Buying an investment condo (rentals, evictions, homes)

[shmoov_groovzsd]

Originally Posted by greenlite

Simple answers: Ill be moving to the Pacific NW soon so it'll be slightly easier to manage. Thats why I need a new condo so it doesnt have a lot of issues, the maintenance can take care of most issues unless a tenant fs up big.
Looking for cash flow to cover or help with the mortgage and bring a decent amount once I pay it off.

So now its a new condo you want? I never saw that mentioned as being important in any of your posts.

New doesn't mean no issues, but its likely someone that has other properties in other states probably knows that already.

Cash flow to cover or help with the mortgage? By all means the quintessential definition of cash flow.

Sounds like you got this nailed. Good luck!

[greenlite]

Tenants would need to be screened carefully. If they bail, u got their security deposit at least. If they are college kids, then they can get a co signer who will be responsible for the lease if they bail. If they are serious people with a serious job without a co signer, most likely they won't behave this way if they are paying 2k rent.
I'm open to a new or newer condo or a townhome.

[Pedro2000]

Originally Posted by greenlite

Tenants would need to be screened carefully. If they bail, u got their security deposit at least. If they are college kids, then they can get a co signer who will be responsible for the lease if they bail. If they are serious people with a serious job without a co signer, most likely they won't behave this way if they are paying 2k rent.
I'm open to a new or newer condo or a townhome.

You really need to do more research about San Diego.

San Diego is filled with 2 Bedroom places with 2+ people living in them. I know plenty of places that have 4 people in them, except 2 of the people aren't on a lease and the landlords don't know about it. But a $2K per month rent split between 4 people becomes about $500 per month. And in a place where there are many many people under the age of 26, this is kind of the norm in most places. It's California. There are many young people who move here or live here. Older people usually wind up moving out of state for jobs or they buy a house in Carmel Valley or someplace else.

You aren't going to find too many single 36 year old professionals with a $100K salary who want to live in a 2 bedroom condo in La Mesa for $2K per month.

If you buy a condo in places that pretty much have nothing but college aged kids (in college or not) and you make it impossible for them to rent, you'll have a condo that nobody rents. If you want to buy a condo in places like La Jolla, Del Mar, Solana Beach, you're either going to find some crappier place near the 5 or you'll wind up spending 2 million bucks for a nice place near the ocean.

And the reality is, do you have A million bucks in cash to put down on a Condo near the beaches? Any good deals in La Jolla, Del Mar, Solana Beach, Encinitas, etc are pretty much bought by cash buyers these days. I've seen plenty of houses and condos go on the market one day and be sold the next day. And be sold for more than the asking price. And many times somebody paid cash. It's just the way it is in San Diego.

The places that seem to stick around for awhile, usually have some issues with them. And have you done enough research in the San Diego area because there aren't a ton of new condos or town homes being built and the housing market has started to decline. Not exactly a smart buy if you want it to be an investment.

[greenlite]

Originally Posted by Pedro2000

You really need to do more research about San Diego.

San Diego is filled with 2 Bedroom places with 2+ people living in them. I know plenty of places that have 4 people in them, except 2 of the people aren't on a lease and the landlords don't know about it. But a $2K per month rent split between 4 people becomes about $500 per month. And in a place where there are many many people under the age of 26, this is kind of the norm in most places. It's California. There are many young people who move here or live here. Older people usually wind up moving out of state for jobs or they buy a house in Carmel Valley or someplace else.

You aren't going to find too many single 36 year old professionals with a $100K salary who want to live in a 2 bedroom condo in La Mesa for $2K per month.

If you buy a condo in places that pretty much have nothing but college aged kids (in college or not) and you make it impossible for them to rent, you'll have a condo that nobody rents. If you want to buy a condo in places like La Jolla, Del Mar, Solana Beach, you're either going to find some crappier place near the 5 or you'll wind up spending 2 million bucks for a nice place near the ocean.

And the reality is, do you have A million bucks in cash to put down on a Condo near the beaches? Any good deals in La Jolla, Del Mar, Solana Beach, Encinitas, etc are pretty much bought by cash buyers these days. I've seen plenty of houses and condos go on the market one day and be sold the next day. And be sold for more than the asking price. And many times somebody paid cash. It's just the way it is in San Diego.

The places that seem to stick around for awhile, usually have some issues with them. And have you done enough research in the San Diego area because there aren't a ton of new condos or town homes being built and the housing market has started to decline. Not exactly a smart buy if you want it to be an investment.

Ok, what if u buy a 1 bd condo then? It will have only one renter then.

[greenlite]

So is La Jolla the best option? I see some older condos in my price range there.
What are some suburbs to consider? Besides Solana Beach and Del Mar.

[hitman619]

Originally Posted by greenlite

So is La Jolla the best option? I see some older condos in my price range there.
What are some suburbs to consider? Besides Solana Beach and Del Mar.

Encanto, City Heights,
Lincoln Acres, are some areas you should check out.

[Marv101]

Just the existence of HOA fees to begin with makes condos a very questionable investment, on top of the propensity of lawsuits, and that's certainly the case up here in LA as well as Palm Springs or anywhere else.

Buying a duplex for investment purposes makes a lot more sense than buying a condo; live in one side and rent out the other, or buy one in a top-notch neighborhood.

[greenlite]

Originally Posted by Marv101

Just the existence of HOA fees to begin with makes condos a very questionable investment, on top of the propensity of lawsuits, and that's certainly the case up here in LA as well as Palm Springs or anywhere else.

Buying a duplex for investment purposes makes a lot more sense than buying a condo; live in one side and rent out the other, or buy one in a top-notch neighborhood.

yea, but then u gon have all these people there, more people, more problems, as was said above

[greenlite]

Do areas like La Jolla rise in price every yr? Or its better to invest in lower level areas?

[oddstray]

Originally Posted by greenlite

Ok, what if u buy a 1 bd condo then? It will have only one renter then.

You're dreaming if you think having only one bedroom will limit the inhabitants to one person.