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spdrun
ParticipantEven in cities like NYC and Paris where many of our friends rent out, it’s easy to bypass rules if you know what you’re doing. You can let guests know ahead of time and also the MOST important person is typically the doorman.
If there is a doorman. Plenty of nicer non-doorman buildings in NY.
This being said, if the building is a co-op which doesn’t allow subleasing and the board gets a bug up its collective butthole about you, you could conceivably lose the place. Highly unlikely – they’re more likely to fine you or send you a nasty letter signed by an atty – but theoretically possible. Co-op isn’t real property: you’re buying shares in a nonprofit that owns the building and leasing your apt back for the cost of common charges, basically.
ParticipantMortgaged buyers: appraisal/comps will be a problem, unless $395k was really under market.
Cash buyers: “Are you out of your f**king mind, you bought this place for $150k less two months ago?”ParticipantI know people who rent out their NYC apartments when they travel. Via Craigslist, not VRBO or AirBnB … why the hell would one pay someone a cut to do what Craigslist does for free? Generally not super short term, but more like a month in summer. (Theoretically the legal minimum in NY.)
Truly personal/valuable items generally aren’t that bulky — put important papers, cameras, keys, jewelry, laptops, etc into a few Wawa crates and dump them into basement storage for the duration. Sheets/towels: a place can be rented without any of that. Renters bring their own bedding, shampoo, toiletries, and towels. Since they’re paying about 1/3 to 1/2 of what a hotel would cost, they’re more than happy to do so.
ParticipantGood luck finding the same deal today…
It was active less than a month ago. Two things similar to the condo that I have in the SS process (different area) just popped up about 2 wks ago, one with an asking price less than my accepted offer (but in worse shape). Offered somewhat below ask on both, didn’t get either, but the more offers I have out there, the better.
(I didn’t get my accepted offer in CA instantly either — was outbid, then they came back to me 2 mos later.)
ParticipantThere we have it. Those are the area spdrun considers decent.
One of several.
ParticipantHere’s one condo listed at $125k that I saw last month, but didn’t make an offer on. HOA = $265/mo, 2 bedroom, 2.5 bath, decently maintained complex.
http://www.trulia.com/property/3105956930-3916-60th-St-105-San-Diego-CA-92115
There have been others.
ParticipantBearishgurl – agreed, the neighborhood doesn’t make the tenant: My family has a 2 bedroom townhouse condo in a very nice town in NJ. We rented to a lady who graduated from Hahvahd and was paralegalling for a known local law firm. Problem was that she never washed the dishes, just left dirty dishes in the sink for weeks. Not to mention, never vacuumed the crumbs off of the kitchen floor.
Can you say, la Cucaracha, la Cucaracha? Took a few months of traps and borax to finally get the buggers to drop dead. This was pretty much the worst tenant experience I’ve had to deal with. Granted, really wasn’t that bad as compared to other horror stories I’ve heard.
ParticipantCash flow calculations on paper rarely match reality as you move into more questionable areas unless you are intimately experienced in those neighborhoods.
Actually, the areas in my question aren’t particularly questionable. Boring with smallish condos, maybe; but that’s OK.
As far as questionable areas, find one that borders a non-questionable area. One NJ town that I’m interested in has an area that’s considered less desirable, but borders on two fairly tony towns. You can walk to the train stations (fast train to NYC) and downtowns in either of those two towns in 10 min. Whole Foods within walking distance, the whole 9.
And taxes are about 50-60% lower than in either of the two “nice” towns. Assuming a decently kept property, it’s actually fairly easy to rent to single younger professionals who don’t care about school quality.
Participantflu – Decent area, but would prefer NOT to send people there at present since it appears to be a bit off the radar 🙂
ParticipantI’ve put at least five offers in the $100k range in over the past few months. One has been accepted for sure and is working its way through the SS process. Cap will be 7.5% minimum, and it’s a safe though slightly boring area. You have to be ready to jump and ask for paperwork as soon as the things come on the market, though.
ParticipantWhy not look at condos in the $150-400k range as rentals? You’re not living in them, so as long as they can cash-flow well, you don’t need to be picky.
ParticipantPersonally I think people are idiots for investing cash in homes when the lending industry is giving away money but what the hell do I know and does it even matter?
You’re ass-u-me-ing that the money truly is cash, not pulled out of another property that was bought for cash, then re-fi’ed.
ParticipantI don’t think they will allow a significant downturn for a while yet, they can’t afford it.
Unless you think that the last downturn was “allowed’ to happen, I don’t think that cyclic things like that are within the control of government — they sometimes just happen.
ParticipantIff — the USD has actually gone up WRT most currencies in the last 6-12 months, despite Zimbabwe Ben-Shalom’s worst efforts to damage it. Buying a home outright is still risky — if it drops in price, you’ve lost money that could otherwise have been spent making other money.
As far as a standard offer vs cash, so the broker would like you to believe.
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