I've been tracking the Hard Rock condo hotel in down town San Diego for a couple years now and see studio kings and 1 beds at record low prices due to the entire 420 units being distressed. This single hotel makes up for most of down towns distressed market. For those who are not familiar with these condos, some information can be found here, sandiegoh.com/2011/10/10/downtown-san-diegos-best-investment-property/ or you can type 207 5th ave 92101 in zillow (won't show recent sales)
I have all income and expense reports showing steady 20k return on multiple king studios before yearly 10k tax/HOA expenses which is tax deductable. The minimum ROI is 8% at a 140k purchase price for one of the recent sales. The same units cost 375k when first sold in 2007
I know others are investing in normal condos, singles or multies, but I notice in Cali that the returns are horrible. What I like about the HRH is that the PM company has maintained 70% occupancy rate for years and manages all aspecs of management so no collecting rents with a shot gun and DT SD will remain a hot destination spot for years.
You must pay cash since banks won't lend to them anymore. Ofcourse, once they do start again, prices may increase. If prices continue to fall, ROI looks even better for new buyers and negative equity doesn't matter since it returns 8%, you can technicaly take an 8% drop every year which is unlikely. What is your take on this considering it beats other forms of investment with less skill and time involved?
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I've been tracking the Hard Rock condo hotel in down town San Diego for a couple years now and see studio kings and 1 beds at record low prices due to the entire 420 units being distressed. This single hotel makes up for most of down towns distressed market. For those who are not familiar with these condos, some information can be found here, sandiegoh.com/2011/10/10/downtown-san-diegos-best-investment-property/ or you can type 207 5th ave 92101 in zillow (won't show recent sales)
I have all income and expense reports showing steady 20k return on multiple king studios before yearly 10k tax/HOA expenses which is tax deductable. The minimum ROI is 8% at a 140k purchase price for one of the recent sales. The same units cost 375k when first sold in 2007
I know others are investing in normal condos, singles or multies, but I notice in Cali that the returns are horrible. What I like about the HRH is that the PM company has maintained 70% occupancy rate for years and manages all aspecs of management so no collecting rents with a shot gun and DT SD will remain a hot destination spot for years.
You must pay cash since banks won't lend to them anymore. Ofcourse, once they do start again, prices may increase. If prices continue to fall, ROI looks even better for new buyers and negative equity doesn't matter since it returns 8%, you can technicaly take an 8% drop every year which is unlikely. What is your take on this considering it beats other forms of investment with less skill and time involved?
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