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CoronitaParticipant[quote=spdrun]No, on Mars. It’s doable even in San Diego, probably with closer to 6% return. 8%-8.5% was possible last year.[/quote]
You keep saying it, so prove it.. 🙂
1. Name one property.
2. Why aren’t you doing it?
CoronitaParticipant[quote=spdrun]What about just spending $100k cash and borrowing $50-100k for a slightly dumpy condo that pays 6-7% return? Less risk when you have 50-66% down.[/quote]
Where, in San Diego?
CoronitaParticipant[quote=HLS]Do you really believe that property at these levels is really a good ‘investment’ ?
Do you think that they will be worth more in 10 yrs ?With realistic maintenance & vacancy factors, you are possibly looking at a zero or negative return on your $100K investment.
How long will interest rates be kept artificially low and what’s going to happen to the price of average real estate if mortgage rates go back to the 6% range
What’s going to happen to the country if there is a stock market crash and the untested 401K system
collapses[/quote]I guess the more important question…. What do people think would be a “better” investment right now?
I’m thinking a cash advance business. But that to me is just kinda….seedy….
Maybe medical MJ…..
CoronitaParticipantThese are questions you should be asking you agent.
CoronitaParticipantSpeaking of environmental law..
Don’t even get me started….You folks ever try to replace a broken/worn catalytic converter?
For a specific autocross car, if I buy the california “CARB” version, it’s $300. If I buy the “federal” version that is used in other states, it’s $99…
The difference?
The California one comes with a “CARB sticker” Everything else is pretty much the same in terms of actually cutting emissions….Of course, I could do the a-hole thing to the environment, and just take out the entire catalytic converter and stick a straight pipe there so just about everything out of the engine goes into the environment, and never register it and tow it to wherever I need to drive it… But currently too much of a hassle for me, that and I would need to find a place to park a trailer hitch…
CoronitaParticipant[quote=wannbelord]Thank you flu and AN for your suggestions and insight. As an investment property what is the benefit of going with a townhouse against an SFR? Will the rental market for SFR is limited as against a townhouse?[/quote]
For me, it wouldn’t matter as long as which one fits my budget and pencils out.. I’m not going to live there, so I don’t care….
For a condo/townhome, you have hoa costs to deal with. And you have to see if and how much the hoa management is underfunded/if any…One of my condos was dirt cheap. But one of the caveats was there was so many foreclosures/short sales in that unit, that the HOA was underfunded. So knowingly, the HOA cost was increased from $289/month to roughly $400/month for the next 5 years as sort of a special assessment…It still pencils out, but just something you need to be aware of…
For SFH, you have much more maintenance/insurance costs to deal with, IE like everything ….
SFH historically appreciated better than condos/townhomes…
Just look at the numbers to see if either fit..or not..
There’s other pigglords here that are much more seasoned than me, so maybe they can weigh in… I’m really relatively new to this, and (knock on wood) condos have worked out for me simply because they fit my budget, and I wanted more property versus having one with most of my money in it…The only SFH I have isn’t here, and it was mainly out of luck of being my primary residence first versus being an actual rental property that I actively bought for that purpose..
Typically, though, I don’t think a SFH CarmelV or Irvine would fit your budget you mentioned above…And unless you are actually planning to live in one of those homes and first build equity a few years by living there, SFH also don’t pencil out very well either as rental income…
Places like CarmelV and Irvine probably are more of an appreciation play than an rental income generation play, and one probably ends up trying to break even on renting it out while hoping appreciation will continue into the future….
You probably need to spend some time actively looking…Some of us have never stopped looking over the years. And with that, sometimes it means waiting and waiting and waiting..(Some of us waited too long too and saw opportunity fly right by, including me)….It’s not generally something one can wake up in the morning and decide they want to buy a rental property and be done with it by the next morning….Don’t let this be discouragement, because imho you should always be looking.. But, just be realistic that it’s probably not something that is going to be quick, especially right now..
Subscribe to things like redfin and get a regular update on properties available, and that will get you tuned into what the resale market is currently doing. And if you need to figure out how much rent is to see if it will cash flow at the level you want, look on craigslist… or if you really want to be sure, do what some people do while they are in escrow and make a fake “for rent” posts in craiglist to test how much rent you can fetch for a given location..If you end up getting 5 responses over 3-4 days, then I think the rent price is pretty close to market…If you get 8+ responses in less than 24 hrs, than it means you set the rent price lower than market price…
CoronitaParticipantCarmel Valley is not going to cash flow well right now with your parameters. If they did, many of us would have already bought several already. The time to have bought would have been between 2010-2011 and even maybe 2012….
a 2/2 condo in CarmelV will run around $420k on the low side… Then you have mello roos on top of your normal property tax total roughly 1.3%, and an HOA probably roughly around $280/month (on the low side)… Assuming you put 100k down and borrow 320k, with the prevailing rate of 4.5%/30year,
you’re looking at $2423/month in payments for something that probably rents for about that, maybe a little lower around $2300/month…CoronitaParticipantLooks like shorts are getting their arses kicked again in the markets today….
CoronitaParticipantI never thought I’d see a day when there would be a negative interest rate…Lol….
CoronitaParticipant[quote=joec]Maybe the EU can loan money to Americans with no doc loans to inflate their currency…I wouldn’t mind getting a loan for any purpose at a low rate.[/quote]
You know. That would be interesting if they started offering 1.0% fixed rate loans to us Americans… Sign me up…
I wonder what this mean for rich(er) europeans… I suspect a lot more borrowing to buy a lot more assets, sort of like what happened here…..
CoronitaParticipant.
CoronitaParticipantLol.. If you think that’s bad, just wait until you need to get your car repainted in CA…..
Water-based car paint….
CoronitaParticipantI’m waiting for a day when one of those people that stick a flyer on my car accidentally drops the windshield wiper on my windshield hard, to the point that it leaves a crack on the windshield….
I could use a new windshield on one of my cars, and I don’t feel like paying for it myself 🙁
CoronitaParticipant…Meanwhile, I’m told Nerf has successfully tapped into the girl’s toy market with the latest “Rebelle” series of toys….By making them pink…..
Dude, guns are in are “culture” from day 1….
“Bang bang, you’re dead….”
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