a unit the more problems I had with the tenants – I managed all my units personally but won’t do that again if I buy more rentals in the future – I am also glad that I got out when I did (2002 to 2006)

    I will buy more rental units in the future but I don’t think we are anywhere near a bottom in San Diego’s market – I suspect the rental market will get to the same point it was at in 1995/6 – the vacancy rate was high (8%?) by San Diego standards and landlords were not happy campers – move-in discounts, one month’s free rent, lowered rents and high vacancy rates did not make for profitable landlording and the price of rental property reflected that – we currently have increasing unemployment, dropping property prices and an outflow of people leaving San Diego – IMO all of these factors will result in lower rental rates and decreased prices for rental property

    the downtown condo situation is another unknown factor for the rental market – way too many condos have been built (and continue to be built) downtown – I suspect that the majority of them will become rentals and it won’t surprise me if downtown condos become the next low-rent district in San Diego

    time will tell …

    July 25, 2009 at 5:22 AM #437085
    4plexowner
    Participant

    jamsvet – I found that the lower the rent on a unit the more problems I had with the tenants – I managed all my units personally but won’t do that again if I buy more rentals in the future – I am also glad that I got out when I did (2002 to 2006)

    I will buy more rental units in the future but I don’t think we are anywhere near a bottom in San Diego’s market – I suspect the rental market will get to the same point it was at in 1995/6 – the vacancy rate was high (8%?) by San Diego standards and landlords were not happy campers – move-in discounts, one month’s free rent, lowered rents and high vacancy rates did not make for profitable landlording and the price of rental property reflected that – we currently have increasing unemployment, dropping property prices and an outflow of people leaving San Diego – IMO all of these factors will result in lower rental rates and decreased prices for rental property

    the downtown condo situation is another unknown factor for the rental market – way too many condos have been built (and continue to be built) downtown – I suspect that the majority of them will become rentals and it won’t surprise me if downtown condos become the next low-rent district in San Diego

    time will tell …

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