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1228 S Abel St, Milpitas, California 95035


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2009 Jun 10, 6:22am   2,592 views  8 comments

by crazydesi   ➕follow (0)   💰tip   ignore  


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1   crazydesi   2009 Jun 10, 6:23am  

Address is 1101 S Main St #117 Milpitas, CA 95035
This looks like a good one with 2b/2b, can easily rent for 1200 to 1500$ per month.
http://www.redfin.com/CA/Milpitas/1101-S-Main-St-95035/unit-117/home/17289693
Is this a good investment for 200,000$

2   Patrick   2009 Jun 10, 6:34am  

Simple test -- what is the % return if you get $1200 per month?

1200 * 12 = 14400

14400 / 200000 = 7.2%

So it's at least a reasonable investment if you can get $1,200 per month. You'll have to pay property tax and maintenance, and probably have a month or two empty while looking for tenants, leaving you with maybe 4.2%, which is not too bad in today's environment.

And maybe you'll get $1,500 rent instead of $1,200. So I'd say it's borderline, maybe a good deal.

3   drsnyder   2009 Jun 10, 9:41am  

Note though that the HOA fees are really high. Redfin lists them at $511. Be sure to find out what the period is for that. Is it monthly? If so, yikes!

Damon

4   Patrick   2009 Jun 11, 2:18am  

Wow, yes, if HOA is $511 montly, that suddenly makes it a bad deal for sure:

(1200 - 511) * 12 = 8268

8268 / 200000 = 4.1%

Take away 3% for taxes etc, and you're down to 1.1%. Might as well buy a CD or Treasury and have much less risk and no work.

5   dont_getit   2009 Jun 16, 11:03am  

Yeah..HOA kills the deal. The bad part is HOA, and the worst part is its not deductible.

6   Serpentor   2009 Jun 18, 5:23pm  

check out google street view, that entire street is one giant stripmall. It looks like the condo is on top of some store?

7   zetabeos   2009 Jun 21, 9:41am  

Is this a good investment for 200,000$

This is actually a new development finalized just last year in 2008. Sale may have been made at peak 2007 ...therefore 2 years. There is a new condo up after the Google street map.
The original prices were around 400K for start as I recall.

Similar condos were under $100/sq ft prior to the RE bubble or $100K ...yes you read that right.. given its location I say more like 150K.... after all its a Condo which is the low end (starter) of housing.

8   zetabeos   2009 Jun 21, 10:02am  

Some 700 new condos are slated to go up on zanker and east tasman about 2 miles down...

https://www.sjpermits.org/permits/permits/general/emailpermitquery.asp?permitnum=PDC06-093

as predicted, the former business parks are being torn down due to excess commercial space and rezoned for residential since we are not adding new jobs here.

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