[want a good deal]

A big factor for me would be the tax write offs for rental property. Do you know how much you can write it down every year. I am in a high tax bracket and thats why I would treat it like an IRA. Its a way to save money tax free and then when I retire I can take the income either by a sale or continuing to rent at a lower tax bracket. The problem with the REIT is that I dont get to stay downtown when my property is empty, which is a big plus for me. I will get value out of my place either rented or not to some degree. I plan to buy multiple downtown condos in different price ranges and areas but I plan to stay away from the high end. Does it make sense to buy in the middle of the building with some view but not so much I have to pay the big premium. Seems like these are the best because the rental price would still be reasonable but someone will not get the bottom of the barrel place. I dont want renters who are just looking for the cheapest place they can find. Also want buildings with reasonable ammenities but not so much that the HOA is over $600.
Thanks again!

[want a good deal]

SD Realtor – Thanks so much for the info. I already own a McMansion and I am very happy with it. Of course I own it at half what it is worth today. Which even if it had gone up double again I wouldnt sell it because I dont want to move around, its not worth it to me. I am looking to diversify my assets now and have been thinking about downtown condos. I know they have to go down quite a bit more before they are worth investing in but I think downtown will eventually be a great market and good investment. Also, because I live in North County when one of my condos is not rented I will use it for a change of pace or let friends and family use it. My main question is do I have to wait before it is a positive cash flow situation, which seems doubtful, or are there situations that make sense to be slightly negative. I am going to buy outright or put a large amount down on the properties so I will have little risk of carrying costs overwhelming me if things go bad. What is the downside of downtown condos that you might know about. Thanks again.

[want a good deal]

I hear a lot about the loans being a problem but does anyone have any real evidence that is true.

[want a good deal]

SD

That would be a good data point to see how the credit crunch is affecting the market. How many of those will fall out because of lack of funding. Do people normally get qualified and lock a rate before making the deal or afterwards?

[want a good deal]

There must be jumbo loans available or nothing would be selling and as you can see on sdlookup lots of stuff in that range sells every day.

[want a good deal]

Another good thing is this market sucked up a lot of the good land to build on so next time there will be less to start with possibly making the next boom even better.

[want a good deal]

Finally, thanks for some intelligent input on my scenario, that is exactly what I need. This is also why I think this is a healthy correction that will lead to an excellent long term opportunity. The market will go down forcing foreclosures and new renters who most likely will stay in San Diego. Lets face it there is a reason people pay this much to live here. It is one of the best places to live imo. It will also give people on the sidelines and those who would like to live here but could not afford it before to move and either rent or buy creating a nice future rebound in the market. It is a necessary cycle to create opportunity for those brave enough to step in when nobody else wants to. When is the only question. IMO it will take ten years before the bottom feeders are rewarded. Manage your money well and try not to become a casualty along the way. Geronimo!!!!!

[want a good deal]

What are those breakdowns normally at. Is this something new or has it been like that for awhile.

[want a good deal]

jf

I am going to pay cash, just like if I put money in my IRA. The only risk is I buy it and cant rent it out. Even then my only losses will be the interest i am losing on the money and the expenses of ownership. Hmmm guess then I will call it my second home!! Always an excuse out there for a bad investment.

[want a good deal]

If I can buy a condo and rent it out and break even after all my expenses then thats a no brainer no matter what the condo will be worth in a year or two. My profit will be the tax savings and eventual profit on the place. As well as preparing for my retirement. I view it as I do my IRA. It will be income for retirement that will be taxed at a lower rate than I pay now. I am in the highest tax bracket so unless they get stupid on taxes, which is a possibility, I will pay less on the profits when I retire. Now its going to have to go much lower to be able to break even on rental property so I dont anticipate buying anytime soon but I think now is the time to do my research and be prepare in a year or two when it is a good time.

[want a good deal]

LOL Well I dont have a boat or extra cars so I hope my house doesnt go down another 500k or I’ll have to buy some of that stuff with my credit cards (which have no balance) so I can sell them to pay my mortgage. Oh wait, I have plenty of money because I am not a MORON who buys stuff I cant afford. Gee, give me a break, what a story. Really sums it up why we are in this mess to start with.

[want a good deal]

what is the zip code for that area.

[want a good deal]

Okay, thanks. Guess if I thought about it for a minute I could have figured that out. If that really comes to fruition then the upcoming sales figures are going to astound people. There will be a huge drop in sales causing even more problems and more foreclosures and so on. Maybe thats why there is so much talk about a bail out. Because the big wigs know it could get so ugly even people on here will be amazed how bad the market gets. No, thats not possible, everyone on here already thinks houses will be 75k in a month.

[want a good deal]

Okay, you people are losing touch with the question. It is about what is the right price to buy at vs the rental price of the unit. No particular unit, just rental condos in general. And as far as declining rental prices that may be but there is a level that makes sense. I already own a home and realize its going down before my eyes but I have to have a place to live and so does everyone else. Now I want to know how to profit off those people who want to rent. There will be a price point that makes sense and it will probably be far above what most of you think. If rental property didnt compute out they wouldnt build apartments. Intelligent feedback appreciated.

[want a good deal]

Put in an offer at $259k. You might be surprised! Still to much probably but its a nice area and convenient access to the freeways. I used to live across the street and loved the area.

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