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davelj
ParticipantWall Street to Uncle Ben:
“WHAAAAAAAA!! WHAAAAAAAAA!! BABY WANT MORE CAKE AND CANDY!! WHAAAAAAAAAAA!!”
But I repeat myself.
ParticipantWall Street to Uncle Ben:
“WHAAAAAAAA!! WHAAAAAAAAA!! BABY WANT MORE CAKE AND CANDY!! WHAAAAAAAAAAA!!”
But I repeat myself.
ParticipantWall Street to Uncle Ben:
“WHAAAAAAAA!! WHAAAAAAAAA!! BABY WANT MORE CAKE AND CANDY!! WHAAAAAAAAAAA!!”
But I repeat myself.
ParticipantBreeze,
Not to worry. I’m not really interested in buying rental units in south San Diego. I only mentioned south San Diego because things are further along the way to making sense there from an investment perspective than other parts of the county. Your observation about Mexicans heading back to Mexico makes sense to me, but a friend of mine is seeing something completely different. He’s a partner in a company that owns two large apartment complexes in Chula Vista (more than 400 units between the two of them). They have zero vacancies and are raising rents 8% as new tenants come in. They’re seeing an overflow from people losing their homes and needing to rent. He thinks rents will eventually flatten out as the REOs get sold to investors but that could be a couple of years off. Anyhow, just an interesting data point.
sdrealtor,
25%-35% of rent for maintenance and vacancies is an industry standard. New paint, carpet, etc. plus vacancies really adds up, especially in a rental where then tenant generally doesn’t care too much. I’m not saying that there aren’t properties worth buying right now as rentals. I’m merely saying that I doubt there’s anything that “truly” cash flows out there after taking into account all of the operating expenses. But we’ll get there. There were plenty of them around in ’96-’98. We’ll see similar relative pricing again.
ParticipantBreeze,
Not to worry. I’m not really interested in buying rental units in south San Diego. I only mentioned south San Diego because things are further along the way to making sense there from an investment perspective than other parts of the county. Your observation about Mexicans heading back to Mexico makes sense to me, but a friend of mine is seeing something completely different. He’s a partner in a company that owns two large apartment complexes in Chula Vista (more than 400 units between the two of them). They have zero vacancies and are raising rents 8% as new tenants come in. They’re seeing an overflow from people losing their homes and needing to rent. He thinks rents will eventually flatten out as the REOs get sold to investors but that could be a couple of years off. Anyhow, just an interesting data point.
sdrealtor,
25%-35% of rent for maintenance and vacancies is an industry standard. New paint, carpet, etc. plus vacancies really adds up, especially in a rental where then tenant generally doesn’t care too much. I’m not saying that there aren’t properties worth buying right now as rentals. I’m merely saying that I doubt there’s anything that “truly” cash flows out there after taking into account all of the operating expenses. But we’ll get there. There were plenty of them around in ’96-’98. We’ll see similar relative pricing again.
ParticipantBreeze,
Not to worry. I’m not really interested in buying rental units in south San Diego. I only mentioned south San Diego because things are further along the way to making sense there from an investment perspective than other parts of the county. Your observation about Mexicans heading back to Mexico makes sense to me, but a friend of mine is seeing something completely different. He’s a partner in a company that owns two large apartment complexes in Chula Vista (more than 400 units between the two of them). They have zero vacancies and are raising rents 8% as new tenants come in. They’re seeing an overflow from people losing their homes and needing to rent. He thinks rents will eventually flatten out as the REOs get sold to investors but that could be a couple of years off. Anyhow, just an interesting data point.
sdrealtor,
25%-35% of rent for maintenance and vacancies is an industry standard. New paint, carpet, etc. plus vacancies really adds up, especially in a rental where then tenant generally doesn’t care too much. I’m not saying that there aren’t properties worth buying right now as rentals. I’m merely saying that I doubt there’s anything that “truly” cash flows out there after taking into account all of the operating expenses. But we’ll get there. There were plenty of them around in ’96-’98. We’ll see similar relative pricing again.
ParticipantBreeze,
Not to worry. I’m not really interested in buying rental units in south San Diego. I only mentioned south San Diego because things are further along the way to making sense there from an investment perspective than other parts of the county. Your observation about Mexicans heading back to Mexico makes sense to me, but a friend of mine is seeing something completely different. He’s a partner in a company that owns two large apartment complexes in Chula Vista (more than 400 units between the two of them). They have zero vacancies and are raising rents 8% as new tenants come in. They’re seeing an overflow from people losing their homes and needing to rent. He thinks rents will eventually flatten out as the REOs get sold to investors but that could be a couple of years off. Anyhow, just an interesting data point.
sdrealtor,
25%-35% of rent for maintenance and vacancies is an industry standard. New paint, carpet, etc. plus vacancies really adds up, especially in a rental where then tenant generally doesn’t care too much. I’m not saying that there aren’t properties worth buying right now as rentals. I’m merely saying that I doubt there’s anything that “truly” cash flows out there after taking into account all of the operating expenses. But we’ll get there. There were plenty of them around in ’96-’98. We’ll see similar relative pricing again.
ParticipantBreeze,
Not to worry. I’m not really interested in buying rental units in south San Diego. I only mentioned south San Diego because things are further along the way to making sense there from an investment perspective than other parts of the county. Your observation about Mexicans heading back to Mexico makes sense to me, but a friend of mine is seeing something completely different. He’s a partner in a company that owns two large apartment complexes in Chula Vista (more than 400 units between the two of them). They have zero vacancies and are raising rents 8% as new tenants come in. They’re seeing an overflow from people losing their homes and needing to rent. He thinks rents will eventually flatten out as the REOs get sold to investors but that could be a couple of years off. Anyhow, just an interesting data point.
sdrealtor,
25%-35% of rent for maintenance and vacancies is an industry standard. New paint, carpet, etc. plus vacancies really adds up, especially in a rental where then tenant generally doesn’t care too much. I’m not saying that there aren’t properties worth buying right now as rentals. I’m merely saying that I doubt there’s anything that “truly” cash flows out there after taking into account all of the operating expenses. But we’ll get there. There were plenty of them around in ’96-’98. We’ll see similar relative pricing again.
ParticipantJim Grant is fantastic. He’s one of the very best financial commentators. I rarely plug investment-related publications, but Grant’s Interest Rate Observer is one of a very small number of truly essential financial publications out there. Highly recommended.
ParticipantJim Grant is fantastic. He’s one of the very best financial commentators. I rarely plug investment-related publications, but Grant’s Interest Rate Observer is one of a very small number of truly essential financial publications out there. Highly recommended.
ParticipantJim Grant is fantastic. He’s one of the very best financial commentators. I rarely plug investment-related publications, but Grant’s Interest Rate Observer is one of a very small number of truly essential financial publications out there. Highly recommended.
ParticipantJim Grant is fantastic. He’s one of the very best financial commentators. I rarely plug investment-related publications, but Grant’s Interest Rate Observer is one of a very small number of truly essential financial publications out there. Highly recommended.
ParticipantJim Grant is fantastic. He’s one of the very best financial commentators. I rarely plug investment-related publications, but Grant’s Interest Rate Observer is one of a very small number of truly essential financial publications out there. Highly recommended.
ParticipantWell, the “better” markets are the last to fall. And they generally don’t fall as hard. So, we’ll see.
On a slightly different topic, I believe you mentioned in a different thread that you were seeing foreclosures that would cash flow. I haven’t seen this, although I am now seeing properties – mainly in south San Diego – in which the rent would cover the mortgage (and HOAs) with conventional financing (20% down). In fact, there are more than a few of these now. But this is relatively recent, as in within the last two months.
But I still haven’t seen anything anywhere that would cash flow after taking into account maintenance, vacancies, etc. But at least rents that cover the mortgage is a step in the right direction.
Have you seen specific properties where the rent would cover the mortgage AND all operating expenses (including vacancies), which generally eat up 25%-35% of rents?
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