[airics]

i would like to know what the average credit score of a american citizen is now.. with all the foreclosures, it had to drop....very scary... we are now declining 680+ for a car loan if you are extended...

[rpachigo]

"Rents are stable and have not moved significantly in the last six months...so I suspect they will not. LIkely the housing thing is driving the rental thing. The rental volume is 10% or more above last year."

Have you checked craigslist lately? 3 bd/2 ba houses going for $1200 and up are now at 1000. 2 bd/2 ba can be found easily at 800 or so and there's a dime a dozen. The ones that are higher than that will sit and sit until the rents are reduced. Rent Deflation is definitely here - this is the last piece of the housing bubble to fall. This will affect any investor trying to pencil out a unit to buy for rental income. So many investors competing with each other has driven the rental prices down tremendously.

[airics]

scary thing is that how many of those $800 rentals are in foreclosure?

[olecapt]

Originally Posted by rpachigo

"Rents are stable and have not moved significantly in the last six months...so I suspect they will not. LIkely the housing thing is driving the rental thing. The rental volume is 10% or more above last year."

Have you checked craigslist lately? 3 bd/2 ba houses going for $1200 and up are now at 1000. 2 bd/2 ba can be found easily at 800 or so and there's a dime a dozen. The ones that are higher than that will sit and sit until the rents are reduced. Rent Deflation is definitely here - this is the last piece of the housing bubble to fall. This will affect any investor trying to pencil out a unit to buy for rental income. So many investors competing with each other has driven the rental prices down tremendously.

The MLS maintains a leasing track. It is not total but it is a reasonable guide for the larger rentals. Presently the rate is about 1600 a month. The total this year has already exceeded last year. Rental rates are stable to up a little. Rentals go out at about 90% of the rate at which they come in which is an all time high. There are about 100 days of inventory.

None of this is new. Been that way for a while. It is why I recommend investors stick to little 3/2s as they are the most rentable. At this point it may also be that the really cheap condos are easily rented as well. The heavy action in low cost condos tends to indicate that investors agree.

[airics]

what does the cheap condo cost and what is the avg that it is rented for?

[olecapt]

Originally Posted by airics

what does the cheap condo cost and what is the avg that it is rented for?

Getting some 3/2s around 50 or 55K. Rent for 750 to 800.

[airics]

are these conversions?

[olecapt]

Originally Posted by airics

are these conversions?

Yes. There may be some real cheap conventionals but likely in lesser neighborhoods.

[kimba01]

How does one know whether they are conversions or not?

[olecapt]

Originally Posted by kimba01

How does one know whether they are conversions or not?

You can tell from the Assessors records. If the place was built in 1998 and the unit first sold in 2004 it is a conversion. You can also track back the ownership and see the coversion take place.

The Realtor listing form also has a data entry that says conversion. So if you see one of those you know.