re: Solana Beach… even 200x rent (which is considered a bubble in most areas) puts that property’s fair market value at $700K. A far cry from its asking price!

Too bad it wasn’t on the market for rent a few weeks ago or I might have opted to lease it! It’s a beautiful place. But really, I am happy with our (slightly older, about the same size, a bit cheaper per month) rental here in Solana Beach.

-Erica

The other might be “vulture” funds. However do they have the expertise and diligence to make sure the unit gets rented to someone who will not wreck the place?

I just think that the land value might be more than some of the prices being paid but can the buyers actually sustain the prices they paid.

BTW I guess Janae did not need to leave town after all.

The thought of prime fixed-rate mortgage holders going late on their payments (quadrupled in two years) is a shocker, but I think I can top it.

The local association of realtors has published the latest election results:

2010 OFFICERS & DIRECTORS

Director, District 1: Maria Weiss

Director, District 3: Portia Metras

Director, District 5: Jenae Politovich Peckham

Director, District 7 : Diane Conaway

Director, District 9 Larry Wight

That’s right the same Jenae that was responsible for burning lenders for close to $4 million got elected to lead us into the future!!!!!!!!!!!!!!!

http://www.sacbee.com/static/weblogs/real_estate/archives/2009/07/new-face-of-the.html

You’re forgetting property tax — another $1500 a month! And it’s not deductible, because you are deep into AMT territory at that point.

And this property is priced a lot better than other nearby listings. There’s a near-teardown on Granados asking $1.1m, and the small old house on Canyon that’s taken a year to go from $2.1m to $1.7m. Then the strip-mall-view condos on Rios asking $1.6m. The price to rent ratio is absolutely out of control in the beach areas.

$1.5M financed 80% at current rates translates to $7K a month, double the rent they’re asking. Doesn’t that effectively set a drastically lower comp? I mean, why would I buy a house (and put up $300K in cash) just to pay twice as much monthly, especially when there’s a greater chance of depreciation than appreciation?

No question why you were inundated with potential tenants.

The sellers are believers though, listing originally at $1.699, as a similar-sized house was selling down the street for $1,706,500.

But no offers, so we lowered early and often, and after four weeks we’re down to $1,499,000.

But no offers.

The house is paid off, so there’s an income potential that they’re going to utilize. They advertised it for a reasonable $3,500/month rental, and got inundated with applicants.

I took the sign down because I was getting so many tenant calls!

They have a leading candidate, so we’ll probably cancel this week once they ink the lease.