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(former)FormerSanDiegan
ParticipantMore like West Clairemont, but this is a nice neighborhood. Moraga is a bit busy at times.
The price and listing seem to be aimed at creating a bidding war. But this house is more than a fixer. It’s pretty much trashed.
Check out the pix on sdlookup …
My favorite is the bathroom picture with the “Rifleman” magazine. Personally, I think I’d stay away from this situation.
July 25, 2008 at 4:03 PM in reply to: Bailout bill tax credit provision has some fine print. #247039ParticipantThe 7500 interest-free loan is a non-factor in high-cost states like California. Now, in Michigan and Ohio it could impact the low-end significantly. That is equivalent to 5% of your house in some of these places. Think of it as a small interest-free piggyback 2nd. It might nudge a few more people to buy at the low end in low-cost states.
July 25, 2008 at 4:03 PM in reply to: Bailout bill tax credit provision has some fine print. #247192ParticipantThe 7500 interest-free loan is a non-factor in high-cost states like California. Now, in Michigan and Ohio it could impact the low-end significantly. That is equivalent to 5% of your house in some of these places. Think of it as a small interest-free piggyback 2nd. It might nudge a few more people to buy at the low end in low-cost states.
July 25, 2008 at 4:03 PM in reply to: Bailout bill tax credit provision has some fine print. #247199ParticipantThe 7500 interest-free loan is a non-factor in high-cost states like California. Now, in Michigan and Ohio it could impact the low-end significantly. That is equivalent to 5% of your house in some of these places. Think of it as a small interest-free piggyback 2nd. It might nudge a few more people to buy at the low end in low-cost states.
July 25, 2008 at 4:03 PM in reply to: Bailout bill tax credit provision has some fine print. #247255ParticipantThe 7500 interest-free loan is a non-factor in high-cost states like California. Now, in Michigan and Ohio it could impact the low-end significantly. That is equivalent to 5% of your house in some of these places. Think of it as a small interest-free piggyback 2nd. It might nudge a few more people to buy at the low end in low-cost states.
July 25, 2008 at 4:03 PM in reply to: Bailout bill tax credit provision has some fine print. #247261ParticipantThe 7500 interest-free loan is a non-factor in high-cost states like California. Now, in Michigan and Ohio it could impact the low-end significantly. That is equivalent to 5% of your house in some of these places. Think of it as a small interest-free piggyback 2nd. It might nudge a few more people to buy at the low end in low-cost states.
Participantibjames –
The rent*12*20 was an assumption that 5% gross rent on a property would yield break even. E.g. Annual rent should be 5% of the property value. The 12 is 12 months. The 20 is 1/0.05However, this is not really the break even point. It depends on amount down, maintenance and a host of other factors.
A similar rule-of-thumb approach, (assuming interest rates in the 6 to 7% range), is that single-family home property value is 15x the annual rent or less (about 6.7% gross rate). This is the point where, from a primary residence point of view owning versus renting approaches break even with 20% down.
For SFH investment property, I am more conservative and would want more like 12 or 14x annual rent. Because unlike the maintenance of your own home maintenance of rental property is simply an expense. In you own home, maintenance becomes a hobby (especially your first house).
Participantibjames –
The rent*12*20 was an assumption that 5% gross rent on a property would yield break even. E.g. Annual rent should be 5% of the property value. The 12 is 12 months. The 20 is 1/0.05However, this is not really the break even point. It depends on amount down, maintenance and a host of other factors.
A similar rule-of-thumb approach, (assuming interest rates in the 6 to 7% range), is that single-family home property value is 15x the annual rent or less (about 6.7% gross rate). This is the point where, from a primary residence point of view owning versus renting approaches break even with 20% down.
For SFH investment property, I am more conservative and would want more like 12 or 14x annual rent. Because unlike the maintenance of your own home maintenance of rental property is simply an expense. In you own home, maintenance becomes a hobby (especially your first house).
Participantibjames –
The rent*12*20 was an assumption that 5% gross rent on a property would yield break even. E.g. Annual rent should be 5% of the property value. The 12 is 12 months. The 20 is 1/0.05However, this is not really the break even point. It depends on amount down, maintenance and a host of other factors.
A similar rule-of-thumb approach, (assuming interest rates in the 6 to 7% range), is that single-family home property value is 15x the annual rent or less (about 6.7% gross rate). This is the point where, from a primary residence point of view owning versus renting approaches break even with 20% down.
For SFH investment property, I am more conservative and would want more like 12 or 14x annual rent. Because unlike the maintenance of your own home maintenance of rental property is simply an expense. In you own home, maintenance becomes a hobby (especially your first house).
Participantibjames –
The rent*12*20 was an assumption that 5% gross rent on a property would yield break even. E.g. Annual rent should be 5% of the property value. The 12 is 12 months. The 20 is 1/0.05However, this is not really the break even point. It depends on amount down, maintenance and a host of other factors.
A similar rule-of-thumb approach, (assuming interest rates in the 6 to 7% range), is that single-family home property value is 15x the annual rent or less (about 6.7% gross rate). This is the point where, from a primary residence point of view owning versus renting approaches break even with 20% down.
For SFH investment property, I am more conservative and would want more like 12 or 14x annual rent. Because unlike the maintenance of your own home maintenance of rental property is simply an expense. In you own home, maintenance becomes a hobby (especially your first house).
Participantibjames –
The rent*12*20 was an assumption that 5% gross rent on a property would yield break even. E.g. Annual rent should be 5% of the property value. The 12 is 12 months. The 20 is 1/0.05However, this is not really the break even point. It depends on amount down, maintenance and a host of other factors.
A similar rule-of-thumb approach, (assuming interest rates in the 6 to 7% range), is that single-family home property value is 15x the annual rent or less (about 6.7% gross rate). This is the point where, from a primary residence point of view owning versus renting approaches break even with 20% down.
For SFH investment property, I am more conservative and would want more like 12 or 14x annual rent. Because unlike the maintenance of your own home maintenance of rental property is simply an expense. In you own home, maintenance becomes a hobby (especially your first house).
ParticipantDon’t know about 4S, but PB used to be a landfill. Still is.
🙂
Mission Bay also was once a landfill.
ParticipantDon’t know about 4S, but PB used to be a landfill. Still is.
🙂
Mission Bay also was once a landfill.
ParticipantDon’t know about 4S, but PB used to be a landfill. Still is.
🙂
Mission Bay also was once a landfill.
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