Will rents create a price floor despite the mini rental bubble?

[cv2]

Ren, is this perceived “very cash-flow-positive” or truely great opportunity? I am wondering, does the local economy have enough support for the rentals?

[quote=Ren]Look to Murrieta/Temecula to see the future of San Diego. Properties there are very cash-flow-positive, they’re being bought up by investors, and the rental market is being flooded. [/quote]

[Ren]

[quote=barnaby33]Ren, do you really see rents tanking on CL? Part of my problem with CL for sale listings is that since its free, usually the most unrealistic listings are posted there. Why not? Maybe you’ll find that one sucker.
[/quote]

I’ve been watching Murrieta and Temecula rents on CL for two years, and they are definitely dropping.

When I was looking on CL for a new place to rent myself last year, the owners I dealt with were all posting their actual asking rents, then choosing the renters based on job history and whether they “liked” them (and not so much on credit, since they were getting a lot of people with foreclosures).

[Ren]

[quote=barnaby33]Ren, do you really see rents tanking on CL? Part of my problem with CL for sale listings is that since its free, usually the most unrealistic listings are posted there. Why not? Maybe you’ll find that one sucker.
[/quote]

I’ve been watching Murrieta and Temecula rents on CL for two years, and they are definitely dropping.

When I was looking on CL for a new place to rent myself last year, the owners I dealt with were all posting their actual asking rents, then choosing the renters based on job history and whether they “liked” them (and not so much on credit, since they were getting a lot of people with foreclosures).

[Ren]

[quote=barnaby33]Ren, do you really see rents tanking on CL? Part of my problem with CL for sale listings is that since its free, usually the most unrealistic listings are posted there. Why not? Maybe you’ll find that one sucker.
[/quote]

I’ve been watching Murrieta and Temecula rents on CL for two years, and they are definitely dropping.

When I was looking on CL for a new place to rent myself last year, the owners I dealt with were all posting their actual asking rents, then choosing the renters based on job history and whether they “liked” them (and not so much on credit, since they were getting a lot of people with foreclosures).

[Ren]

[quote=barnaby33]Ren, do you really see rents tanking on CL? Part of my problem with CL for sale listings is that since its free, usually the most unrealistic listings are posted there. Why not? Maybe you’ll find that one sucker.
[/quote]

I’ve been watching Murrieta and Temecula rents on CL for two years, and they are definitely dropping.

When I was looking on CL for a new place to rent myself last year, the owners I dealt with were all posting their actual asking rents, then choosing the renters based on job history and whether they “liked” them (and not so much on credit, since they were getting a lot of people with foreclosures).

[Ren]

[quote=barnaby33]Ren, do you really see rents tanking on CL? Part of my problem with CL for sale listings is that since its free, usually the most unrealistic listings are posted there. Why not? Maybe you’ll find that one sucker.
[/quote]

I’ve been watching Murrieta and Temecula rents on CL for two years, and they are definitely dropping.

When I was looking on CL for a new place to rent myself last year, the owners I dealt with were all posting their actual asking rents, then choosing the renters based on job history and whether they “liked” them (and not so much on credit, since they were getting a lot of people with foreclosures).

[Ren]

[quote=cv2]Ren, is this perceived “very cash-flow-positive” or truely great opportunity? I am wondering, does the local economy have enough support for the rentals?
[/quote]

Good questions. I’m not jumping in, even though I’m seeing $500+/month positive cash flow in condos for a $40k investment (30% down). I just don’t think it’s a good idea to buy in spring whether the market is up or down (I don’t need the competition), I’m almost certain prices will not go up by this fall/winter, and I’m guessing prices have a little ways to go down (maybe 5-15% in Murrieta?).

I just have this little voice telling me that those $1,100 rents could be at $900 next year, so if I wait until winter and it knocks $10-$20k off the purchase price, it’s worth it. At least I know that I’m not making a bad decision by waiting.

[Ren]

[quote=cv2]Ren, is this perceived “very cash-flow-positive” or truely great opportunity? I am wondering, does the local economy have enough support for the rentals?
[/quote]

Good questions. I’m not jumping in, even though I’m seeing $500+/month positive cash flow in condos for a $40k investment (30% down). I just don’t think it’s a good idea to buy in spring whether the market is up or down (I don’t need the competition), I’m almost certain prices will not go up by this fall/winter, and I’m guessing prices have a little ways to go down (maybe 5-15% in Murrieta?).

I just have this little voice telling me that those $1,100 rents could be at $900 next year, so if I wait until winter and it knocks $10-$20k off the purchase price, it’s worth it. At least I know that I’m not making a bad decision by waiting.

[Ren]

[quote=cv2]Ren, is this perceived “very cash-flow-positive” or truely great opportunity? I am wondering, does the local economy have enough support for the rentals?
[/quote]

Good questions. I’m not jumping in, even though I’m seeing $500+/month positive cash flow in condos for a $40k investment (30% down). I just don’t think it’s a good idea to buy in spring whether the market is up or down (I don’t need the competition), I’m almost certain prices will not go up by this fall/winter, and I’m guessing prices have a little ways to go down (maybe 5-15% in Murrieta?).

I just have this little voice telling me that those $1,100 rents could be at $900 next year, so if I wait until winter and it knocks $10-$20k off the purchase price, it’s worth it. At least I know that I’m not making a bad decision by waiting.

[Ren]

[quote=cv2]Ren, is this perceived “very cash-flow-positive” or truely great opportunity? I am wondering, does the local economy have enough support for the rentals?
[/quote]

Good questions. I’m not jumping in, even though I’m seeing $500+/month positive cash flow in condos for a $40k investment (30% down). I just don’t think it’s a good idea to buy in spring whether the market is up or down (I don’t need the competition), I’m almost certain prices will not go up by this fall/winter, and I’m guessing prices have a little ways to go down (maybe 5-15% in Murrieta?).

I just have this little voice telling me that those $1,100 rents could be at $900 next year, so if I wait until winter and it knocks $10-$20k off the purchase price, it’s worth it. At least I know that I’m not making a bad decision by waiting.

[Ren]

[quote=cv2]Ren, is this perceived “very cash-flow-positive” or truely great opportunity? I am wondering, does the local economy have enough support for the rentals?
[/quote]

Good questions. I’m not jumping in, even though I’m seeing $500+/month positive cash flow in condos for a $40k investment (30% down). I just don’t think it’s a good idea to buy in spring whether the market is up or down (I don’t need the competition), I’m almost certain prices will not go up by this fall/winter, and I’m guessing prices have a little ways to go down (maybe 5-15% in Murrieta?).

I just have this little voice telling me that those $1,100 rents could be at $900 next year, so if I wait until winter and it knocks $10-$20k off the purchase price, it’s worth it. At least I know that I’m not making a bad decision by waiting.

[carlsbadworker]

[quote=Ren]
I’ve been watching Murrieta and Temecula rents on CL for two years, and they are definitely dropping.

When I was looking on CL for a new place to rent myself last year, the owners I dealt with were all posting their actual asking rents, then choosing the renters based on job history and whether they “liked” them (and not so much on credit, since they were getting a lot of people with foreclosures).
[/quote]

I concur with the findings. However, I would caution the use of “rental bubble”. I don’t see that we have a rental bubble here in Temecula, instead I see the current rental price as the depressed price.

Reason? According to the Husing Report, in 2003 (I couldn’t find an earlier report), the average monthly apartment rental rate was $986. As for last year this time, it was $1176. So the yearly increase is about 3.6%. This is almost inline with inflation, which is also roughly inline with the local wage increase.

So the rents may be a little bit higher than they should be but it was definitely not in the bubble state.

[carlsbadworker]

[quote=Ren]
I’ve been watching Murrieta and Temecula rents on CL for two years, and they are definitely dropping.

When I was looking on CL for a new place to rent myself last year, the owners I dealt with were all posting their actual asking rents, then choosing the renters based on job history and whether they “liked” them (and not so much on credit, since they were getting a lot of people with foreclosures).
[/quote]

I concur with the findings. However, I would caution the use of “rental bubble”. I don’t see that we have a rental bubble here in Temecula, instead I see the current rental price as the depressed price.

Reason? According to the Husing Report, in 2003 (I couldn’t find an earlier report), the average monthly apartment rental rate was $986. As for last year this time, it was $1176. So the yearly increase is about 3.6%. This is almost inline with inflation, which is also roughly inline with the local wage increase.

So the rents may be a little bit higher than they should be but it was definitely not in the bubble state.

[carlsbadworker]

[quote=Ren]
I’ve been watching Murrieta and Temecula rents on CL for two years, and they are definitely dropping.

When I was looking on CL for a new place to rent myself last year, the owners I dealt with were all posting their actual asking rents, then choosing the renters based on job history and whether they “liked” them (and not so much on credit, since they were getting a lot of people with foreclosures).
[/quote]

I concur with the findings. However, I would caution the use of “rental bubble”. I don’t see that we have a rental bubble here in Temecula, instead I see the current rental price as the depressed price.

Reason? According to the Husing Report, in 2003 (I couldn’t find an earlier report), the average monthly apartment rental rate was $986. As for last year this time, it was $1176. So the yearly increase is about 3.6%. This is almost inline with inflation, which is also roughly inline with the local wage increase.

So the rents may be a little bit higher than they should be but it was definitely not in the bubble state.

[carlsbadworker]

[quote=Ren]
I’ve been watching Murrieta and Temecula rents on CL for two years, and they are definitely dropping.

When I was looking on CL for a new place to rent myself last year, the owners I dealt with were all posting their actual asking rents, then choosing the renters based on job history and whether they “liked” them (and not so much on credit, since they were getting a lot of people with foreclosures).
[/quote]

I concur with the findings. However, I would caution the use of “rental bubble”. I don’t see that we have a rental bubble here in Temecula, instead I see the current rental price as the depressed price.

Reason? According to the Husing Report, in 2003 (I couldn’t find an earlier report), the average monthly apartment rental rate was $986. As for last year this time, it was $1176. So the yearly increase is about 3.6%. This is almost inline with inflation, which is also roughly inline with the local wage increase.

So the rents may be a little bit higher than they should be but it was definitely not in the bubble state.

[Author]

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