patrick.net

KILLERJANE says

Well, maybe 4800 to 5000 would pay the tab. But you still wouldn't get someone to pay that. You would need to pay PITI, HOA, REPAIRS, HIGHER TAXES FOR A NON OWNER OCCUPIED PROPERTY. Without getting enough rent to cover costs, you are stuck with the difference. That means you may be unable to afford a move.

Really? The mortgage would be a little over $2000. There's a lot of difference between that and $5000.

Bigsby says

Really? The mortgage would be a little over $2000. There's a lot of difference between that and $5000.

Bigsby to the rescue. All problems solved. 500K loan for 2k/mth all costs included. Awesome! Where do I sign?

Go for it, buy one, enjoy your freedom?

RentingForHalfTheCost says

Bigsby says

Really? The mortgage would be a little over $2000. There's a lot of difference between that and $5000.

Bigsby to the rescue. All problems solved. 500K loan for 2k/mth all costs included. Awesome! Where do I sign?

Oh good grief, what a surprise. Did I say all costs were included? Is reading really that difficult for you?

CL says

Well, they will appreciate and rapidly, which will quickly elimnate any concerns you may have for finances.

You're welcome!

Thanks for laugh. Hahahahahahaha The only appreciation ahead is to just appreciate life and forget about your house as a wealth machine. The smart money already left.

You still won't get enough rent to pay costs after increased taxes and insurance and repairs, you won't.

RentingForHalfTheCost says

forget about your house as a wealth machine.

Whoa whoa whoa...

I was told that my house was a magical machine that spewed free money at me daily...you're saying that's not true???

KILLERJANE says

Go for it, buy one, enjoy your freedom?

Thinking saying and doing need to line up.

I already own. That doesn't mean other people should buy now. It's entirely dependent on your situation. But that still has nothing to do with needing $6000 rent for a $500,000 property. You don't.

Say your mortgage really was 2000.00 if you could get one.
Insurance 2000/year
Taxes 6500/year
Maintenance 1500
HOA?

Totals
24000
+6500 Does tax rate increase for rental property in CA?
+1500
+2000
=34,000
Divided by 11 months rent is 3090per month need minimum for that crappy old home. But go ahead try to get a mortgage?

KILLERJANE says

Say you buy a 500,000 home and decide you need a change and want to move somewhere new? YOU CAN'T RENT IT FOR $6,000 A MONTH. So now you put yourself in your own little old decaying 1200 square foot jail. CONGRATULATIONS, YOU LOST THE LOTTERY. leave rants below.

Can't you get a sewer line RIDER for your homeowners insurance... I can't imagine it costing that much. I'm going to look into it for my home... My insurance currently is mid-$600 for the YEAR... I can afford a little more for a sewer line rider

We don't have any trees in our front lawn.. and the sewer line inspection came up clean with no root problems....

Then get a rent 3200 for your old box.

RentingForHalfTheCost says

Thanks for laugh. Hahahahahahaha The only appreciation ahead is to just appreciate life and forget about your house as a wealth machine. The smart money already left.

But, here's my angle. We've had depressed wages for decades and that can't go on forever. So, once everyone starts doubling their salaries, we'll all be laughing at how we used to think these prices were high.

YOU'RE WELCOME!!!

I didn't say you needed to rent it for $2,000. You said you needed to rent it for $6,000. $6,000*12=$72,000

Ok, the point is you won't won't get enough. I'll give up a little on the $6000. But not everyone has a 2000 monthly note, some are much more. Depends on the details of when you bought and the like.

The point is the same. House prison. Your stuck with the responsibility and not enough rent to cover the reality of it all.

Boomandbust, get the insurance if you can. If your streets were as old as mine, 1920's. The plumbling there in the street is almost expired or is expired. This is a chain reaction to your pipes. Do your research and hide your wallet.

KILLERJANE says

Ok, the point is you won't won't get enough. I'll give up a little on the $6000. But not everyone has a 2000 monthly note, some are much more. Depends on the details of when you bought and the like.

The point is the same. House prison. Your stuck with the responsibility and not enough rent to cover the reality of it all.

Thinking saying and doing need to line up.

So then you don't buy that property if you want to generate income.

Don't buy that property if you do the real numbers, not the glossy eyed " I am all grown up and buying a house" numbers. First time buyers don't always see it. Property tax bill will make you cry.

I Based the 6000 on the 1 percent rule for buying and added wiggle room.

His yard must be surrounded by shrubs, tell him to get a half dozen yard pussy cats from the pound. We had rats. At sunset and beyond rats would troll the yard, not timid of us. We had 2 dogs, when the both kicked it at 11 and 17 years, wild hungry pussy cats moved in. Then no mo rats.

Since OP states Burbank, I'll play along.

This is very typical of Burbank:

http://www.redfin.com/CA/Burbank/412-Cambridge-Dr-91504/home/5353417

3/2, nice location, very good schools through high school.

$545K. Very nice home and lot, not modernized, but clean and turnkey.

This rental is right nearby(within a few blocks and similiarly located near Glenoaks which is a below average major street in terms of traffic) and has just about the same specs. I will note that it is modernized inside, but from the outside it is less aesthetically pleasing than the sold home:

http://www.trulia.com/homes/California/Burbank/sold/258877-406-E-Fairmount-Rd-Burbank-CA-91501

It's landlord is seeking $2850/mo in rent:

http://losangeles.craigslist.org/sfv/apa/2990041340.html

So you tell me which pans out:

$545K mortgage, or $2850 rent.

FWIW, the plumbing really is an issue in SFV. The Northridge quake cracked the pipes originally installed on most homes in SFV, which were clay or something. There are trees ALL OVER the SFR areas of SFV. So tree roots have penetrated these cracks. The issue does not exist with PVC, but since most SFV homes were built prior to 1965 or thereabouts, most had the clay pipes. Needless to say, after the shower backing up with poop, most people get tired of it and fork over the $10K plus to have their pipes dug up and replaced.

I pay 1975 for nice apt with resort style pool, have kids need pool to de energize them. The house above is old and yes the pictures are nice but the house is staged. It is not worth it. 2850, seems painful to me. Buying it not practical.

If you buy a property and can rent it out and cover ALL your costs and will know it will appreciate, then it is ok. Even if you don't at first conceive wanting to rent it out, people get bored and situations change.

For a half million dollars you can buy properties in a few areas in US FOR AROUND 50,000 each. You can net 4-500 on each.

9 properties plus initial repair to ready for rent is 500,000.

Net rent for nine would be around 3500-4500.

Take that income and live wherever. It's a better deal than an ugly old fixer in CA.

dodgerfanjohn says

$545K mortgage, or $2850 rent.

Good example. It's close, but I think if the buyer was staying for 6+ years, it would be a buy in my book.

Oh, if you get financing according to bigsby subtract 2000 from net income for 30 years and you profit between 1500 and 2500. Properties found at tht price ten years old or newer will go up in value.

APOCALYPSEFUCK is Tony Manero says

House is, of course, a million+ stucco box and he's combating fucking rats for the honor of paying the taxes and note on it.
The place is, every time I've visited, spotless except for books and music that piles up. Kitchen gleams. Still, he faced hoards of rats.

Sounds like an opportunity for target practice!

If they are really that ugly, post pics.

Don't need to. Take a walk outside. Old houses are extremely difficult to maintain. Yes they will take an earthquake better, but that's the downside because rebuilding them would make them more livable.

FWIW, I think the owner is wishing a bit high on the rent. $2600-2700 seems much more likely based on rents I've seen in the area, which makes it a fairly clear rent IMO.

I agree Zesta that its fairly close at the moment. The time factor is a major one. Unfortunately I believe that most people currently purchasing a home in LA County are doing so in believe that homes will rise in price sooner rather than later.

APOCALYPSEFUCK is Tony Manero says

Get this. I know one guy who lives in Menlo and last year he spent a big chunk of his evenings after work laying down and picking up rat traps.

House is, of course, a million+ stucco box and he's combating fucking rats for the honor of paying the taxes and note on it.

I have an easy, cost effective solution for the rat problem:

This one even looks like one of my cats:

zzyzzx says

If they are really that ugly, post pics.

Remember those "We Buy Ugly Houses" ads?

Yes. To appeal to the masses.

KILLERJANE says

So now you put yourself in your own little old decaying 1200 square foot jail.

THIS. Buy it and the trap is set cuz there are absolutely no move up opportunities right now. If you need to buy make sure you run the math and see if makes sense to to live there for like 15-20 years. Seriously.

wthrfrk80 says

Sounds like an opportunity for target practice!

LOL! I can't even imagine the uproar that would occur if someone discharged any sort of firearm in Menlo Park! And to shoot "poor innocent creatures" none the less! I bet that those rats are on some peninsula concerned citizens group's "endangered & special" list.

Hell, good luck firing a BB gun in that area! An adult would go to jail, and a kid would end up in 5 years of "therapy" to figure out why he wanted to shoot things.

bmwman91 says

I bet that those rats are on some peninsula concerned citizens group's "endangered & special" list.
Hell, good luck firing a BB gun in that area! An adult would go to jail, and a kid would end up in 5 years of "therapy" to figure out why he wanted to shoot things.

Yes that sounds like the Bay Area, lol.

wthrfrk80 says

Yes that sounds like the Bay Area, lol.

And that kid probably could use the therapy. Twisted little fuck.

True. I was looking for a house in Fremont CA. Most I found were Old, dated, some of them in bad condition, OVERPRICED junk!
I chose to buy a brand new house in Gilroy. Much larger and much cheaper.

CL says

RentingForHalfTheCost says

Thanks for laugh. Hahahahahahaha The only appreciation ahead is to just appreciate life and forget about your house as a wealth machine. The smart money already left.

But, here's my angle. We've had depressed wages for decades and that can't go on forever. So, once everyone starts doubling their salaries, we'll all be laughing at how we used to think these prices were high.

YOU'RE WELCOME!!!

I hope you are right, but fear that will not happen. You see, I have a wage and also houses. Wage inflation without real inflation is what we need, but that would require some major productivity gains. It could happen, and I hope it does, but no guarantee there. We will most likely just sit and rot, while we slowly work through our de-leveraging issues. About the only thing we have on our side is time.

Like I said, though, I like your view of the world much better than mine. :)

Good. Because old is painful.

RentingForHalfTheCost says

Like I said, though, I like your view of the world much better than mine. :)

My only regret is that I'm only pretending to be optimistic!

wthrfrk80 says

Remember those "We Buy Ugly Houses" ads?

How can I forget when I still see them all over the place. They are like litter.

The price on one of those little 2 bedroom shitboxes was ridiculous of course. Then again of course California is the land of the "OPTION ARM". The most fucked mortgage ever to hit the earth. The only way many could afford a "shitbox".

You could ask why oh great Artismo? Why 2009. They actually went out selling these Option arm mortgages to PROPERTY INVESTORS all over the country trying to cover their asses. Property investors are condsidered a bad credit risk in that its not their primary residence and they can walk from the deal. It got THAT bad. See heres how it works. Say you have 500 mortgages that forms a "pool" of securities they are sold to say oh China or something like that. They have no asset (no house) attached. They only pass through the interest on a "monthly" basis to the security holders. When some of them go bad in the "pool" sold the buyers of the securities. They are replaced. Therefore you have to "make" more and more mortgages to replace the bad mortgages or forecloused on in the "pool". When you reach the bottom of the barrel no more "credit worthy" people left. Then you have to go to your "Bad credit" risks borrowers on mortgages. Then you have to blow something up, games over, claim a dire financial attack on the nation and markets start to slide and people lose their jobbies. See thats like the exit door. Now if you could find the records which is just an added bonus. You might be able to prove some things. However those records are probably in the east river somewhere. So you see it all worked out for them.

See they let out the clutch on Mortgage backed securities in the early 80's. By the time it hit 2000 they were all out of anything that resembled credit worthiness. As an example lets just say some of these houses had "Escalades" parked in front of them with television in the headrests so people in the back seat can watch TV. Then again just because some people aren't always "let in" unless the need arises to fill the usury bucket. I don't consider that a minus in their lives. Once again it wasn't about cash but hard goods from places like China. Wal-mart knows. Target sure as fuck knows.