Thursday, November 20th, 2008 at 7:10 AM
Investors are Active in Oceanside
Of the 33 houses on Monica Circle, ten have been foreclosed this year, or in foreclosure now. Investors have purchased six of the seven sold, and are active throughout the neighborhood (near the Camp Pendleton back gate in Oceanside, CA 92057). The first house in the video sold by Downey closed for $150,000, the next house (blue-gray) closed for $143,175, and the house next door to that one is still pending, listed for $167,900.
Here’s a 2:02 min youtube video tour:
Posted on Thursday, November 20th, 2008 at 7:10 AM in Foreclosures/REOs | 10 Comments » | 
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Love these video tours Jim. How much do these houses rent for?
Jakob | November 20th, 2008 at 8:12 amIt’s almost like if you price at an number the market is looking for properties sell. Hmmmm… I wonder if the banks have heard of this concept?
shadash | November 20th, 2008 at 9:39 amIf rents are in the $1300 to 1400 range, then we are pretty much back to the 100 x rent for price. . .considering they are at Pendelton, they should have a pretty good rental market from the Marines. . .at this point, the only people with secure jobs!!!
In the early 1990′s I was able to buy a few condos for around 110K and rent them out for $1000 a month in the Bay Area – so I was in cash-flow positive, especially with tax write-offs. . .it may be time to start investing – BUT . . .make sure you are not overpaying – Craigslist has gone “parabolic” on “reduced rents” this week – when I started tracking SD County a year ago, there were 50-60 a day with reduced rents or reduced deposits, etc. Today there are nearly 160 listings . . .lots of desperate and overpriced rentals where people paid too much.
Mark in San Diego | November 20th, 2008 at 2:19 pmThis just in, no foreclosures for 45 days!
http://calculatedrisk.blogspot.com/2008/11/fannie-and-freddie-to-suspend.html
Maybe after 15 months of defaulted homeowners will suddenly cure their mortgages. If the first 14 months don’t work, just give them another month!
Kind of reminds me of women who get beaten by their husbands and keep going back.
BDiego | November 20th, 2008 at 2:24 pmThis guy has guts to compete against himself in such a concentrated area. If he can get the rent he’s looking for, hats off to him for making money in this market.
BDiego | November 20th, 2008 at 4:34 pmWhat do houses like that rent for?
That neighborhood doesn’t look so hot.
JAP | November 20th, 2008 at 5:51 pmI called him to find out what he’s asking, but no response yet. My guess is $1,300, which pencils nicely on a $143,175 purchase price.
They are older homes so the on-going maintenance is a concern. If you had to spend $5,000 per year, it’ll add up.
He’s an all-cash buyer.
Jim the Realtor | November 20th, 2008 at 7:09 pmThanks Mark for the rental data. With 7,000 vacant homes for sale I guess it’s not a surprise that some are resorting to other options – and no surprise either that the denial is still running hot and heavy!
Jim the Realtor | November 20th, 2008 at 7:12 pmIf these areas heavy in foreclosures become rental areas, won’t this reduce both what you can get in terms of rent and what you can ultimately sell the property for?
Also, what about the increase in supply of a particular sort of rental? There are only so many people in the market for a rental of this nature, seems like an increase in supply would reduce future rents.
I suppose I don’t see this working out long term even when the properties are cashing flowing a bit. Once others discover there is money on the table it tends to disappear.
This seems a bit like the prisoner’s dilemma.
Carnap | November 23rd, 2008 at 3:46 amSeem to be more rental sign going up in my area. I wonder if people are thinking they can’t sell them so they’ll try to get what they can from rents.
Jay Jay | November 23rd, 2008 at 9:37 am