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March 1, 2012 at 1:57 PM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #739042March 1, 2012 at 10:30 AM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #739031
an
Participant[quote=flu][quote=Wah-Wah][quote=flu]
WW, let me send you a PM… I don’t like to explain stuff to people who don’t want to at least analyze things objectively…[/quote]thanks flu, great info. I’m gonna chew on that info for a little while 🙂
it seems to pencil out nicely with apt/condo. What do you think regarding SFH? For example, the house in the OP, the number seems barely even so its price needs to come down a little more for it to be a cash flow investment?
Would love to hear your (or anybody) opinion.
thanks[/quote]Wahwah… I would contact AN via PM about SFH. Honestly, I would be blowing smoke if said I knew a lot about SFH in MM, because like I mentioned before I’m really not a Mira Mesa expert here. AN probably has a much better pulse on SFH and on Mira Mesa in general. And honestly, I haven’t been looking whole-heartedly on SFH in MM as an rental…I’m not yet ready to commit to dealing with a SFH rental in San Diego yet. I ran some quick numbers some SFH MM that some other realtor friends sent me. For me, it was hard to get it to pencil out as rental right now, but I had much less parameters to work with.
The issue is that I really don’t want to buy a place outright. What I really want to do is use as much cheap loans the government is throwing at us….So the best solution I found for me was to either cash-out refinance my primary or taking out a Heloc, which I found would give me the best rates. If I get an investment loan alone, there’s surcharges for that. If it’s a loan lower than $150k, there’s surcharges for that…And so forth….It wouldn’t pencil out so well if I actually had to get a standalone loan for the place.
So this is only possible right now because of the rental prices and because of access to cheap loans that I have because of my (not bragging) excellant credit… That’s why I stopped complaining about all those government bailouts and loan mods… Can’t beat the system, join it…[/quote]
Condos in MM are penciling out, 1/1 more so than 2/2, but SFR are either breaking even or slight better (to buy with 20% down, depending on the house and area). So it’s definitely not as good of deal for investor (landlord), but as a primary resident, I think it’s a decent deal. To me, anytime PITI is less than comparable rent, it’s a decent deal for primary resident. If you must stick w/ SFR and MM, there are some older 2100-2200 sq-ft houses on the north east side of MM that are currently penciling out better. They’re going for mid $300k right now and those can rent for around $2200/month.February 29, 2012 at 5:41 PM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738976ParticipantTalking about cashflow 1/1 in MM, here are some:
http://www.sdlookup.com/MLS-120008725-8594_Summerdale_Rd_164_San_Diego_CA_92126 – This one can rent for around $1100.
http://www.sdlookup.com/MLS-110061460-92126 – This one can rent for around $1000.
http://www.sdlookup.com/MLS-110033223-8534_Summerdale_Rd_82_San_Diego_CA_92126 – This one can rent for around $1100.You can do the math.
February 29, 2012 at 5:35 PM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738974Participant[quote=flu][quote=sdrealtor]doh[/quote]
Un-doh that.
What you posted was interesting.[/quote]
Damn, I missed it. That’s what I get for being in a meeting.February 29, 2012 at 1:30 PM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738936ParticipantBG, lets take a step back and see what you said:
[quote=bearishgurl]Fundamentally, there is no reason for a 1980’s MM tract home to cost $400K+.[/quote]
This Bannister house was built in the 80s. So, you might say now that you’re not referring to the Bannister house, but it sounded like you did originally. Which is what flu and I are talking about, wrt to buying it for $300k. This house is not abutting to MM Blvd. It’s separated from MM Blvd. by a street and other house.
Most of MM are still in the $300k. So, they’re still available for FT homebuyers. However, this house is not for FT home buyers, unless you can come up with the cash.
Those three houses should sell for low $300k.
WRT rent, yes, that’s the going rate for an apartment in MM. If you’re talking about 1/1 with a garage, you have to go much higher than that.
February 29, 2012 at 11:25 AM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738919Participant[quote=Wah-Wah]AN, thanks for the break down. Got to admit that I am no MM expert ( what’s up with the “insider joke” ? )
So, your point is these above are overpriced at least by 20-30%? If this is the case, would you agree that the house in OP post is somewhat overprice?btw, it’s not 10% +/- lost, don’t forget 6% commission + other cost.[/quote]
I didn’t say those property are overpriced. I didn’t say they’re underpriced either. I was just giving the comparison between the properties you listed and the Banister house. I was trying to say, if the Banister house ever sell for $300k, then the properties you listed would/should be selling for low to mid $200k. I already said earlier in the thread that at low $400k, it’s a decent deal. At $300k, it would be a flaming deal (assuming today’s interest), considering it can probably rent for ~$2200/month.February 29, 2012 at 9:51 AM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738908Participant[quote=SD Realtor]Good thing there are some Mira Mesa experts here. I forgot is that one of those far flung areas as well? AN do you need to take the train to work?[/quote]
Nah, I’m in the ultra boony. The train doesn’t even get here. I have to take the bus.February 29, 2012 at 9:50 AM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738907Participant[quote=Wah-Wah][quote=AN][quote=flu]
BG, please help me find a comparable home in MM for $300k. If you’re successful, and I’d be happy to pay you 4% commission when I close :)[/quote]
I’ll one up you and would be willing to pay 5% commission, just for that would be fantastic deal :-D.[/quote]okay, I’m not BG but what about these?
http://www.redfin.com/CA/San-Diego/7874-Embry-Pt-92126/home/4857970
http://www.redfin.com/CA/San-Diego/7742-Flanders-Dr-92126/home/6282639
http://www.redfin.com/CA/San-Diego/7952-Goleta-Rd-92126/home/6398607%5B/quote%5D
Those are not even close to the same league. If you know MM, you’ll know they’re not. Let me break it down.Embry – small, old, not-updated. Original house was ~1200 sq-ft and they added a 300 sq-ft family room. If the Banister house and its direct comp sell for $300k, I expect this house to sell in the low to mid $200k.
Flanders – Have you driven on Flanders? You DO NOT want to be on that street. That alone would be a good reason why it sold at the price it did. Look at its 2003 sold price. You’ll see that because of its location, the discount has always been there. Again, if the Banister like property sell for $300k, I wouldn’t touch this one unless it’s in the low to mid $200k.
Goleta – Same explanation as Embry. I would expect this house to sell in the low to mid $200k as well, if houses like Banister sell for $300k.
February 29, 2012 at 8:36 AM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738901Participant[quote=flu][quote=bearishgurl][quote=SD Realtor] . . . The people who bought it went FHA and then lost it… surprise surprise.[/quote]
I’ve always maintained that the maximum FHA loan should be no more than $300K in this region. The FHA 1-4 unit purchase program was originally put in place to serve first-time and/or moderate income buyers but has been used for move-up and luxury purchases in recent years because of inflated unrealistic caps.
I believe that at least half of MM (older half) fits this description but has been run up in price in recent years by too-high FHA and VA financing caps, as well as sub-prime money. Fundamentally, there is no reason for a 1980’s MM tract home to cost $400K+.[/quote]
BG, please help me find a comparable home in MM for $300k. If you’re successful, and I’d be happy to pay you 4% commission when I close :)[/quote]
I’ll one up you and would be willing to pay 5% commission, just for that would be fantastic deal :-D.February 29, 2012 at 12:15 AM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738885Participant[quote=blake]The monthly payment is okay, but coming up with 80K down payment for entry level engineers might be a bit tough.[/quote]
Might be tough for entry level engineers, but not that tough for engineers with 5-7 years experience. If you graduate at 22, 5-7 years experience mean you’re around 27-29. That’s still quite young. I don’t think anyone is saying it’s easy for a 22-25 year old to be able to save 80k. If you have a pair of engineers, saving $2k/month combined, that’s $24k/year. So, after 4 years, you’ll have more than $80k to down. Is it that tough to save $2k/month for dual income couple?February 28, 2012 at 4:23 PM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738867Participant[quote=Wah-Wah]street noise or power line : http://www.redfin.com/CA/San-Diego/10774-Penara-St-92126/home/4596173
:)[/quote]
I’d take street noise (to a certain extent). I’ve lived closer to MM Blvd. before, so this one wouldn’t bother me one bit.February 28, 2012 at 1:31 PM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738856Participant[quote=bearishgurl][quote=EmilyHicks]200 feet from back yard to MM Blvd.[/quote]
If this property is slightly elevated (20-30′) from MM Blvd, then it no doubt has a tremendous echo from the road.[/quote]
It’s not elevated at all. It’s either flat or below MM Blvd. Everyone have different tolerance of noise. I grew up living about that distance to Blvd but at a higher elevation. We had many summer dinners outside and we weren’t bothered by it at all.February 28, 2012 at 1:26 PM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738857Participant[quote=bearishgurl]Fundamentally, there is no reason for a 1980’s MM tract home to cost $400K+.[/quote]
What fundamentals are you referring to? Inquiring mind like to know.February 28, 2012 at 7:56 AM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738833Participant[quote=desmond]Whatever the reason for selling this house, guessing why it is being sold is just guessing, buying in a declining market is very risky. Of course investors are out trying to buy distressed sales at “bargain basement prices”. The non-distressed sellers really have no choice and will have to hang on and “wait for better prices”.[/quote]
Totally agree. This is exactly what they’re doing. Just look at the inventory number. Some tracts within MM have nothing for sale, so you can’t buy one even if you wanted to.February 27, 2012 at 8:37 PM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738809ParticipantDid I hear someone call my name? :-D. It’s in line with what I’m seeing throughout MM in the last few months. Like sdr mentioned in another thread, it was pretty flat for most of the last year, but in the last 2-3 months or so, I see a big decline (5-10%). I wonder where it’ll go from here.
This house can probably rent for $2200/month. PITI for this house at this price ~$2000/month (assume 20% down). So, it’s a decent deal.
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