La Mesa Homes For Sale And The Market, part 4

By
Real Estate Agent with Jack Rowell Real Estate

PAR

La Mesa Homes For Sale And The Market

Hi Folks. In this section of the La Mesa Homes For Sale And The Market series we are going to talk about buying homes, condos & multi-unit rental properties as investments.

Now, we know that La Mesa has great schools (None have API scores under 750). We know that it's charming (Please see Downtown La Mesa) and has plenty to do (Please see Lake Murray, Seau's Sport's Complex). And we know that home prices are great for what you get. All of these things make La mesa a great place to buy a home. These are the same reasons that La Mesa is a great place to invest in rental property. That, and it has a vacancy rate of only 3%, one of the lowest in the county.

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That's all fine and dandy, but what about the end result? How much rent can you get vs. the price of the property, other wise know as the capitalization rate (The cap rate is the net rent divided by the purchase price. It does not count your mortgage. It assumes you paid in cash)? So very glad you asked.

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7s! Condos, single family homes and multi family can all get cap rates of 7 or higher (By the way, that's good! Try getting that on a yearly basis from the stock market. Then try getting tax incentives, rental hikes and property appreciation).

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Some examples of what sold this year and what the cap rates could have been are:

8150 Lemon Ave #223 is a 2 bedroom, 2 bathroom condo bought for $130,000 with an estimated cap rate of 7.7 and gross rents of $1300 a month. The HOA fee of $255 pulls the cap rate down a bit, but the convenience will be attractive to some. Also, only putting down $26K is kind of cool too.

8855 Joris Way is a 3 bedroom, 2 bathroom home bought for $244,000 with an estimated cap rate of 7 flat and gross rents of $1900 a month.

4365 & 4369 Parks Ave is a 2 on 1 consisting of a 3 bedroom, 1 bath home and a 2 bedroom 1 bathroom home on the same lot and bought for $330,000. it would have an approx cap rate of 8.2 and a gross rent of $3000.

La Mesa Homes For Sale And The Market

So, if you're in the mood to put your money into real estate, you could do a lot worse than La Mesa, 91941.

Let me know and I'll send you some free lists of properties that would make good rentals, or you can do your own search by clicking SEARCH.

Also, check out the rest of the series on La Mesa Homes For Sale And The Market            PAR

God Bless.

 

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