[recordsclerk]

Encinitas will not drop as much from peak as Chula Vista because of the housing stock. Most of Chula Vista east of 805 was built after 2000 and a large percentage of homes were built and sold during the height of the market leading to large amounts of forclosure inventory. This must sell inventory just feeds upon it’s self creating more price adjustments and further downward pressure. As prices drop beyound the 30% percent mark, some people that are able to pay their mortages just decided to let the home go into forclosure because they don’t want to pay on a house the is worth 30%+ less then what they owe. At some point these price drops will make their way up to nicer areas, but won’t have the forclosure fuel to create these kinds of price drops. Encinitas will see further price pressure and will have a delayed effect since there isn’t enough must sell inventory. Like Bugs has said before, everything is interconnected and it’s finally starting to show in sales. It’s like what Rich said about the areas that have declined the most are seeing more sales, while areas that are holding strong are seeing fewer sales. So at some point the nicer areas are going to feel the pain. It’s just hard to guess how much and when.

[recordsclerk]

Encinitas will not drop as much from peak as Chula Vista because of the housing stock. Most of Chula Vista east of 805 was built after 2000 and a large percentage of homes were built and sold during the height of the market leading to large amounts of forclosure inventory. This must sell inventory just feeds upon it’s self creating more price adjustments and further downward pressure. As prices drop beyound the 30% percent mark, some people that are able to pay their mortages just decided to let the home go into forclosure because they don’t want to pay on a house the is worth 30%+ less then what they owe. At some point these price drops will make their way up to nicer areas, but won’t have the forclosure fuel to create these kinds of price drops. Encinitas will see further price pressure and will have a delayed effect since there isn’t enough must sell inventory. Like Bugs has said before, everything is interconnected and it’s finally starting to show in sales. It’s like what Rich said about the areas that have declined the most are seeing more sales, while areas that are holding strong are seeing fewer sales. So at some point the nicer areas are going to feel the pain. It’s just hard to guess how much and when.

[recordsclerk]

You would have to be a cash buyer or have access to money to buy into situations like this. I have always wondered what the government will do in these extreme cases. Currently the pending condos have an asking price of 85K for a 2bd 1ba and the other condo listed at 75k for 1bd 1ba. I’m just sitting on the sideline waiting for prices under 50K. I would probably at that point be able to buy 4 units. The one bedrooms are renting for $700+ and the 2 bedrooms are renting for $900+. I think this thing can be fixed but it will take time. I’m not sure if someone can buy out this complex because these are individually owned and are going to be sold 1 at a time. There are some serious risk involved, but at a low enough price it might be worth it. I also think that when the price becomes more enticing there will be enough investors to make this work.

[recordsclerk]

You would have to be a cash buyer or have access to money to buy into situations like this. I have always wondered what the government will do in these extreme cases. Currently the pending condos have an asking price of 85K for a 2bd 1ba and the other condo listed at 75k for 1bd 1ba. I’m just sitting on the sideline waiting for prices under 50K. I would probably at that point be able to buy 4 units. The one bedrooms are renting for $700+ and the 2 bedrooms are renting for $900+. I think this thing can be fixed but it will take time. I’m not sure if someone can buy out this complex because these are individually owned and are going to be sold 1 at a time. There are some serious risk involved, but at a low enough price it might be worth it. I also think that when the price becomes more enticing there will be enough investors to make this work.

[recordsclerk]

You would have to be a cash buyer or have access to money to buy into situations like this. I have always wondered what the government will do in these extreme cases. Currently the pending condos have an asking price of 85K for a 2bd 1ba and the other condo listed at 75k for 1bd 1ba. I’m just sitting on the sideline waiting for prices under 50K. I would probably at that point be able to buy 4 units. The one bedrooms are renting for $700+ and the 2 bedrooms are renting for $900+. I think this thing can be fixed but it will take time. I’m not sure if someone can buy out this complex because these are individually owned and are going to be sold 1 at a time. There are some serious risk involved, but at a low enough price it might be worth it. I also think that when the price becomes more enticing there will be enough investors to make this work.

[recordsclerk]

You would have to be a cash buyer or have access to money to buy into situations like this. I have always wondered what the government will do in these extreme cases. Currently the pending condos have an asking price of 85K for a 2bd 1ba and the other condo listed at 75k for 1bd 1ba. I’m just sitting on the sideline waiting for prices under 50K. I would probably at that point be able to buy 4 units. The one bedrooms are renting for $700+ and the 2 bedrooms are renting for $900+. I think this thing can be fixed but it will take time. I’m not sure if someone can buy out this complex because these are individually owned and are going to be sold 1 at a time. There are some serious risk involved, but at a low enough price it might be worth it. I also think that when the price becomes more enticing there will be enough investors to make this work.

[recordsclerk]

You would have to be a cash buyer or have access to money to buy into situations like this. I have always wondered what the government will do in these extreme cases. Currently the pending condos have an asking price of 85K for a 2bd 1ba and the other condo listed at 75k for 1bd 1ba. I’m just sitting on the sideline waiting for prices under 50K. I would probably at that point be able to buy 4 units. The one bedrooms are renting for $700+ and the 2 bedrooms are renting for $900+. I think this thing can be fixed but it will take time. I’m not sure if someone can buy out this complex because these are individually owned and are going to be sold 1 at a time. There are some serious risk involved, but at a low enough price it might be worth it. I also think that when the price becomes more enticing there will be enough investors to make this work.

[recordsclerk]

I would have to agree with what everyone else is saying about Section 8. I do like the fact that they know that they have a good thing going, so they do tend to stay out of trouble and keep the unit/house in decent shape. There is a yearly inspection and depending on the inspector, you usually fail during the first inspection. They get you for things you would have never thought about. They will give a list of failed items that are usually easily remedied. I also like the fact that the tennants stay for longer periods of time. My current tennant has been with us for 4 years and we just signed another 2 year lease with them.
The worse thing that I think can happen to an Condo HOA is probably not being able to pay water and insurance. There is a complex that I have been following and there are only 7 people paying out of 72 units. They have no reserves and owe $5K for a pumbling job. There is still a water leak that they cannot afford to fix. They have not paid the insurance and water for at least the last couple of months. The Management company quit this month and the HOA is on their own. As of a couple of weeks ago, the management company said that the water was to be shut off, but I don’t think that it has happened yet. I wonder what will happen if the water gets shut off. I also wonder what will happen if there is a fire or flood and they don’t have any insurance or money for repairs. Obviously there has not been any routine maintenance for awhile and the gounds have not been attended to. The pool doesn’t look bad, but I don’t think that is has been attended to either. Also the older of the 3 buildings needs a new roof from my observations (I am not a roof specialist, but it just looks really worn out). This complex has 9 units available and there are also 2 currently pending. They units available are 40K-70K below market for that area. I will continue to check in on this place because I think at some point in the near future the banks will have to unload these units. If enough people buy into this complex and pay HOA’s everything should begin to get better. I’m sure there will be a couple of special assessments due, but overall I think it will make for a good investment.

[recordsclerk]

I would have to agree with what everyone else is saying about Section 8. I do like the fact that they know that they have a good thing going, so they do tend to stay out of trouble and keep the unit/house in decent shape. There is a yearly inspection and depending on the inspector, you usually fail during the first inspection. They get you for things you would have never thought about. They will give a list of failed items that are usually easily remedied. I also like the fact that the tennants stay for longer periods of time. My current tennant has been with us for 4 years and we just signed another 2 year lease with them.
The worse thing that I think can happen to an Condo HOA is probably not being able to pay water and insurance. There is a complex that I have been following and there are only 7 people paying out of 72 units. They have no reserves and owe $5K for a pumbling job. There is still a water leak that they cannot afford to fix. They have not paid the insurance and water for at least the last couple of months. The Management company quit this month and the HOA is on their own. As of a couple of weeks ago, the management company said that the water was to be shut off, but I don’t think that it has happened yet. I wonder what will happen if the water gets shut off. I also wonder what will happen if there is a fire or flood and they don’t have any insurance or money for repairs. Obviously there has not been any routine maintenance for awhile and the gounds have not been attended to. The pool doesn’t look bad, but I don’t think that is has been attended to either. Also the older of the 3 buildings needs a new roof from my observations (I am not a roof specialist, but it just looks really worn out). This complex has 9 units available and there are also 2 currently pending. They units available are 40K-70K below market for that area. I will continue to check in on this place because I think at some point in the near future the banks will have to unload these units. If enough people buy into this complex and pay HOA’s everything should begin to get better. I’m sure there will be a couple of special assessments due, but overall I think it will make for a good investment.

[recordsclerk]

I would have to agree with what everyone else is saying about Section 8. I do like the fact that they know that they have a good thing going, so they do tend to stay out of trouble and keep the unit/house in decent shape. There is a yearly inspection and depending on the inspector, you usually fail during the first inspection. They get you for things you would have never thought about. They will give a list of failed items that are usually easily remedied. I also like the fact that the tennants stay for longer periods of time. My current tennant has been with us for 4 years and we just signed another 2 year lease with them.
The worse thing that I think can happen to an Condo HOA is probably not being able to pay water and insurance. There is a complex that I have been following and there are only 7 people paying out of 72 units. They have no reserves and owe $5K for a pumbling job. There is still a water leak that they cannot afford to fix. They have not paid the insurance and water for at least the last couple of months. The Management company quit this month and the HOA is on their own. As of a couple of weeks ago, the management company said that the water was to be shut off, but I don’t think that it has happened yet. I wonder what will happen if the water gets shut off. I also wonder what will happen if there is a fire or flood and they don’t have any insurance or money for repairs. Obviously there has not been any routine maintenance for awhile and the gounds have not been attended to. The pool doesn’t look bad, but I don’t think that is has been attended to either. Also the older of the 3 buildings needs a new roof from my observations (I am not a roof specialist, but it just looks really worn out). This complex has 9 units available and there are also 2 currently pending. They units available are 40K-70K below market for that area. I will continue to check in on this place because I think at some point in the near future the banks will have to unload these units. If enough people buy into this complex and pay HOA’s everything should begin to get better. I’m sure there will be a couple of special assessments due, but overall I think it will make for a good investment.

[recordsclerk]

I would have to agree with what everyone else is saying about Section 8. I do like the fact that they know that they have a good thing going, so they do tend to stay out of trouble and keep the unit/house in decent shape. There is a yearly inspection and depending on the inspector, you usually fail during the first inspection. They get you for things you would have never thought about. They will give a list of failed items that are usually easily remedied. I also like the fact that the tennants stay for longer periods of time. My current tennant has been with us for 4 years and we just signed another 2 year lease with them.
The worse thing that I think can happen to an Condo HOA is probably not being able to pay water and insurance. There is a complex that I have been following and there are only 7 people paying out of 72 units. They have no reserves and owe $5K for a pumbling job. There is still a water leak that they cannot afford to fix. They have not paid the insurance and water for at least the last couple of months. The Management company quit this month and the HOA is on their own. As of a couple of weeks ago, the management company said that the water was to be shut off, but I don’t think that it has happened yet. I wonder what will happen if the water gets shut off. I also wonder what will happen if there is a fire or flood and they don’t have any insurance or money for repairs. Obviously there has not been any routine maintenance for awhile and the gounds have not been attended to. The pool doesn’t look bad, but I don’t think that is has been attended to either. Also the older of the 3 buildings needs a new roof from my observations (I am not a roof specialist, but it just looks really worn out). This complex has 9 units available and there are also 2 currently pending. They units available are 40K-70K below market for that area. I will continue to check in on this place because I think at some point in the near future the banks will have to unload these units. If enough people buy into this complex and pay HOA’s everything should begin to get better. I’m sure there will be a couple of special assessments due, but overall I think it will make for a good investment.

[recordsclerk]

I would have to agree with what everyone else is saying about Section 8. I do like the fact that they know that they have a good thing going, so they do tend to stay out of trouble and keep the unit/house in decent shape. There is a yearly inspection and depending on the inspector, you usually fail during the first inspection. They get you for things you would have never thought about. They will give a list of failed items that are usually easily remedied. I also like the fact that the tennants stay for longer periods of time. My current tennant has been with us for 4 years and we just signed another 2 year lease with them.
The worse thing that I think can happen to an Condo HOA is probably not being able to pay water and insurance. There is a complex that I have been following and there are only 7 people paying out of 72 units. They have no reserves and owe $5K for a pumbling job. There is still a water leak that they cannot afford to fix. They have not paid the insurance and water for at least the last couple of months. The Management company quit this month and the HOA is on their own. As of a couple of weeks ago, the management company said that the water was to be shut off, but I don’t think that it has happened yet. I wonder what will happen if the water gets shut off. I also wonder what will happen if there is a fire or flood and they don’t have any insurance or money for repairs. Obviously there has not been any routine maintenance for awhile and the gounds have not been attended to. The pool doesn’t look bad, but I don’t think that is has been attended to either. Also the older of the 3 buildings needs a new roof from my observations (I am not a roof specialist, but it just looks really worn out). This complex has 9 units available and there are also 2 currently pending. They units available are 40K-70K below market for that area. I will continue to check in on this place because I think at some point in the near future the banks will have to unload these units. If enough people buy into this complex and pay HOA’s everything should begin to get better. I’m sure there will be a couple of special assessments due, but overall I think it will make for a good investment.

[recordsclerk]

Section 8 is goverment subsidized housing. Usually you will recieve two payments like you said one from a tennant and one from the goverment both adding up to the total rent ($1440). I agree that $1440 is a lot for a 2/2 in MM, but my friend is getting it. Section allows for a certain amount to be paid per bedroom. I don’t have the current rate sheet, but I think that a 2 bed can rent as a high as $1532. You just have to justify the rent is the fair market value for a certain area to the Section 8 worker assigned to your tennant. About 5 or more years ago section 8 usually gave approval for slightly higher then current rent for a certain area due to having less housing available to Section 8 tennants. Today Section 8 wants the rents to be competitive with other non-section 8 tennants for a certain area. I also have a rental (SFR) 4bd 2ba with Section 8 tennants. Since the rents have come done in my area in the last couple years, I have not been able to raise rents for 4 years. You can go to the Section 8 website if you want to know more info:
http://www.sdhc.org

[recordsclerk]

Section 8 is goverment subsidized housing. Usually you will recieve two payments like you said one from a tennant and one from the goverment both adding up to the total rent ($1440). I agree that $1440 is a lot for a 2/2 in MM, but my friend is getting it. Section allows for a certain amount to be paid per bedroom. I don’t have the current rate sheet, but I think that a 2 bed can rent as a high as $1532. You just have to justify the rent is the fair market value for a certain area to the Section 8 worker assigned to your tennant. About 5 or more years ago section 8 usually gave approval for slightly higher then current rent for a certain area due to having less housing available to Section 8 tennants. Today Section 8 wants the rents to be competitive with other non-section 8 tennants for a certain area. I also have a rental (SFR) 4bd 2ba with Section 8 tennants. Since the rents have come done in my area in the last couple years, I have not been able to raise rents for 4 years. You can go to the Section 8 website if you want to know more info:
http://www.sdhc.org

[recordsclerk]

Section 8 is goverment subsidized housing. Usually you will recieve two payments like you said one from a tennant and one from the goverment both adding up to the total rent ($1440). I agree that $1440 is a lot for a 2/2 in MM, but my friend is getting it. Section allows for a certain amount to be paid per bedroom. I don’t have the current rate sheet, but I think that a 2 bed can rent as a high as $1532. You just have to justify the rent is the fair market value for a certain area to the Section 8 worker assigned to your tennant. About 5 or more years ago section 8 usually gave approval for slightly higher then current rent for a certain area due to having less housing available to Section 8 tennants. Today Section 8 wants the rents to be competitive with other non-section 8 tennants for a certain area. I also have a rental (SFR) 4bd 2ba with Section 8 tennants. Since the rents have come done in my area in the last couple years, I have not been able to raise rents for 4 years. You can go to the Section 8 website if you want to know more info:
http://www.sdhc.org

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