[Eugene]

Note: edited my numbers to be more grounded in reality.

San Diego median household numbers are skewed downwards for two reasons. First, many wealthy people don’t live in San Diego proper. Second, poorest families and households don’t own homes. Median homeowner incomes are higher than median household incomes.

http://factfinder.census.gov/servlet/DTTable?_bm=y&-context=dt&-ds_name=ACS_2006_EST_G00_&-CONTEXT=dt&-mt_name=ACS_2006_EST_G2000_B25119&-tree_id=306&-geo_id=05000US06073&-search_results=&-format=&-_lang=en

Median owner-occupied household income for San Diego county in 2006 is $78,150.

[Eugene]

Note: edited my numbers to be more grounded in reality.

San Diego median household numbers are skewed downwards for two reasons. First, many wealthy people don’t live in San Diego proper. Second, poorest families and households don’t own homes. Median homeowner incomes are higher than median household incomes.

http://factfinder.census.gov/servlet/DTTable?_bm=y&-context=dt&-ds_name=ACS_2006_EST_G00_&-CONTEXT=dt&-mt_name=ACS_2006_EST_G2000_B25119&-tree_id=306&-geo_id=05000US06073&-search_results=&-format=&-_lang=en

Median owner-occupied household income for San Diego county in 2006 is $78,150.

[Eugene]

80k pretty much puts you in the top 20% of the income bracket, for a family, let alone an individual.

Unfortunately 80k isn’t what in used to be. 80k for a family is close to median in San Diego county. You need 130k to get into the top 20% of the income bracket.

If we just take year 1999 median incomes of homeowner households and inflate them into the present, we get something like this

50k = Logan Heights
70k = Encanto
80k = Mira Mesa
100k = UTC
110k = Tierrasanta, Encinitas
120k = RB or RP
130k = Scripps Ranch, La Jolla
145k = Carmel Valley

Keep in mind, back then 4S Ranch, Eastlake, and Del Sur didn’t exist. Today we have more competition at the top.

[Eugene]

80k pretty much puts you in the top 20% of the income bracket, for a family, let alone an individual.

Unfortunately 80k isn’t what in used to be. 80k for a family is close to median in San Diego county. You need 130k to get into the top 20% of the income bracket.

If we just take year 1999 median incomes of homeowner households and inflate them into the present, we get something like this

50k = Logan Heights
70k = Encanto
80k = Mira Mesa
100k = UTC
110k = Tierrasanta, Encinitas
120k = RB or RP
130k = Scripps Ranch, La Jolla
145k = Carmel Valley

Keep in mind, back then 4S Ranch, Eastlake, and Del Sur didn’t exist. Today we have more competition at the top.

[Eugene]

80k pretty much puts you in the top 20% of the income bracket, for a family, let alone an individual.

Unfortunately 80k isn’t what in used to be. 80k for a family is close to median in San Diego county. You need 130k to get into the top 20% of the income bracket.

If we just take year 1999 median incomes of homeowner households and inflate them into the present, we get something like this

50k = Logan Heights
70k = Encanto
80k = Mira Mesa
100k = UTC
110k = Tierrasanta, Encinitas
120k = RB or RP
130k = Scripps Ranch, La Jolla
145k = Carmel Valley

Keep in mind, back then 4S Ranch, Eastlake, and Del Sur didn’t exist. Today we have more competition at the top.

[Eugene]

80k pretty much puts you in the top 20% of the income bracket, for a family, let alone an individual.

Unfortunately 80k isn’t what in used to be. 80k for a family is close to median in San Diego county. You need 130k to get into the top 20% of the income bracket.

If we just take year 1999 median incomes of homeowner households and inflate them into the present, we get something like this

50k = Logan Heights
70k = Encanto
80k = Mira Mesa
100k = UTC
110k = Tierrasanta, Encinitas
120k = RB or RP
130k = Scripps Ranch, La Jolla
145k = Carmel Valley

Keep in mind, back then 4S Ranch, Eastlake, and Del Sur didn’t exist. Today we have more competition at the top.

[Eugene]

80k pretty much puts you in the top 20% of the income bracket, for a family, let alone an individual.

Unfortunately 80k isn’t what in used to be. 80k for a family is close to median in San Diego county. You need 130k to get into the top 20% of the income bracket.

If we just take year 1999 median incomes of homeowner households and inflate them into the present, we get something like this

50k = Logan Heights
70k = Encanto
80k = Mira Mesa
100k = UTC
110k = Tierrasanta, Encinitas
120k = RB or RP
130k = Scripps Ranch, La Jolla
145k = Carmel Valley

Keep in mind, back then 4S Ranch, Eastlake, and Del Sur didn’t exist. Today we have more competition at the top.

[Eugene]

Let’s start putting some numbers together.

Current asking rates for Hard Rock Hotel studios are ~$300/night (high end of the spectrum for Gaslamp). They probably get 50%. 4500/month cash flow assuming full occupancy. This income is taxable (let’s say 25% tax bracket). They have to pay property tax ($500/month) and possibly some sort of association fee. This leaves them with
$2500-2800 per month after tax. They have to pay $1700/month mortgage (not tax deductible), and they forego ~$900/month income (after-tax) they could have had if they took their 300k and put it on a 5% CD.

They will roughly break even if hotel can maintain full occupancy at those prices.

Appreciation/depreciation is a more difficult question. I can’t find any resale listings for Hard Rock condos. Ultimately resale prices will depend on how profitable those places really are.

[Eugene]

Let’s start putting some numbers together.

Current asking rates for Hard Rock Hotel studios are ~$300/night (high end of the spectrum for Gaslamp). They probably get 50%. 4500/month cash flow assuming full occupancy. This income is taxable (let’s say 25% tax bracket). They have to pay property tax ($500/month) and possibly some sort of association fee. This leaves them with
$2500-2800 per month after tax. They have to pay $1700/month mortgage (not tax deductible), and they forego ~$900/month income (after-tax) they could have had if they took their 300k and put it on a 5% CD.

They will roughly break even if hotel can maintain full occupancy at those prices.

Appreciation/depreciation is a more difficult question. I can’t find any resale listings for Hard Rock condos. Ultimately resale prices will depend on how profitable those places really are.

[Eugene]

Let’s start putting some numbers together.

Current asking rates for Hard Rock Hotel studios are ~$300/night (high end of the spectrum for Gaslamp). They probably get 50%. 4500/month cash flow assuming full occupancy. This income is taxable (let’s say 25% tax bracket). They have to pay property tax ($500/month) and possibly some sort of association fee. This leaves them with
$2500-2800 per month after tax. They have to pay $1700/month mortgage (not tax deductible), and they forego ~$900/month income (after-tax) they could have had if they took their 300k and put it on a 5% CD.

They will roughly break even if hotel can maintain full occupancy at those prices.

Appreciation/depreciation is a more difficult question. I can’t find any resale listings for Hard Rock condos. Ultimately resale prices will depend on how profitable those places really are.

[Eugene]

Let’s start putting some numbers together.

Current asking rates for Hard Rock Hotel studios are ~$300/night (high end of the spectrum for Gaslamp). They probably get 50%. 4500/month cash flow assuming full occupancy. This income is taxable (let’s say 25% tax bracket). They have to pay property tax ($500/month) and possibly some sort of association fee. This leaves them with
$2500-2800 per month after tax. They have to pay $1700/month mortgage (not tax deductible), and they forego ~$900/month income (after-tax) they could have had if they took their 300k and put it on a 5% CD.

They will roughly break even if hotel can maintain full occupancy at those prices.

Appreciation/depreciation is a more difficult question. I can’t find any resale listings for Hard Rock condos. Ultimately resale prices will depend on how profitable those places really are.

[Eugene]

Let’s start putting some numbers together.

Current asking rates for Hard Rock Hotel studios are ~$300/night (high end of the spectrum for Gaslamp). They probably get 50%. 4500/month cash flow assuming full occupancy. This income is taxable (let’s say 25% tax bracket). They have to pay property tax ($500/month) and possibly some sort of association fee. This leaves them with
$2500-2800 per month after tax. They have to pay $1700/month mortgage (not tax deductible), and they forego ~$900/month income (after-tax) they could have had if they took their 300k and put it on a 5% CD.

They will roughly break even if hotel can maintain full occupancy at those prices.

Appreciation/depreciation is a more difficult question. I can’t find any resale listings for Hard Rock condos. Ultimately resale prices will depend on how profitable those places really are.

[Eugene]

max 29% monthly housing payments to gross income, if I remember correctly.

[Eugene]

max 29% monthly housing payments to gross income, if I remember correctly.

[Eugene]

max 29% monthly housing payments to gross income, if I remember correctly.

[Author]

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