Where is rent headed?

[waitingpatiently]

Nostra-

We are also looking into buying a rental. FWIW, we are looking in Vista and I have found there to be a lot of rentals available on craigslist. In one community (Moncado Springs, next to costco) that we rented in last year, it took us 2 months for a rental to become available. Last night I looked on craigslist and there are 4 available. And the development we live in currently in South Carlsbad has 4 houses also for rent (it’s not a big developement). I don’t know if it’s the season…just some more to think about (as if there wasn’t enough 🙂 )

[nostradamus]

Thanks waitingpatiently.

I did an informal kind of poll: There’s one particular condo I’m looking at which will be slightly more than break-even; that is, it will cash flow slightly positive if my calculations are correct.

So I went over there, and I fortunately saw one of the neighbors walking around outside. I chatted her up and found out she’s renting for a few hundred dollars more than what I’m targeting. She also said she felt lucky to have gotten this deal on the place and that she shopped around a lot before finding it. She kindly gave me the address of the unit she’s renting, and I looked it up to find what it last sold for. It sold last year for $100k MORE than the asking price of the unit I’m looking at! Those landlords are definitely not flowing positive, even though they’re charging more rent. I also ran into another neighbor, a couple, they weren’t as informative but did tell me they were renters and paying about what I’m going to charge, but they are in a smaller, downstairs unit (I’m looking at an upstairs one).

Another thing I did, of course, was look at craigslist. There is only one other place for rent in that complex and they’re asking for more than what I’d ask for. Their unit is also downstairs and not as nice and in a worse location.

My conclusion from the hunting expedition is that if I can get the sale price I want (which I think is a fair price) then I’m going for it. My only worry is if rents go down, although I have some margin to work with.

Renters: do you prefer upstairs units or downstairs? I know moving furniture is a pain if you’re upstairs, but once you’re in I hope: a) you won’t move out, and b) you enjoy not hearing your neighbors walking around above you.

I always rented upstairs for the latter reason.

[nostradamus]

Thanks waitingpatiently.

I did an informal kind of poll: There’s one particular condo I’m looking at which will be slightly more than break-even; that is, it will cash flow slightly positive if my calculations are correct.

So I went over there, and I fortunately saw one of the neighbors walking around outside. I chatted her up and found out she’s renting for a few hundred dollars more than what I’m targeting. She also said she felt lucky to have gotten this deal on the place and that she shopped around a lot before finding it. She kindly gave me the address of the unit she’s renting, and I looked it up to find what it last sold for. It sold last year for $100k MORE than the asking price of the unit I’m looking at! Those landlords are definitely not flowing positive, even though they’re charging more rent. I also ran into another neighbor, a couple, they weren’t as informative but did tell me they were renters and paying about what I’m going to charge, but they are in a smaller, downstairs unit (I’m looking at an upstairs one).

Another thing I did, of course, was look at craigslist. There is only one other place for rent in that complex and they’re asking for more than what I’d ask for. Their unit is also downstairs and not as nice and in a worse location.

My conclusion from the hunting expedition is that if I can get the sale price I want (which I think is a fair price) then I’m going for it. My only worry is if rents go down, although I have some margin to work with.

Renters: do you prefer upstairs units or downstairs? I know moving furniture is a pain if you’re upstairs, but once you’re in I hope: a) you won’t move out, and b) you enjoy not hearing your neighbors walking around above you.

I always rented upstairs for the latter reason.

[nostradamus]

Thanks waitingpatiently.

I did an informal kind of poll: There’s one particular condo I’m looking at which will be slightly more than break-even; that is, it will cash flow slightly positive if my calculations are correct.

So I went over there, and I fortunately saw one of the neighbors walking around outside. I chatted her up and found out she’s renting for a few hundred dollars more than what I’m targeting. She also said she felt lucky to have gotten this deal on the place and that she shopped around a lot before finding it. She kindly gave me the address of the unit she’s renting, and I looked it up to find what it last sold for. It sold last year for $100k MORE than the asking price of the unit I’m looking at! Those landlords are definitely not flowing positive, even though they’re charging more rent. I also ran into another neighbor, a couple, they weren’t as informative but did tell me they were renters and paying about what I’m going to charge, but they are in a smaller, downstairs unit (I’m looking at an upstairs one).

Another thing I did, of course, was look at craigslist. There is only one other place for rent in that complex and they’re asking for more than what I’d ask for. Their unit is also downstairs and not as nice and in a worse location.

My conclusion from the hunting expedition is that if I can get the sale price I want (which I think is a fair price) then I’m going for it. My only worry is if rents go down, although I have some margin to work with.

Renters: do you prefer upstairs units or downstairs? I know moving furniture is a pain if you’re upstairs, but once you’re in I hope: a) you won’t move out, and b) you enjoy not hearing your neighbors walking around above you.

I always rented upstairs for the latter reason.

[nostradamus]

Thanks waitingpatiently.

I did an informal kind of poll: There’s one particular condo I’m looking at which will be slightly more than break-even; that is, it will cash flow slightly positive if my calculations are correct.

So I went over there, and I fortunately saw one of the neighbors walking around outside. I chatted her up and found out she’s renting for a few hundred dollars more than what I’m targeting. She also said she felt lucky to have gotten this deal on the place and that she shopped around a lot before finding it. She kindly gave me the address of the unit she’s renting, and I looked it up to find what it last sold for. It sold last year for $100k MORE than the asking price of the unit I’m looking at! Those landlords are definitely not flowing positive, even though they’re charging more rent. I also ran into another neighbor, a couple, they weren’t as informative but did tell me they were renters and paying about what I’m going to charge, but they are in a smaller, downstairs unit (I’m looking at an upstairs one).

Another thing I did, of course, was look at craigslist. There is only one other place for rent in that complex and they’re asking for more than what I’d ask for. Their unit is also downstairs and not as nice and in a worse location.

My conclusion from the hunting expedition is that if I can get the sale price I want (which I think is a fair price) then I’m going for it. My only worry is if rents go down, although I have some margin to work with.

Renters: do you prefer upstairs units or downstairs? I know moving furniture is a pain if you’re upstairs, but once you’re in I hope: a) you won’t move out, and b) you enjoy not hearing your neighbors walking around above you.

I always rented upstairs for the latter reason.

[nostradamus]

Thanks waitingpatiently.

I did an informal kind of poll: There’s one particular condo I’m looking at which will be slightly more than break-even; that is, it will cash flow slightly positive if my calculations are correct.

So I went over there, and I fortunately saw one of the neighbors walking around outside. I chatted her up and found out she’s renting for a few hundred dollars more than what I’m targeting. She also said she felt lucky to have gotten this deal on the place and that she shopped around a lot before finding it. She kindly gave me the address of the unit she’s renting, and I looked it up to find what it last sold for. It sold last year for $100k MORE than the asking price of the unit I’m looking at! Those landlords are definitely not flowing positive, even though they’re charging more rent. I also ran into another neighbor, a couple, they weren’t as informative but did tell me they were renters and paying about what I’m going to charge, but they are in a smaller, downstairs unit (I’m looking at an upstairs one).

Another thing I did, of course, was look at craigslist. There is only one other place for rent in that complex and they’re asking for more than what I’d ask for. Their unit is also downstairs and not as nice and in a worse location.

My conclusion from the hunting expedition is that if I can get the sale price I want (which I think is a fair price) then I’m going for it. My only worry is if rents go down, although I have some margin to work with.

Renters: do you prefer upstairs units or downstairs? I know moving furniture is a pain if you’re upstairs, but once you’re in I hope: a) you won’t move out, and b) you enjoy not hearing your neighbors walking around above you.

I always rented upstairs for the latter reason.

[EconProf]

Nostradamus: You were wise to walk the neighborhood and talk to residents.
This is the single most important and most overlooked way for buyers to learn quickly about the huge decision they are considering. You will invariably pick up usefull information no broker will tell you–about rents, physical defects, demographics (ahem), crime incidents, trends of all sorts. Plus, you may be pleasantly surprised (or not) to meet the next door neighbor in advance.

[EconProf]

Nostradamus: You were wise to walk the neighborhood and talk to residents.
This is the single most important and most overlooked way for buyers to learn quickly about the huge decision they are considering. You will invariably pick up usefull information no broker will tell you–about rents, physical defects, demographics (ahem), crime incidents, trends of all sorts. Plus, you may be pleasantly surprised (or not) to meet the next door neighbor in advance.

[EconProf]

Nostradamus: You were wise to walk the neighborhood and talk to residents.
This is the single most important and most overlooked way for buyers to learn quickly about the huge decision they are considering. You will invariably pick up usefull information no broker will tell you–about rents, physical defects, demographics (ahem), crime incidents, trends of all sorts. Plus, you may be pleasantly surprised (or not) to meet the next door neighbor in advance.

[EconProf]

Nostradamus: You were wise to walk the neighborhood and talk to residents.
This is the single most important and most overlooked way for buyers to learn quickly about the huge decision they are considering. You will invariably pick up usefull information no broker will tell you–about rents, physical defects, demographics (ahem), crime incidents, trends of all sorts. Plus, you may be pleasantly surprised (or not) to meet the next door neighbor in advance.

[EconProf]

Nostradamus: You were wise to walk the neighborhood and talk to residents.
This is the single most important and most overlooked way for buyers to learn quickly about the huge decision they are considering. You will invariably pick up usefull information no broker will tell you–about rents, physical defects, demographics (ahem), crime incidents, trends of all sorts. Plus, you may be pleasantly surprised (or not) to meet the next door neighbor in advance.

[nostradamus]

BobS I agree, going there was much more fruitful than seeing it online. Now I know exactly what the place looks like (much better than the photos). I know it’s a very dog friendly neighborhood where people actually pick up after their dogs, the plumbing is copper pipes, the place is well-maintained inside and out, the neighbors are working professionals and there was no junk or external clutter, it was sheltered from any road noise, the bedroom windows overlook a canyon to the east and can enjoy a nice sunrise, and people enjoy living there. Some of the people I spoke with have been living there for years. There is an Iranian man living next door on one side and an American couple on the other side, downstairs is an Indian couple, there’s another Iranian couple next to them, there’s a bmw-driving white lady with a Yorkie, there’s a friendly couple with a big shelter mutt, and through an open window I could hear someone playing the harp. There were no children or toys whatsoever near the unit, but near the well-maintained pool area there were three dads with their toddlers. I couldn’t get much of this info online but all of it has helped in my decision.

[nostradamus]

BobS I agree, going there was much more fruitful than seeing it online. Now I know exactly what the place looks like (much better than the photos). I know it’s a very dog friendly neighborhood where people actually pick up after their dogs, the plumbing is copper pipes, the place is well-maintained inside and out, the neighbors are working professionals and there was no junk or external clutter, it was sheltered from any road noise, the bedroom windows overlook a canyon to the east and can enjoy a nice sunrise, and people enjoy living there. Some of the people I spoke with have been living there for years. There is an Iranian man living next door on one side and an American couple on the other side, downstairs is an Indian couple, there’s another Iranian couple next to them, there’s a bmw-driving white lady with a Yorkie, there’s a friendly couple with a big shelter mutt, and through an open window I could hear someone playing the harp. There were no children or toys whatsoever near the unit, but near the well-maintained pool area there were three dads with their toddlers. I couldn’t get much of this info online but all of it has helped in my decision.

[nostradamus]

BobS I agree, going there was much more fruitful than seeing it online. Now I know exactly what the place looks like (much better than the photos). I know it’s a very dog friendly neighborhood where people actually pick up after their dogs, the plumbing is copper pipes, the place is well-maintained inside and out, the neighbors are working professionals and there was no junk or external clutter, it was sheltered from any road noise, the bedroom windows overlook a canyon to the east and can enjoy a nice sunrise, and people enjoy living there. Some of the people I spoke with have been living there for years. There is an Iranian man living next door on one side and an American couple on the other side, downstairs is an Indian couple, there’s another Iranian couple next to them, there’s a bmw-driving white lady with a Yorkie, there’s a friendly couple with a big shelter mutt, and through an open window I could hear someone playing the harp. There were no children or toys whatsoever near the unit, but near the well-maintained pool area there were three dads with their toddlers. I couldn’t get much of this info online but all of it has helped in my decision.

[nostradamus]

BobS I agree, going there was much more fruitful than seeing it online. Now I know exactly what the place looks like (much better than the photos). I know it’s a very dog friendly neighborhood where people actually pick up after their dogs, the plumbing is copper pipes, the place is well-maintained inside and out, the neighbors are working professionals and there was no junk or external clutter, it was sheltered from any road noise, the bedroom windows overlook a canyon to the east and can enjoy a nice sunrise, and people enjoy living there. Some of the people I spoke with have been living there for years. There is an Iranian man living next door on one side and an American couple on the other side, downstairs is an Indian couple, there’s another Iranian couple next to them, there’s a bmw-driving white lady with a Yorkie, there’s a friendly couple with a big shelter mutt, and through an open window I could hear someone playing the harp. There were no children or toys whatsoever near the unit, but near the well-maintained pool area there were three dads with their toddlers. I couldn’t get much of this info online but all of it has helped in my decision.

[Author]

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