I own a one bedroom condo in the Watermarke/ It is 635 square feet and was rented for $1250. per month. It know can be rented between $1550 to $1650 per month. However, I refinanced my mortgage loan and now paying the following per month (Total: $2169)
$250 Property Taxes
Now, lets take a look at the operating costs and the income potential. If you receive $1650 per month in rent your monthly loss will be $469.00 per month. Annual loss is $5,628. Is this a good investment to keep? Should you short sale this property as this property has a burden of $90,000 ( the condo is worth on the market around $194,000 to $200,000 and the amount owed is $280,512).
I know that place very well in fact I used to live next door at Ave. One. I now live down the street across from Jamboree still in Irvine. It all depends especially reading everyone's answers all makes sense too. Here are my thoughts:
1) Do you live in this condo
2) is $1700 pm includes your taxes?
3) How is your credit? Can you qualify should you buy another property or move into another if this is your owner occupancy?
4)at 12 months you will be paying out of pocket $4800 py for HOA if you live in it yourself
5) It's not the best time to find a tenant but it's probable with extensive marketing you or an agent can find someone
6) do you have to sell? That area is a great area especialy for UCI students. so if you can get $30K now for it imagine in 3-5 years how much more you can get?
I hope this all helps and it does not confuse you more. I am here if you need help or any question you may have.
Two of my Specialist Associates know Watermarke like the back of their hand. We were talking about Watermarke this week and I remembered your question so I asked them what they thought. If you don't have to sell right now, don't. They have probably 23 other homes, not yet listed, that want to sell there.
Unless you are willing to price it to sell next, which will be lower than current SOLD comps, you are better off renting it out for the time being. Call me if need more specific information at (949) 278-4807.
I think it depends on what you are thinking about doing. Are you trying to rent something for yourself, or are you thinking of purchasing a new home?
If you could sell your condo and walk away after all of your costs etc. and either break even or turn a small profit, then you may be better off than trying to hold off until the market gets better. The reason being is, say the market continues on as it is right now, and keeps going down for another 1 to 2 years; once the market has reached "rock bottom" (which who is to say when that will really happen?)then you will also have to wait for the market to come back up and get you back to where you either break even or turn a small profit. It is hard to say without knowing more about your situation. If you would like, you can call and or email me personally anytime for more information on the market and you can also access my website for more information as well.
Prudential California Realty