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urbanrealtor
Participant[quote=SD Realtor]Hi Econ –
I did a quick search on the MLS for 92104 under 150k. 28 listings came up and all are attached homes except for 1 detached home on Polk. Now whether they will fetch 1000 a month is something I am not sure of as I am to lazy to run rental rate comps AND work in HOA/Property taxes to calculate the true cap rate. Anyways I would imagine UR was referring to these homes[/quote]
Thats right.
I would also expand the zip to92116 and some very select parts of 92102 (though that is really more like south park).
I am sure of the rental rates because recently, I have been engaged to assist buyer in getting them rented.Like I said that type of equation is harder to match in houses but here are some examples
Here is a conversion project that fell apart halfway through (its at 35th and Meade):
The cheapest 1 bedroom closed at 52k
080042852
The cheapest 2br closed at 80k
086017289
There were about 30 units in this complex that closed at similar prices.In the resale (non-developer) department, here is one currently being rented out for more than 8% Cap.
081018371As far as houses, here is one at 37th and Polk
086036982Here is a house in a nice area west of the 805.
086017417Like I said, the houses are rarer and somewhat more expensive.
However, as investments or homes go, they are not bad deals.
Barring true economic meltdown, they are fairly safe as investements.
All get at least 8% return consistently.
If such a meltdown occurs (no, I don’t buy that the current crisis qualifies) then foreclosure will be the least of our worries.Regarding FHA loans, inspectors rarely ever show up and never after a couple months.
I use these loans pretty exclusively and I have more familiarity than many of the loan officers I deal with (eg: how many lenders understand 203k loans?).
I won’t help anyone do anything sketchy (like lie on a loan app) but I have had a few decide that renting made more sense after they closed on purchase.On a side note:
As an agent, this means one can still make a living but the days of universally enthusiastic buyers and easy lending are way gone. For me this is great because I am better at discussing investment options and offer/negotiation strategies than I am at being a salesman in the classical sense.Participant[quote=SD Realtor]”just make sure you don’t overpay for the house; your monthly payment with 97 – 100% financing, after the write off, should be close to what the property would rent for…”
There’s the rub. Depending on where you want to live there is little to no chance at all that you will finance 97% of the home and your payment will match the rent. If you are going to set that as a parameter then you more then likely will be waiting a long long time at best. [/quote]
No.
Everything I am handling right now is using FHA loans where the loan to value is 96% or more.
Also, several of the neighborhoods I am handling have cap rates (that’s net income over purchase price) of about 8-10%. You are right that this is more rare with houses.
EG: Several properties in North Park or Normal Heights are worth 120-140k. They net rent for 1000/mth or 12000/year. Playing cards right could mean positive cash flow with 4000k of skin in the deal. It means mortgage and combined monthly costs lower than rent.
Participant[quote=SD Realtor]”just make sure you don’t overpay for the house; your monthly payment with 97 – 100% financing, after the write off, should be close to what the property would rent for…”
There’s the rub. Depending on where you want to live there is little to no chance at all that you will finance 97% of the home and your payment will match the rent. If you are going to set that as a parameter then you more then likely will be waiting a long long time at best. [/quote]
No.
Everything I am handling right now is using FHA loans where the loan to value is 96% or more.
Also, several of the neighborhoods I am handling have cap rates (that’s net income over purchase price) of about 8-10%. You are right that this is more rare with houses.
EG: Several properties in North Park or Normal Heights are worth 120-140k. They net rent for 1000/mth or 12000/year. Playing cards right could mean positive cash flow with 4000k of skin in the deal. It means mortgage and combined monthly costs lower than rent.
Participant[quote=SD Realtor]”just make sure you don’t overpay for the house; your monthly payment with 97 – 100% financing, after the write off, should be close to what the property would rent for…”
There’s the rub. Depending on where you want to live there is little to no chance at all that you will finance 97% of the home and your payment will match the rent. If you are going to set that as a parameter then you more then likely will be waiting a long long time at best. [/quote]
No.
Everything I am handling right now is using FHA loans where the loan to value is 96% or more.
Also, several of the neighborhoods I am handling have cap rates (that’s net income over purchase price) of about 8-10%. You are right that this is more rare with houses.
EG: Several properties in North Park or Normal Heights are worth 120-140k. They net rent for 1000/mth or 12000/year. Playing cards right could mean positive cash flow with 4000k of skin in the deal. It means mortgage and combined monthly costs lower than rent.
Participant[quote=SD Realtor]”just make sure you don’t overpay for the house; your monthly payment with 97 – 100% financing, after the write off, should be close to what the property would rent for…”
There’s the rub. Depending on where you want to live there is little to no chance at all that you will finance 97% of the home and your payment will match the rent. If you are going to set that as a parameter then you more then likely will be waiting a long long time at best. [/quote]
No.
Everything I am handling right now is using FHA loans where the loan to value is 96% or more.
Also, several of the neighborhoods I am handling have cap rates (that’s net income over purchase price) of about 8-10%. You are right that this is more rare with houses.
EG: Several properties in North Park or Normal Heights are worth 120-140k. They net rent for 1000/mth or 12000/year. Playing cards right could mean positive cash flow with 4000k of skin in the deal. It means mortgage and combined monthly costs lower than rent.
Participant[quote=SD Realtor]”just make sure you don’t overpay for the house; your monthly payment with 97 – 100% financing, after the write off, should be close to what the property would rent for…”
There’s the rub. Depending on where you want to live there is little to no chance at all that you will finance 97% of the home and your payment will match the rent. If you are going to set that as a parameter then you more then likely will be waiting a long long time at best. [/quote]
No.
Everything I am handling right now is using FHA loans where the loan to value is 96% or more.
Also, several of the neighborhoods I am handling have cap rates (that’s net income over purchase price) of about 8-10%. You are right that this is more rare with houses.
EG: Several properties in North Park or Normal Heights are worth 120-140k. They net rent for 1000/mth or 12000/year. Playing cards right could mean positive cash flow with 4000k of skin in the deal. It means mortgage and combined monthly costs lower than rent.
Participant[quote=jficquette][quote=urbanrealtor][quote=jficquette][quote=urbanrealtor][quote=jficquette]
LOL so you are going to vote for Castro Jr even though you are libertarian?? Socialism is the opposite of libertarianism. Something doesn’t add up with your post.
John
[/quote]
Sorry dude his views are not unique.
Also, its a bit hyperbolic to call him Castro Jr.
If you have a better pick of the 2, who would it be?
Cuz most people think McCain sucks.
[/quote]Pick between Castro and Obama? Probably Castro since at least he is honest about his views.
John[/quote]
I was saying between McCain and Obama but your assertion that Castro would be better than Obama really gives a clue as to how seriously you take yourself.[/quote]
No it shows what Obama really is and your’re too blind to see it.
John
[/quote]
I have lived under a liberal president and visited communist countries (Cuba, in fact). The assertion that being liberal is to the left of Communist is ignorant and not supportable.John you just say stuff that is so crazy that you can’t be taken seriously.
Participant[quote=jficquette][quote=urbanrealtor][quote=jficquette][quote=urbanrealtor][quote=jficquette]
LOL so you are going to vote for Castro Jr even though you are libertarian?? Socialism is the opposite of libertarianism. Something doesn’t add up with your post.
John
[/quote]
Sorry dude his views are not unique.
Also, its a bit hyperbolic to call him Castro Jr.
If you have a better pick of the 2, who would it be?
Cuz most people think McCain sucks.
[/quote]Pick between Castro and Obama? Probably Castro since at least he is honest about his views.
John[/quote]
I was saying between McCain and Obama but your assertion that Castro would be better than Obama really gives a clue as to how seriously you take yourself.[/quote]
No it shows what Obama really is and your’re too blind to see it.
John
[/quote]
I have lived under a liberal president and visited communist countries (Cuba, in fact). The assertion that being liberal is to the left of Communist is ignorant and not supportable.John you just say stuff that is so crazy that you can’t be taken seriously.
Participant[quote=jficquette][quote=urbanrealtor][quote=jficquette][quote=urbanrealtor][quote=jficquette]
LOL so you are going to vote for Castro Jr even though you are libertarian?? Socialism is the opposite of libertarianism. Something doesn’t add up with your post.
John
[/quote]
Sorry dude his views are not unique.
Also, its a bit hyperbolic to call him Castro Jr.
If you have a better pick of the 2, who would it be?
Cuz most people think McCain sucks.
[/quote]Pick between Castro and Obama? Probably Castro since at least he is honest about his views.
John[/quote]
I was saying between McCain and Obama but your assertion that Castro would be better than Obama really gives a clue as to how seriously you take yourself.[/quote]
No it shows what Obama really is and your’re too blind to see it.
John
[/quote]
I have lived under a liberal president and visited communist countries (Cuba, in fact). The assertion that being liberal is to the left of Communist is ignorant and not supportable.John you just say stuff that is so crazy that you can’t be taken seriously.
Participant[quote=jficquette][quote=urbanrealtor][quote=jficquette][quote=urbanrealtor][quote=jficquette]
LOL so you are going to vote for Castro Jr even though you are libertarian?? Socialism is the opposite of libertarianism. Something doesn’t add up with your post.
John
[/quote]
Sorry dude his views are not unique.
Also, its a bit hyperbolic to call him Castro Jr.
If you have a better pick of the 2, who would it be?
Cuz most people think McCain sucks.
[/quote]Pick between Castro and Obama? Probably Castro since at least he is honest about his views.
John[/quote]
I was saying between McCain and Obama but your assertion that Castro would be better than Obama really gives a clue as to how seriously you take yourself.[/quote]
No it shows what Obama really is and your’re too blind to see it.
John
[/quote]
I have lived under a liberal president and visited communist countries (Cuba, in fact). The assertion that being liberal is to the left of Communist is ignorant and not supportable.John you just say stuff that is so crazy that you can’t be taken seriously.
Participant[quote=jficquette][quote=urbanrealtor][quote=jficquette][quote=urbanrealtor][quote=jficquette]
LOL so you are going to vote for Castro Jr even though you are libertarian?? Socialism is the opposite of libertarianism. Something doesn’t add up with your post.
John
[/quote]
Sorry dude his views are not unique.
Also, its a bit hyperbolic to call him Castro Jr.
If you have a better pick of the 2, who would it be?
Cuz most people think McCain sucks.
[/quote]Pick between Castro and Obama? Probably Castro since at least he is honest about his views.
John[/quote]
I was saying between McCain and Obama but your assertion that Castro would be better than Obama really gives a clue as to how seriously you take yourself.[/quote]
No it shows what Obama really is and your’re too blind to see it.
John
[/quote]
I have lived under a liberal president and visited communist countries (Cuba, in fact). The assertion that being liberal is to the left of Communist is ignorant and not supportable.John you just say stuff that is so crazy that you can’t be taken seriously.
Participantyou could ask someone who deals in them.
SD, sdr, or me for example.
Alternatively, you could contact the agents representing the banks’ interest and see what happens.
Participantyou could ask someone who deals in them.
SD, sdr, or me for example.
Alternatively, you could contact the agents representing the banks’ interest and see what happens.
Participantyou could ask someone who deals in them.
SD, sdr, or me for example.
Alternatively, you could contact the agents representing the banks’ interest and see what happens.
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