[SD Realtor]

I think Santa Luz will continue to tighten up due to many reasons. One of them will be tightening lending standards and a reduction in the jumbo limit. Additionally higher rates really put pressure on homes like those priced in Santa Luz. You have a nice area with high fees, also you have alot of speculators including realtors that bought there several years ago. They are all feeling pinched and I believe will continue to feel pain as we move forward in the next few years. If rates for really high you may see some very nice deals there. I still view it as high risk compared to other neighborhoods.

It is a very nice place though.

Earlyretirement I would advise you to drive out there and check it out. Alot of times even when you can see the power lines from google earth, you cannot get the perspective and the feel for them.

[SD Realtor]

I think Santa Luz will continue to tighten up due to many reasons. One of them will be tightening lending standards and a reduction in the jumbo limit. Additionally higher rates really put pressure on homes like those priced in Santa Luz. You have a nice area with high fees, also you have alot of speculators including realtors that bought there several years ago. They are all feeling pinched and I believe will continue to feel pain as we move forward in the next few years. If rates for really high you may see some very nice deals there. I still view it as high risk compared to other neighborhoods.

It is a very nice place though.

Earlyretirement I would advise you to drive out there and check it out. Alot of times even when you can see the power lines from google earth, you cannot get the perspective and the feel for them.

[SD Realtor]

I think Santa Luz will continue to tighten up due to many reasons. One of them will be tightening lending standards and a reduction in the jumbo limit. Additionally higher rates really put pressure on homes like those priced in Santa Luz. You have a nice area with high fees, also you have alot of speculators including realtors that bought there several years ago. They are all feeling pinched and I believe will continue to feel pain as we move forward in the next few years. If rates for really high you may see some very nice deals there. I still view it as high risk compared to other neighborhoods.

It is a very nice place though.

Earlyretirement I would advise you to drive out there and check it out. Alot of times even when you can see the power lines from google earth, you cannot get the perspective and the feel for them.

[SD Realtor]

I think Santa Luz will continue to tighten up due to many reasons. One of them will be tightening lending standards and a reduction in the jumbo limit. Additionally higher rates really put pressure on homes like those priced in Santa Luz. You have a nice area with high fees, also you have alot of speculators including realtors that bought there several years ago. They are all feeling pinched and I believe will continue to feel pain as we move forward in the next few years. If rates for really high you may see some very nice deals there. I still view it as high risk compared to other neighborhoods.

It is a very nice place though.

Earlyretirement I would advise you to drive out there and check it out. Alot of times even when you can see the power lines from google earth, you cannot get the perspective and the feel for them.

[SD Realtor]

heheheheh… I want that one as well. Nice place for sure.

Have you guys considered renting for awhile when you first come out. My advice to anyone relocating is to rent for awhile to get a feel for the city before just taking the plunge. Alternately if you are already very familiar with a particular area or neighborhood then that would be an exception to the rule. However based on your query it doesn’t seem like you are all that familiar or have alot of first hand experience there. San Diego does have an abundance of great private schools so you should not have any problems with that.

Anyways, I was just throwing out the rent first question because I think it makes alot of good sense. People do not like a double move but before you plunk down a fortune on a home, it would be nice for you guys to have your feet on the ground here and have some time under your belt.

[SD Realtor]

heheheheh… I want that one as well. Nice place for sure.

Have you guys considered renting for awhile when you first come out. My advice to anyone relocating is to rent for awhile to get a feel for the city before just taking the plunge. Alternately if you are already very familiar with a particular area or neighborhood then that would be an exception to the rule. However based on your query it doesn’t seem like you are all that familiar or have alot of first hand experience there. San Diego does have an abundance of great private schools so you should not have any problems with that.

Anyways, I was just throwing out the rent first question because I think it makes alot of good sense. People do not like a double move but before you plunk down a fortune on a home, it would be nice for you guys to have your feet on the ground here and have some time under your belt.

[SD Realtor]

heheheheh… I want that one as well. Nice place for sure.

Have you guys considered renting for awhile when you first come out. My advice to anyone relocating is to rent for awhile to get a feel for the city before just taking the plunge. Alternately if you are already very familiar with a particular area or neighborhood then that would be an exception to the rule. However based on your query it doesn’t seem like you are all that familiar or have alot of first hand experience there. San Diego does have an abundance of great private schools so you should not have any problems with that.

Anyways, I was just throwing out the rent first question because I think it makes alot of good sense. People do not like a double move but before you plunk down a fortune on a home, it would be nice for you guys to have your feet on the ground here and have some time under your belt.

[SD Realtor]

heheheheh… I want that one as well. Nice place for sure.

Have you guys considered renting for awhile when you first come out. My advice to anyone relocating is to rent for awhile to get a feel for the city before just taking the plunge. Alternately if you are already very familiar with a particular area or neighborhood then that would be an exception to the rule. However based on your query it doesn’t seem like you are all that familiar or have alot of first hand experience there. San Diego does have an abundance of great private schools so you should not have any problems with that.

Anyways, I was just throwing out the rent first question because I think it makes alot of good sense. People do not like a double move but before you plunk down a fortune on a home, it would be nice for you guys to have your feet on the ground here and have some time under your belt.

[SD Realtor]

heheheheh… I want that one as well. Nice place for sure.

Have you guys considered renting for awhile when you first come out. My advice to anyone relocating is to rent for awhile to get a feel for the city before just taking the plunge. Alternately if you are already very familiar with a particular area or neighborhood then that would be an exception to the rule. However based on your query it doesn’t seem like you are all that familiar or have alot of first hand experience there. San Diego does have an abundance of great private schools so you should not have any problems with that.

Anyways, I was just throwing out the rent first question because I think it makes alot of good sense. People do not like a double move but before you plunk down a fortune on a home, it would be nice for you guys to have your feet on the ground here and have some time under your belt.

[SD Realtor]

Hi Saiine. What I meant that the numbers were not right was that I didn’t know that you had all those items I mentioned factored in.

So roughly you have

Mortgage payment + HOA + estimate for annual repairs + cost of vacancy + property tax + HOA

MINUS

Rental Income

to get your cash flow.

So if your numbers included all of those items then they are okay, I am not sure if they did or not. Now I also said roughly because those are the items that just came to mind, I may have missed one or two.

Now this is only with reference to cash flow. On the flip side the benefits are depreciation and you can expense other things that you could not when the home was owner occupied.

[SD Realtor]

Hi Saiine. What I meant that the numbers were not right was that I didn’t know that you had all those items I mentioned factored in.

So roughly you have

Mortgage payment + HOA + estimate for annual repairs + cost of vacancy + property tax + HOA

MINUS

Rental Income

to get your cash flow.

So if your numbers included all of those items then they are okay, I am not sure if they did or not. Now I also said roughly because those are the items that just came to mind, I may have missed one or two.

Now this is only with reference to cash flow. On the flip side the benefits are depreciation and you can expense other things that you could not when the home was owner occupied.

[SD Realtor]

Hi Saiine. What I meant that the numbers were not right was that I didn’t know that you had all those items I mentioned factored in.

So roughly you have

Mortgage payment + HOA + estimate for annual repairs + cost of vacancy + property tax + HOA

MINUS

Rental Income

to get your cash flow.

So if your numbers included all of those items then they are okay, I am not sure if they did or not. Now I also said roughly because those are the items that just came to mind, I may have missed one or two.

Now this is only with reference to cash flow. On the flip side the benefits are depreciation and you can expense other things that you could not when the home was owner occupied.

[SD Realtor]

Hi Saiine. What I meant that the numbers were not right was that I didn’t know that you had all those items I mentioned factored in.

So roughly you have

Mortgage payment + HOA + estimate for annual repairs + cost of vacancy + property tax + HOA

MINUS

Rental Income

to get your cash flow.

So if your numbers included all of those items then they are okay, I am not sure if they did or not. Now I also said roughly because those are the items that just came to mind, I may have missed one or two.

Now this is only with reference to cash flow. On the flip side the benefits are depreciation and you can expense other things that you could not when the home was owner occupied.

[SD Realtor]

Hi Saiine. What I meant that the numbers were not right was that I didn’t know that you had all those items I mentioned factored in.

So roughly you have

Mortgage payment + HOA + estimate for annual repairs + cost of vacancy + property tax + HOA

MINUS

Rental Income

to get your cash flow.

So if your numbers included all of those items then they are okay, I am not sure if they did or not. Now I also said roughly because those are the items that just came to mind, I may have missed one or two.

Now this is only with reference to cash flow. On the flip side the benefits are depreciation and you can expense other things that you could not when the home was owner occupied.

[SD Realtor]

Just do all of your homework with regards to the numbers you use. Also for safety I would depreciate CL rent numbers by 5-10%. What someone asks for on CL and what they get in reality is much different. I would also add in a few weeks per year for vacancy. Also budget a little bit for repairs and such.

As sdr said in another post there are rental opportunities but you have to be patient and look for deals. He mentioned 1 bedrooms. As an anecdote I bought a 1 bedroom in Mission Valley as a rental in 2003 and held it until 2007. I was cash flow nuetral on it +/- 1/2 percent per year. I bought it for like 152 I think and sold for 200k. Could have sold it for much much more if I would have let it go at the peak. However I was blessed with 1 tenant. Had it rented the week after I bought it and that same tenant ended up buying the home. So that was not a cash flow play but a rather fair appreciation play. Also it helped on my taxes each year because of depreciation. I had other stock losses that were used to offset the cap gains on the home so that was nice as well.

With the amount of financing you are throwing down, it will be challenging to get cash flow opportunities no matter what you buy. Personally if something was cash flowing less then 1% for San Diego RE I would not do it but that is just me. If the appreciation is stellar maybe… but the numbers up there you threw out do not make any sense. Also you need a spread sheet that has all of the costs including HOA and other things I mentioned.

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