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bearishgurl
Participant[quote=AN][quote=bearishgurl]I digress. There was little or nothing built on the land from I-805 to the west, which was part of MM, until the last few years. The area IS part of the City (MM) but has only recently been developed.[/quote]Seriously BG, do some research before you speak. The 92121 part of Mira Mesa has been built out for 15 years. Is 15 years now the new “last few years”? Most of Calle Cristobal was built over 20 years ago.[/quote]
AN, of course you know that 92121 is Sorrento Mesa/Valley, NOT MM (92126). Regardless of any SFR tracts built on Calle Cristobal, the development(s) that FIH is referring to is relatively new, as are those nearby “spec-home” monstrosities that we’ve discussed here a few times.
[quote=AN][quote=bearishgurl]Here in South County, the vast majority of condos have at least a std one-car garage and most have a two-car garage. I guess that’s the difference in congestion levels due to zoning differences between MM and Chula Vista (and surrounds). Garages and storage space (which they would have to pay dearly for at a self-storage biz) are very important to tenants. Especially if they have a pricey vehicle which could easily get hit, scratched or vandalized while parked in a condo parking lot.[/quote]
What you’re describing in South County is the exactly reason why there are a demographic difference between the area. What’s important to those who live in South County doesn’t necessary be what’s important to those who live in Mira Mesa. You can’t take your South County view point and apply to other areas.[/quote]Of course, any tenant would prefer a garage to park in or store things in over not having one. AN, I don’t know if you are old enough to remember, but for about 15 years (1984ish to 1999), the UTC pkg lot was the SD County capitol of auto theft and auto vandalism. MM had (and still has?) more car-alarm installation businesses and “chop shops” than anyplace else in the county. Why?? Favorable zoning for those types of biz and having a “captive audience” for their services. Go figure.
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I don’t buy FIH’s statement that there aren’t any rentals to choose from in UTC (northern part of 92122) when UTC area has primarily ALL multifamily units (all or nearly all with garages, I might add). UTC area IS competition for MM rentals but they are generally bigger (often MUCH bigger), have inside or garage laundry areas and have garages. Thus, the rents there are generally higher than MM but nevertheless, they are competition to MM’s rental units for the same tenant-applicant pool.
[quote=AN][quote=bearishgurl]Although some seem to do it, I agree that South County is too far for most workers to drive RT daily to Sorrento Valley/Mesa to work. That is the ONLY REASON why Chula V’s asking prices for starter SFRs seem to be lower than those in other, closer areas to major job centers. They are NOT lesser houses, lesser neighborhoods or somehow have lesser-intelligent or poorer residents living there than do rentals in other parts of the county. When one looks at the price of mid-level, executive and luxury housing in South County, most of it is every bit as expensive as that in other parts of the county. This is because this type of housing isn’t usually used as a rental.[/quote]I hope you know that you’re contradicting yourself in this paragraph. The distance IS one of the reason why the demographics are different. Because the demographic is different, the rest kinda explain itself. If you prefer to rent to professionals, either fresh grads or H1B working at Qualcomm, then you wouldn’t be buying in Chula Vista. You’ll be buying where they want to live, which is Mira Mesa. The demographic is the way it is. Deal with it. We’re talking about $400k rentals here, not some mansions. Those who rent a $400k rental are not the same type of people who buy executive & luxury housing in South County.[/quote]
Again, the “professionals” you speak of are only the ones that need or wish to be near certain firms. I’m sure you’re aware that there are many other types of “professionals” which exist in the real world who do not work at Qualcomm. The only way the (rental) demographic is different in your area than South County is the possible difference in occupation. This in no way means that professionals who do not work in high-tech are somehow lesser-intelligent, poorer or don’t have the same housing expectations that high-tech professionals do. They have a different type of job and that is as far as the differences go.
If you feel the “demographic is different” between MM and South County and the difference is not due to intelligence, household income or amount of “professionals” residing in each area, then please let us all know here why you think so.
I’m waiting with bated breath 🙂
Participant[quote=AN][quote=bearishgurl]No, FIH has stated here in so many words that he “suspects” tenant-applicants in South County to somehow be “lesser-qualified” than the tenants he is used to dealing with (up north?).
I’m just putting this ridiculous assumption to rest as nothing could be further from the truth.
[/quote]You’re responding to me about a point that I didn’t make? I don’t care how many section 8 there area. I do care who are the majority renters.[/quote]My point is/was that “poor people” and otherwise “unqualified” renters (without a subsidy) reside almost everywhere in the county. I used your preference example because I have heard those same three communities espoused as “preferred communities” to purchase rental investments in elsewhere on this blog and have also repeatedly read here over the years that posters felt rental applicants applying for housing south of I-8 were somehow “lesser qualified” than those applying north of I-8. Obviously, they’re misinformed. (ex: FIH admitted here that he hasn’t visited Chula Vista yet and he’s “typical” of those previous posters.) It’s all BS. It has nothing to do with high-tech jobs. Only a fraction of SD County tenants work in high tech (I don’t know what that fraction is, but it’s the minority). Yes, it’s even a minority of “single” tenants.
I’m sure you’re aware that a “professional” isn’t necessarily a high-tech worker.
Your re-mention of this preference today was convenient for me to use. It was nothing personal aimed at you, AN.
Participantflu, instead of taking up bandwidth, why don’t you explain yourself a little better?
October 11, 2013 at 12:44 PM in reply to: OT: And you thought public employee unions were out of hand #766710Participant[quote=Leorocky] . . . Our government has required that employers bargain with unions – based on everything you’ve said so far it sounds like you’d agree this is anti “free market”? Now if people came to Walmart to see Dick, Jane and Harry or if those employees were somehow vital to Wal-Mart’s success you’d see Walmart bending over backwards to keep them happy – same thing you see with more skilled and highly skilled workers. . . [/quote]
Yes, Leorocky, these laws have been in place for many decades at the Federal, state and even local levels.
Have you contacted your representative(s) to find out if any of them are amenable to rewriting and introducing legislation to their brethren to modify/repeal the provisions currently on the books which you do not agree with?
If you have, what did they tell you?
If not, then why are you complaining here on this forum to an audience who doesn’t have the power to fix this for you?
You’re beginning to sound like you have “union envy,” like so many posters before you.
Participant[quote=AN][quote=bearishgurl]AN, you may already be aware that the PQ/RB area that you prefer so much to invest in has hundreds and possibly well over 1000 households in residence which are using Section 8 vouchers for the bulk of their rent. There are many LL’s in 92128/92129 who accept Section 8, and PQ, in particular is FULL of low-income families (92128 has more low-income, often disabled singles). To a lesser extent, the same is true of MM. [/quote]What’s your point? Are you trying to say those are the only tenants looking in those areas?[/quote]
No, FIH has stated here in so many words that he “suspects” tenant-applicants in South County to somehow be “lesser-qualified” than the tenants he is used to dealing with (up north?).
I’m just putting this ridiculous assumption to rest as nothing could be further from the truth.
[quote=FlyerInHi]Ok, BG, thanks for the links. I’ll have to check out Chula Vista one of these days when I have time. I personally wouldn’t live in those houses… but that’s just me.
I also think the quality of the tenants is different down there. I know the color of money is always green, but I don’t want the tenants calling me to tell me work is slow, or their kids need braces, or their car needs repairs, so they’ll pay me late.
Another teeny weeny point… those houses are in Chula Vista, not in San Diego. ..[/quote]
Participant[quote=AN][quote=bearishgurl]I looked on the map and Calle Cristobal in this area appears to be part of the portion which was annexed to MM in recent years. I also noticed that the neither of the listings (sale and rental) for both of your suggestions (in the same complex?) have garages. The rental listing states two parking spaces (uncovered?). $1800 month is a LOT TO PAY to live in a traincar apt. I’m curious what the average length of tenancy is there at that rental price point.[/quote]Seriously BG, you should stop spouting opinion as fact. Mira Mesa did not annex Calle Cristobal. Mira Mesa community since its inception has the boundary of 805 to the West, 15 to the East, Lopez Canyon to the North, and Miramar to the South. You can do your own research if you don’t believe me. BTW, looking on the map is not research.
BTW, what’s the point of bringing up the fact that a condo doesn’t have garage? Majority of the condos out there doesn’t have a garage. What’s your point? Some people rather to live in a traincar near work than in a house in the boonies far away from work.[/quote]
I digress. There was little or nothing built on the land from I-805 to the west, which was part of MM, until the last few years. The area IS part of the City (MM) but has only recently been developed.
Here in South County, the vast majority of condos have at least a std one-car garage and most have a two-car garage. I guess that’s the difference in congestion levels due to zoning differences between MM and Chula Vista (and surrounds). Garages and storage space (which they would have to pay dearly for at a self-storage biz) are very important to tenants. Especially if they have a pricey vehicle which could easily get hit, scratched or vandalized while parked in a condo parking lot.
Although some seem to do it, I agree that South County is too far for most workers to drive RT daily to Sorrento Valley/Mesa to work. That is the ONLY REASON why Chula V’s asking prices for starter SFRs seem to be lower than those in other, closer areas to major job centers. They are NOT lesser houses, lesser neighborhoods or somehow have lesser-intelligent or poorer residents living there than do rentals in other parts of the county. When one looks at the price of mid-level, executive and luxury housing in South County, most of it is every bit as expensive as that in other parts of the county. This is because this type of housing isn’t usually used as a rental.
Participantflu states that, realistically, current rents for a 1/1 in MM are $1250 to $1400 mo. FIH states that his pie-in-the-sky rent for a 1/1 in MM is $1800. I would say that if he COULD get someone to pay that in MM for a 1/1 (esp w/no carport or garage), then they would likely move out in 6-9 mos as soon as they found a better deal.
There’s a LOT of difference between those two rental price points.
And exsdgal, the extra $600 showing on your tax bill is due to charges for local services in your area as well as any voter-approved bonds. These SAME charges are ALSO present on condo-owners’ tax bills in your immediate area over and above any HOA dues they have to pay. Every property owner in a given micro area pays the same on these charges regardless of the square footage of their dwelling or whether or not they actually “own” any land or just a fractional interest of a building.
And flu, in the “college area,” YOU, as a LL, can get 9-10 months of UP-FRONT rent from each student’s (out-of-county/state) parent(s) whom you rent to PRIOR to the beginning of the fall semester (August). This also applies to condos around USD and UCSD. I’ve seen this done time and time again with agents whom I worked with who bought condos for their kids to live in while attending college. The parents of these students expect this because that is how an on-campus dorm is paid for. It is typical to include all utilities in the rent and for each student to have their own bdrm (and poss share a bath w/one other student-tenant). This is MUCH better and more economical than a dorm because the students have more privacy and can prepare their own meals while home instead of paying $375 – $500 mo for a “meal ticket” which they are not always present on campus to use regularly. A “college-area” house or condo is often a really good investment but requires a bit more mgmt than renting to a non-student household.
Those houses in Chula Vista which I posted links to do NOT generally attract lesser-qualified tenants than other those in other areas of in the county. A landlord will get tenant applicants who can’t manage their incomes in ALL zip codes … that is, even those tenants who passed muster upon application will choose their iphone bill, cable bill, car payment, kid’s braces, etc over paying timely rent one or more months when push comes to shove. Just because a tenant may be single and a “condo dweller” in no way implies that they aren’t a parent who has obligations to their child(ren) or aren’t a spendthrift.
Tenants who successfully secured a rental house to live close to relatives for childcare purposes have a high motivation to keep that house … and … in any case, they have well-established relatives nearby to possibly help them out financially if they get into a jam. This is just something to keep in mind.
I’m not advocating that Eve shop in Chula Vista (which is much closer to SD 92101 than MM is, btw). I’m just saying that there are “bread-and-butter” rental houses all over the county available NOW in her price range which do not have MR/HOA and, unlike those MM condo examples, have ample off-street pkg and/or a garage available. However, most of them DO attract applicants with families.
[quote=AN]I like Mira Mesa, Racho Bernardo, Rancho Penasquitos. Basically places that are near high tech hub of Sorrento Valley and Rancho Bernardo.[/quote]
AN, you may already be aware that the PQ/RB area that you prefer so much to invest in has hundreds and possibly well over 1000 households in residence which are using Section 8 vouchers for the bulk of their rent. There are many LL’s in 92128/92129 who accept Section 8, and PQ, in particular is FULL of low-income families (92128 has more low-income, often disabled singles). To a lesser extent, the same is true of MM.
[quote=FlyerInHi]…In SD, my dream tenants for a 2-bedroom would be 2 post-doctorates, or 1 post-doc and 1 engineer, sharing the unit. They work all day, have the unit very sparsely furnished and only seldom cook. They are there for 2 or 3 years until they move on…[/quote]
Again, I have to laugh at FIH’s “dream tenants,” one of whom he states here is a “postdoc” (couple?). My questions for him here are as follows:
“What is this theoretical postdoc couple’s actual monthly income?”
“If they’re so intelligent, why would they pay $1800 mo rent for a $1350-$1400 mo (traincar) condo?”
“Do they have any kid(s)?”
“Have you noticed upon move-out if your tenants used the stove … or not?”
“Do you, FIH, actually have current tenants who are a `postdoc couple?'” If so, for how long and what is the monthly rent they’re paying? If not, what are the actual occupations of your current tenant(s)?
And lastly,
Are any of the adults living in your rental(s) currently unemployed or working as a (gasp!) hairdresser or waitress?
I was just wondering and also trying to inject a bit of “realism” to this thread :=D
Participant[quote=FlyerInHi]BTW, here is the competition on the same street. Not quite the competition because it’s brand new.
High $300 for a 1000sf 1-bedroom.
http://www.pardeehomes.com/sorrento-valley/sorrento-ridgeYou might not like it, but other people are paying cash in many cases.
I’m not saying that it’s a good buy. I’m just looking at available inventory in SD for that price point.
Personally, I’ve given up buying in SD and I’ve been looking elsewhere beginning 2 years ago.
I think that for those who were smart enough to buy at the bottom in Mira Mesa, 20 years from now, they’ll look smart. Qualcomm and the tech businesses are changing the demographics (like what happened in San Jose).[/quote]
LOL, Flyer, are the developers in MM still using the “no-wall technique” up there?? (inside joke) :=]
At least most of those small houses in NP have pocket doors or French doors to close off the dining room from the living room.
Here, you have the kitchen, LR and DR all opened up into ONE ROOM! Just one big, happy family :=0
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You’re right. Not only do I not like it but it’s ridiculously overpriced for what you get.
Participant[quote=FlyerInHi] . . . Now show me what else you can buy in the other areas of San Diego you suggested, for $350k, and rents for $1,800 . . . [/quote]
Flyer, I could (seriously) go all over the county but will begin this exercise in my own backyard (10 mi south of dtn SD) for rental SFRs since I couldn’t find any active SFR listings in 92104 and 92116 which weren’t situated on substandard lots. Okay, maybe I found ONE but the house was very, very small. I haven’t checked out 92115 yet.
Bear in mind that most of the current listings below are priced under or well under $350K and these areas are all safe, clean, walkable and close to all.
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Short sale near dtn Chula Vista on large lot w/rear garage apt (granny flat). On the market longer than a year so lender must not be playing ball … or something wrong with the house … I’m guessing granny flat is not permitted, at a minimum. Lot is perfectly flat so that is not the issue.
http://www.sdlookup.com/MLS-120046247-210_2nd_Ave_Chula_Vista_CA_91910
Large fixer in old RDR, a short sale in probate.
http://www.sdlookup.com/MLS-130048679-983_Paseo_Entrada_Chula_Vista_CA_91910
Nice flipped small house on nice-sized lot in dtn Chula Vista – will EASILY rent for $1550 to $1600 LONG TERM. Zoned for professional office or up to 4 units.
http://www.sdlookup.com/MLS-130049956-212_Cypress_St_Chula_Vista_CA_91910
Well-maintained property on large lot in dtn Chula Vista (same neighborhood as above listing). Oversized lot and 1.5 car garage. Will EASILY rent for $1650 to $1800 LONG TERM.
http://www.sdlookup.com/MLS-130052415-763_Elder_Ave_Chula_Vista_CA_91910
Nice flipped house on large lot with substandard garage (I doubt a car bigger than a Miata will fit in there). Same neighborhood as the above listings.
http://www.sdlookup.com/MLS-130044485-466_Elm_Ave_Chula_Vista_CA_91910
Turnkey with 1.5 car gar. Walking distance to Hilltop Elem, Middle and High School (K-12).
http://www.sdlookup.com/MLS-130050327-621_Dennis_Ave_Chula_Vista_CA_91910
Very well-maintained with 1.5 car gar on huge lot just 2 mins walk to $1M++ homes.
http://www.sdlookup.com/MLS-130035303-415_Vista_Way_Chula_Vista_CA_91910
Well-maintained with 1.5 car gar and <5 min walk to mall, hospital, courthouse, etc.
http://www.sdlookup.com/MLS-130053260-538_Fig_Ave_Chula_Vista_CA_91910
I left out any listings with Mello-Roos, swimming pools, heavy fixers, those with high noise levels or on busy streets and SS's priced near $400K that will sell for >$400K, etc. Most of the above are ready to move into NOW with little or no tenant prep or major expense. Last time I looked (abt 9-10 mos ago) rents were $1550 to $1850 for these size houses (perhaps up to $2K mo for the larger ones).
Of course, all of these listings would attract families as rentals and the ones located dtn will also attract professional singles and couples as tenants.
All but two are on one or more bus lines and most tenants like to have this option.
I’ll post more listing links for prospective investment SFRs in other close-in areas later.
Participant[quote=FlyerInHi]Bearish, the proof is in the pudding.
The exact same floor plan I suggested rents for $1,800 per month. And it will go quick. I only saw one on CL. There are few condos on the westside of mira mesa near Sorrento, so professionals taking jobs in the area don’t have a lot of choices (there are new apartments on the east side of MM at I15).
http://sandiego.craigslist.org/csd/apa/4115841533.html
Now show me what else you can buy in the other areas of San Diego you suggested, for $350k, and rents for $1,800 (I’d personally make it nicer and more modern like a downtown condo and charge $2,000)
Question is that really the kind the return the OP wants?[/quote]
I looked on the map and Calle Cristobal in this area appears to be part of the portion which was annexed to MM in recent years. I also noticed that the neither of the listings (sale and rental) for both of your suggestions (in the same complex?) have garages. The rental listing states two parking spaces (uncovered?). $1800 month is a LOT TO PAY to live in a traincar apt. I’m curious what the average length of tenancy is there at that rental price point.
I disagree that tenants who work in that area only have the *new* areas of MM to choose from (the far west and the far east). As I just posted, they have townhomes in the UTC area (w/MANY 3-4 bdrm multilevel units with two-car garages), LJ Colony and Carmel Valley. ALL of those areas are superior to MM, imho, for a variety of reasons. (No offense intended, AN … they just ARE.)
A small SFR anywhere in SD County could easily rent for $1800 mo or more and the owner wouldn’t have HOA dues. Eve won’t be taking out a mtg so she doesn’t have to worry about ROI and cash flow as much as an investor who borrowed most of their purchase money (as AN posted earlier).
Participant[quote=FlyerInHi]bearish, you don’t know what you’re talking about.
If you own a condo in the UTC/Sorrento/MM area, and you bought at the bottom, you’re doing well. There are no vacancies and you can rent it out with very little effort. Literally, over the weekend, your phone rings off the hook.
I happen to know the area I suggested. Pardee built some new housing right next door and those prices have increased very nicely. The people who bought the first phase are sitting pretty. Lots of professionals who are well-qualified to rent so you won’t need to worry. As far as I’m concerned, a tenant who works for a well-known company near his home is pretty much money in the bank. Tenants are busy kids-free professionals who are never home so they don’t damage your unit.
I also own a condo in North Park. That area is more expensive to purchase, the units are older and require more maintenance. The rents are lower, relative to Mira Mesa in the same house value range (because there’s a hip factor to NP and buyers are willing to pay more, especially those who can’t afford Hillcrest or Mission Hills).
North Park is relatively more riff-raff with tenants whose income is harder to verify. One tenant might have an easily verifiable job, but the girlfriend is a hairdresser type deal. Regardless, you cannot buy an SFR for $350k in North Park.
As far are the cheap SFRs in other areas at about $350,000, you’re talking the ‘hood almost, if you can find one in SD. I know that you can’t discriminate against families with kids, but those are little monsters who will damage your rental. I’m generalizing here, but pick a neighborhood where SFRs go for $350k, and see how people live.
I’m assuming the OP wants to buy in SD only. There are not a lot of choices unless you want to accept a lower return.[/quote]
FIH, did you have a close look at the MM condo suggestion? It was so narrow that there was no room for a standard staircase. Instead it had a cheap spiral staircase that a small dog could fall thru and become severely injured. And don’t bump into it in the dark! I’ve seen this “traincar” floorplan in SD County condos before and it is a joke, IMO. It is a classic example of the developer trying to squeeze as many townhomes on a city block as they can.
Several posts in this thread suggest that the rental return percentages were good for those who bought in late 2009 thru as late as late 2011 (in some areas) and that buying an investment property for a reasonable price is over in SD County, for the most part. If there has actually been a 100K “uptick” in prices since other Piggs may have purchased in or near this MM complex (as was suggested here earlier), then this is all the more reason why this condo isn’t worth today’s asking price. I seriously doubt any Piggs would pay “today’s” listed price for it.
In any case, this doesn’t apply to Eve’s situation as she is in a position to pay cash for a rental property NOW.
You also comment on a typical North Park tenant-couple applicant as being possibly one “professional” and one “hairdresser-type.” And also that tenants in MM are all “professionals” (whatever that is supposed to mean). That condo in MM could barely hold two people (and their stuff) with room to turn around. Hopefully, it has a dedicated garage to itself or assigned storage closet. Don’t tell me that the “MM rental-applicant crowd” isn’t full of single-parent families, para professionals and blue collar applicants cuz I’m not buying it. MM is actually blue collar, white collar AND retired and always has been. It is NOT, by any stretch of the imagination, “upscale” or sought after by the well-heeled as is parts of North Park and its close surrounds (South Park and Normal Heights).
If two highly-paid “professionals” who work in Sorrento Valley or Sorrento Mesa choose to rent together instead of buy, they have dozens of vacant rental units in the UTC area, LJ Colony and Carmel Valley to choose from. They don’t have to rent in MM.
I laughed at your statement here that the typical girlfriend/spouse co-tenant in NP is only a (lowly?) “hairdresser type” (and therefore probably doesn’t qualify to be a co-tenant)? It’s funny to me because several regular male posters have posted here that their spouses/SO’s do NOTHING. Meaning they have no “career” whatsoever. They stay home … are housewives, so to speak.
I suggested that Eve might be able to find a light or cosmetic fixer in a nicely gentrified area … I erred when I suggested she shop for SFR’s >1000 sf on a 5000+ sf lot. I meant <=1000 sf on a 5000 sf lot (750 sf to 1200 sf or larger if she can find it). You state NP is "hip" and commands high rent yet you state MM attracts a better tenant and so commands higher rent (for a comparably sized condo/SFR)? That doesn’t make sense, Flyer. Most of those ~1000 sf (circa 1925-1935) houses in NP (92104) have open layouts, sometimes with pocket doors between the dining area and LR (can be opened up to one big room). They usually have a BIG bathroom and two fairly good-sized bedrooms. Over half have one or 1-1/2 car garages. If there is any “traincar-like” homes nearby (like our sample condo here with a ~$235 mo HOA dues obligation), they are likely in NW Univ Heights (92103). I don’t recommend that area for that reason as well as its many odd-shaped substandard lots.
I DID warn Eve that tenant-families could be a lot more of a headache (if she intended to manage herself) but I disagree that tenants in MM are any less of a headache than the urban area(s) she was shopping in. MM, PQ and several other North City SD communities all have their share of Section 8 and other assorted “fixed income” tenants and tenant-applicants.
You’ve also stated here that most (or all) houses listed today for $350K in SD County are located “in the ‘hood” (does this include any possible $350K houses in MM?) and therefore wouldn’t make good investment properties. I disagree that a $350K house listed in SD County today, especially one purchased with all cash, would necessarily be located in “the ‘hood,” whatever the h@ll that is supposed to mean. Eve CAN likely purchase a small 3 bdrm SFR in South, East or Inland North County for $350K all cash today. But it would likely attract applicants with children. Just like the family tenant-applicants in MM, MANY of those applicants are looking for a rental in the area where they grew up because that is where they have relatives nearby to help them with their children. They may very well be a “professional” and even work in Sorrento Mesa/Valley but need to live near family for childcare reasons.
Contrary to the seemingly “popular belief” here, tenants living outside of surrounding zip codes to SD’s high tech office parks aren’t all running brown paper bags in and out of vehicles parked in their driveways for a minute and a half just as soon as dusk sets in. I know it might be kind of a stretch for a few Piggs, but open up your minds just a little. Or better yet, get in your car and this time, get off fwy exits you never have before. Start with the areas which have active SFR listings today for $325K to $400K and do “drive-bys.” If there are any listings in this price range in MM, you can start there, and then compare those streets to streets elsewhere in the county with SFR listings. You might be surprised at the pride of ownership on a lot of these blocks and the level of owner-occupancy, even though they are relatively far away from high-tech office parks. You might also find areas with mature trees you like and houses in this price range spaced a bit further apart than those in MM in this price range. Shocking, I know, but …. they DO exist!
Participant[quote=exsdgal]Here is a hypothetical scenario if the intent is to purchase a rental property w/o any loans.
Available funds: 400K
Purchase price: ~325K
Repairs/Renovation: 20-30K (before renting the place)
Remaining funds: ~40K (after purchase, repairs, escrow…)Annual rental income: 25K (about 15 years to recover the principal)
Annual property expenses: 20% (5K)Would you consider 20K net income/year a good return on the rental purchase? Note – this example does not consider any EOY income tax obligations, time for repairs, appreciation, potential rent increases etc.
In case you find the return to be acceptable… then redfin and craigslist are your friends. Play with the various filters to identify prospective locations/properties. Like others have already mentioned, real estate is a personal preference and the type of property depends on how actively one wants to be involved.
From a turn over perspective I would consider a single family residence is easier to manage. Regardless of the property type to minimize hassles I find the following useful:
– pick a location you are extremely familiar with
– pick a property you will consider moving into (if necessary)
– be ready to learn anything and everything about property repairs (this helps to understand whether to panic/or not during those tenant calls)
– with any repairs pick quality over price for essential items, and compromise on the auxiliary items
– identify a core set of principles for the tenant selection process and do not compromise
– finally set the expectations of the tenants, and try not to let them run your life!Good luck with your research.[/quote]
Great suggestions, exsdgal, especially the one about picking a neighborhood Eve is “extremely familiar with.”
The MM condo (suggested earlier) not only is narrow enough to emulate a train car inside (notice the sorry a$$ kitchen so narrow that if the oven is open, one can’t stand in front of the sink or open the frig??), it has ~$235 in monthly HOA dues (subject to hikes and also special assessments). Having lived in Pt Loma for an unspecified amount of time, Eve may be completely unfamiliar with the type of tenant who would be attracted to that small condo in (congested) MM or at the speed which it will turn over annually.
Contrary to popular belief here, a well-located SFR in metro SD (urban, if poss), even one which has >=1000 sf, attracts a very high-quality tenant. I think she should continue to pursue small investment properties in 92104, 92115 and 92116, as she may have already been doing and then trying to get an offer accepted for up to 80K less than $400K, so she will have some “rehab” money left over.
Eve, in your price range, I feel if you search in SD’s northern communities (north of I-8), you will get interested families for tenants which are far more “high-maintenance” for the landlord than singles and couples. And SFRs in some parts of Linda Vista (92111), while seemingly “affordable,” tend to attract a more low-income crowd living paycheck to paycheck (or benefit pymt to benefit pymt, as the case may be).
I also think SFRs in your price range in SD’s eastern and southern close-in suburbs attract mostly families as well, mostly who have relatives living in the immediate area.
I don’t think you will be able to find a well-located SFR in “urban” SD in your price range UNLESS you are willing to accept one which is 55-90 yrs old. In CA coastal counties, age really has no bearing on value or desirability as a very large portion of older stock is located in the best locations.
While shopping in “urban” SD, try to find at least a 5000 sf (std) lot and just be sure to have an inspection/engineering contingency in your offer with at least a ten-day window to perform. Yes, even for houses on raised foundations.
If you need a referral to a competent local structural engineer, please pm me.
Good luck, don’t be afraid to underbid the asking price with a 3-4 week closing window and be patient 🙂
ParticipantParticipant[quote=paramount][quote=bearishgurl]I just called and the commissary at 32nd St NAVSTA SD has opened back up for regular business hours beginning this morning. That’s good news.[/quote]
Is the 32nd St NAVSTA really just code for you’re going to wal mart?[/quote]
Actually, you’ll find me at Walmart only if I’m dropping someone off there who doesn’t drive. OR, if I am in flyover America where there is absolutely nothing else to choose from :=]
The military commissaries have all brand names, including good quality food, toiletries and household items without the huge markup of Ralph’s, Vons, and Albertsons. Their prices, selection and quality beat the h@ll out of Walmart. They add a 5.9% “surcharge” at the register for the benefit of military MWR installations but do not charge tax on non-food items. At patron *should* tip the bagger 2.5 – 3% of their tab, if they have carryout service as this is their only payment. Otherwise, tip $1 for 15 items or less in the express lines and self carry out. Self checkout express lines do not require a tip. Even with surcharge and tip, a commissary shopper will likely save over 40% on their grocery bill in the absence of coupons (which can be used anywhere). This is because their mdse is only marked up enough to be self-sustaining … that is, pay for the workers who work there and the utilities and supplies needed to run it. As such, it is a non-profit enterprise for the benefit of active duty and retired personnel and their families and select reservists at certain windows which expire, depending upon the reservist’s schedule. It is possible to be a retired reservist and retain commissary privileges for life but the length of service required is longer than that of an active duty member.
I think the military exchanges are not terribly competitive price-wise with outside stores but the commissary is an awesome privilege which I am going to miss. It doesn’t matter much anyway, since my kids will all be gone and I will probably move somewhere which is far from a military commissary.
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