What’s an acceptable price-rent ratio in San Diego?

[Daniel]

Is your question directed to me? Well, I’m not sure I could come up with a straight answer, but let me deflect it a bit by saying that the house price/rent ratio is a lot like the stock P/E ratio (with certain exceptions and caveats, of course). You only need to divide it by 12 (to consider yearly instead of monthly rent), and presto! you get something that looks a lot more familiar.

[danthedart]

You would probably need sub 80 to be cash flow positive.

Have you heard of the 50% rule?
http://www.biggerpockets.com/forums/52/topics/17612-where-does-the-5-rule-come-from-

[danthedart]

You would probably need sub 80 to be cash flow positive.

Have you heard of the 50% rule?
http://www.biggerpockets.com/forums/52/topics/17612-where-does-the-5-rule-come-from-

[danthedart]

You would probably need sub 80 to be cash flow positive.

Have you heard of the 50% rule?
http://www.biggerpockets.com/forums/52/topics/17612-where-does-the-5-rule-come-from-

[danthedart]

You would probably need sub 80 to be cash flow positive.

Have you heard of the 50% rule?
http://www.biggerpockets.com/forums/52/topics/17612-where-does-the-5-rule-come-from-

[danthedart]

You would probably need sub 80 to be cash flow positive.

Have you heard of the 50% rule?
http://www.biggerpockets.com/forums/52/topics/17612-where-does-the-5-rule-come-from-

[ybitz]

Even in Mira Mesa (definitely not high end), the ratio seems to be over 200.

Ratio: 217
$1860 rent [craigslist]
http://sandiego.craigslist.org/csd/ap/1177483541.html
$404,500 price[zillow]
http://www.zillow.com/homedetails/11559-Polaris-Dr-San-Diego-CA-92126/16819385_zpid/

Ratio: 211
$1900 rent [craigslist]
http://sandiego.craigslist.org/csd/apa/1177473494.html
price[zillow]
$401,500 price [zillow]
http://www.zillow.com/homedetails/7462-Dancy-Rd-San-Diego-CA-92126/16834149_zpid/

And I thought the real estate bubble had burst in the non-high-end areas such as mira mesa. How come we’re not seeing ratios in the more reasonable 150 range?

[ybitz]

Even in Mira Mesa (definitely not high end), the ratio seems to be over 200.

Ratio: 217
$1860 rent [craigslist]
http://sandiego.craigslist.org/csd/ap/1177483541.html
$404,500 price[zillow]
http://www.zillow.com/homedetails/11559-Polaris-Dr-San-Diego-CA-92126/16819385_zpid/

Ratio: 211
$1900 rent [craigslist]
http://sandiego.craigslist.org/csd/apa/1177473494.html
price[zillow]
$401,500 price [zillow]
http://www.zillow.com/homedetails/7462-Dancy-Rd-San-Diego-CA-92126/16834149_zpid/

And I thought the real estate bubble had burst in the non-high-end areas such as mira mesa. How come we’re not seeing ratios in the more reasonable 150 range?

[ybitz]

Even in Mira Mesa (definitely not high end), the ratio seems to be over 200.

Ratio: 217
$1860 rent [craigslist]
http://sandiego.craigslist.org/csd/ap/1177483541.html
$404,500 price[zillow]
http://www.zillow.com/homedetails/11559-Polaris-Dr-San-Diego-CA-92126/16819385_zpid/

Ratio: 211
$1900 rent [craigslist]
http://sandiego.craigslist.org/csd/apa/1177473494.html
price[zillow]
$401,500 price [zillow]
http://www.zillow.com/homedetails/7462-Dancy-Rd-San-Diego-CA-92126/16834149_zpid/

And I thought the real estate bubble had burst in the non-high-end areas such as mira mesa. How come we’re not seeing ratios in the more reasonable 150 range?

[ybitz]

Even in Mira Mesa (definitely not high end), the ratio seems to be over 200.

Ratio: 217
$1860 rent [craigslist]
http://sandiego.craigslist.org/csd/ap/1177483541.html
$404,500 price[zillow]
http://www.zillow.com/homedetails/11559-Polaris-Dr-San-Diego-CA-92126/16819385_zpid/

Ratio: 211
$1900 rent [craigslist]
http://sandiego.craigslist.org/csd/apa/1177473494.html
price[zillow]
$401,500 price [zillow]
http://www.zillow.com/homedetails/7462-Dancy-Rd-San-Diego-CA-92126/16834149_zpid/

And I thought the real estate bubble had burst in the non-high-end areas such as mira mesa. How come we’re not seeing ratios in the more reasonable 150 range?

[ybitz]

Even in Mira Mesa (definitely not high end), the ratio seems to be over 200.

Ratio: 217
$1860 rent [craigslist]
http://sandiego.craigslist.org/csd/ap/1177483541.html
$404,500 price[zillow]
http://www.zillow.com/homedetails/11559-Polaris-Dr-San-Diego-CA-92126/16819385_zpid/

Ratio: 211
$1900 rent [craigslist]
http://sandiego.craigslist.org/csd/apa/1177473494.html
price[zillow]
$401,500 price [zillow]
http://www.zillow.com/homedetails/7462-Dancy-Rd-San-Diego-CA-92126/16834149_zpid/

And I thought the real estate bubble had burst in the non-high-end areas such as mira mesa. How come we’re not seeing ratios in the more reasonable 150 range?

[SandraL]

Excellent! Thank you.

Last question, average rent is figured by average rent on a HOUSE of the similar bed/bad configuration or APARTMENT?

I assume house, but you know what they say about assuming….

[SandraL]

Excellent! Thank you.

Last question, average rent is figured by average rent on a HOUSE of the similar bed/bad configuration or APARTMENT?

I assume house, but you know what they say about assuming….

[SandraL]

Excellent! Thank you.

Last question, average rent is figured by average rent on a HOUSE of the similar bed/bad configuration or APARTMENT?

I assume house, but you know what they say about assuming….

[SandraL]

Excellent! Thank you.

Last question, average rent is figured by average rent on a HOUSE of the similar bed/bad configuration or APARTMENT?

I assume house, but you know what they say about assuming….

[Author]

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