Stay Put or Sell & Rent in Lancaster? (Palmdale, Tehachapi: low income, section 8) - City-Data Forum

VickyVicky · 07-13-2007, 03:22 PM

Hey all,
I currently am not happy with my neighborhood and want to get out. I wont allow my children to go to the schools here in our zoning and never have. Both kids are getting older, new teens. Good kids but I cant keep them sheltered in doors, I dont want them hanging out around in this neighborhood either or at the park. And due to some Section 8 neighbor problems my own kids dont even like going in the front yard. We resort to activities out and about, beach trips, trips to the city pool, etc to keep them occupied.

So for those who are Lancaster/Palmdale residents....

What do you think is my best option...

Stay put? My mortgage is incredibly low. Yes taxes/ins/mortgage are below $500 a month and own a nice 4 bedroom house but live in not the greatest of areas. Its not the worst, its average but Im wedged now in between 2 Section 8 properties.

So should I sell because I believe the market is going down, it already has been dropping and get what I can before it drops lower? And wait awhile for the foreclosures and drops in home prices to come and rent a house in the meantime in a better area? My situation is I need a home for around $275,000 and right now there are those prices, but pretty much in the same areas... but with the market dropping I may be able to pick something up if I wait awhile and rent.

Talked with a real estate agent and she said there are loads of houses on the market right now and lots of room to negotiate...

Would love any feedback.... Also Im looking into Tehachapi also but as I said should I sell, rent and sit back awhile and then look to buy and have money in the bank when I find a place? Or just stay put and ride it out longer?

greggd · 07-13-2007, 03:52 PM

This is my suggestion.

Take a step back and look where you are. Is the neighborhood improving, how many have left, how many homes are up for sale in the area?

If you have two section 8's on either side, how many more are in the neighborhood. Is it a trend? It could be that the area is losing homeowners and gaining investors for low income properties. If the area is not desirable, then section 8 is a good alternative tenant to an investor.

You could also consider renting the house out under the section 8 program. (3 in a row). Im not familiar with the procedure but if the govt rent will pay your mortgage, it may be worthwhile to hold the property.

Personally, I would speak to a realtor in the area. Have them do an evaluation and give you some numbers and demographic information.

Sorcerer68 · 07-13-2007, 03:57 PM

If it's prudent, consider keeping it as an asset. It sounds like you can get at least minor cash flow at this point. Ask yourself how significantly the neighborhood has changed. Try not to be emotional. This is the difficult part. Owning rental property in a bad neighborhood is more difficult. If it's just a working class neighborhood, that's ok.

NDA · 07-13-2007, 05:12 PM

Section 8 is paying about 1800 for a 3 bedroom. The home has to meet their requirements but it's nothing major, especially if you are there. Most of the stuff is adequate fire exists, fire alarm. If you are paying under 500 you'd make a nice little profit. Last I knew it was 1200 for a 2 bedroom.

You get to screen your tenant, so you can try to get someone who you feel won't destroy your home.

VickyVicky · 07-14-2007, 08:27 AM

Ohhh I dont know if I can bring myself to being a Section 8 Landlord.....

sigh...

My street overall is Original old timers, some middle class working, and then splatterings of Section 8. I know of about 5 that Im almost postivie are Section 8. Then we have a Sober Living House on the block. You go around the corner both directions and its heavy duty Section 8, newer homes then mine, numerous homes for sale. My street has remained one of the nice spots, but as I said. I wont let my kids play around the corner, go to the park up the street, etc. Because of the people hanging out around here. Im also near to the WORST elementary, Jr High and Highschools (Ratings are 2s and 3s API) They are all within walking distance.

My biggest drive to get me out of this spot is my children. They are teens now and I cant give them much freedom to be out and about where we live and they already go to school on the opposite side of town so none of their friends live over here either.

VickyVicky · 07-14-2007, 08:30 AM

I also did want to ad. I have since had in the last 3 yrs,, a brand new roof, brand new NICE dual pane windows, the outside professionally painted, house has been totally re plumbed, brand new shower installed with tile.

And since I have moved in, all of the kitchen and bathroom floors have ceramic tile, trim floor board, chair rail, custom touches added. Its a nice place. If it even went Section 8 I dont think I could bare to see the damage to it. Before I bought the house the previous tenants tried to rent it, the kids parents died, they tried to rent it, and well they gave up and sold it 8 mos later.

greggd · 07-14-2007, 11:33 AM

Based on what you have said. I would sell the house.

Especially with regards to your kids. Sounds like a prison you/your kids are living in.

desertdawgx · 07-14-2007, 01:46 PM

I would sell and move to a better part of town.what crosstreets are you on.i sold my homes 2 years ago for a tidy profit and currently rent.Prices are falling fast and i have seen some 30% off of peak,nothing is selling and i think it is going to get much worse.If you price way below the competition you might be able to sell.I will buy no sooner than fall 08 as prices ill be way down by then.

VickyVicky · 07-14-2007, 03:00 PM

Hey there,
Im around Challenger and Lanc Blvd. Current listings are around $250 for my vintage (1950s home, 4 bedroom 2 bath), already had a realtor bring me comps for the area. One sold for $279 but had a load of upgrades, that one sold in April. But she said on average right now its around $250. All because of the new KB track homes that went in for starting prices of $299.

desertdawgx · 07-14-2007, 05:16 PM

Sell it for 200k and rent 2 years and buy on the west side.I bought those 50's homes for 50k back in 99.Those older homes will sell for 100k in a few years so take the money and wait it out.You said your payment was 500 bucks so i assume you owe less than 100k so take the profit.the runup in prices over the last 5 years was an abberation a money bubble.think of it as winning the lottery.You should have sold last year you could have got over 300k for it and it would have sold fast due to zero mortgage standards getting unqualified people in homes they cannot afford.Those homes are now going into forclosure at an alarming rate. It is very tough for first time buyers to buy now due to very tight credit standards now and sales are off over 50%. I lived through the 90s crash and it took 13 years to get my money back on the house i bought in 89.This will be much worse as prices have gone up 500% on those older homes.the 90 bubble prices only went up 50% and then fell and many people lost their homes,boarded up foreclosures everywhere.This is the mother of all bubbles and will devastate AV RE for many years to come.