22 Responses to “San Jose 3br/2ba for rent $2,095 – how much would it be to buy?”

1. Lionel Says:
   January 9th, 2009 at 9:25 am

   Well, I don’t have a fancy calculator, but, assuming they can even collect the rent they’re requesting, the house is not worth more than 250K.

2. sonarrat Says:
   January 9th, 2009 at 10:17 am

   That’s in a good part of Blossom Valley west of Meridian, I don’t think they would have any trouble getting that much for rent. And if they paid $438K for it.. sounds like the LL is in good shape.

3. Gavin Says:
   January 9th, 2009 at 11:26 am

   It is very likely that the rent in 2000 was also about $2,095 per month. As the house sold for 438K in the year 2000 the price/rent multiple was 17.4 then, a very reasonable figure.

   Currently the price/rent multiple at the Zestimate is 21.6 which is too high.

4. A. Lewis Says:
   January 9th, 2009 at 11:48 am

   Isn’t amazing the price/rent ratios that have become acceptable in the Bay Area, and especially the RBA?

   Lots of parts of the country would expect only a ratio of 10, some would go for 12 or 15 for exclusive places, but we think 17 or 20 or 25 is just fine…it’s all about the expected 10%/yr forever thing.

5. madhaus Says:
   January 9th, 2009 at 11:58 am

   I wouldn’t buy this house because the street name suggests my Ferrari would have an accident.

6. A. Lewis Says:
   January 9th, 2009 at 11:59 am

   Here’s one for you:

   Mansion on golf course – built last year. VERY executive.

   Here’s the zillow info:

   http://www.zillow.com/homedetails/1452-Club-View-Dr-El-Cerrito-CA-94530/2140755295_zpid/

   Note they originally listed it for over $3M when it was completed this past summer(was it 3.6? Maybe it was only 3.1, I can’t remember).

   So it’s already taken a HUGE haircut to the current $2.388M. (Love the eights – that’ll work!)

   Wow, it’s only $357/sqft (6,680 sqft). Hardly RBA, I know. The elementary school is very good, though this is private-school-buyer stuff.

   So, they’re sitting on the massive property tax, and other carrying costs for months – they decide they’ll try renting it, too. What would you rent this for?

   Why it’s a bargain at $8,800/month (oo, and a lucky price, too!):

   http://sfbay.craigslist.org/eby/apa/980612647.html

   I love how they have the gall to say no pets. You’re going to pay $8800/month and they want to give you lifestyle choice restrictions? That’ll help keep their pool of renters large…

   So what is the price to rent ratio? 271 for monthly, 22.6 for annually…

   So, the moral of the story is: they’re just asking a really low rent!!

   I love this place. It’s only been on Zillow 35 days – get it while it’s hot!

7. madhaus Says:
   January 9th, 2009 at 12:54 pm

   A Lewis, that looks like an architect’s drawing, not a photo. Maybe the place isn’t like fully built out yet. For $8800 a month you really get an adventure in living. Note that the craigslist post doesn’t have any photos of the house itself, just the view of the golf course.

8. A. Lewis Says:
   January 9th, 2009 at 1:30 pm

   Oh it’s built out – I went to the open house this summer. It doesn’t have any yard at all – they cut the lot out of the hillside, so it has a cement retaining wall all along behind it. Nice views out the front though, and if you like golf, you’re all set.

   here’s the listing website with interior photos:

   http://webhosts.cisdata.net/bin/rea.php?action=HOME_SEARCH&listing_id=REASIL43568183&hs_action=VIEW_DETAIL&acnt=AR157831

   There’s no real outside photo b/c they’re lazy. You’d have to stand in the middle of the golf course to get that shot (on a pedestal 100′ high – it’s on a bit of a hillside). I think for $2+M I could get a really nice photo taken someway somehow.

   But hey, I don’t want to suggest the Realtor here isn’t earning their commission! Far be it from me!

   What’s the seller’s agent commission usually? 3%? So that’s $71,640 – well, I’m sure he’ll earn it. He’s probably just bummed he’s not earning it off the $3M+ price…

9. A. Lewis Says:
   January 9th, 2009 at 1:34 pm

   Zillow kindly does the mortgage payment estimate for you on their website.

   Assuming a lucky(!) 4.88% interest rate, and a modest 20% down payment, 30-year fixed term, with some kind of estimate of taxes and insurance, you come out to only $11,658.

   And what bank wouldn’t give 4.88% on a $1.9M loan?
   Credit is pretty much free flowing these days…

   What’s that you say, Jumbo rates are much higher? I’m not listening.

   That rent of $8,800 is looking better all the time. I may have to find 10 friends to move into it with me!

10. vtek Says:
    January 9th, 2009 at 2:38 pm

    This hause is purrrfect setting for the next season of Big Brothers, wouldn’t you say?

11. nomadic Says:
    January 9th, 2009 at 3:48 pm

    What do you suppose this 2 bedroom would rent for?

    http://www.sfgate.com/cgi-bin/blogs/ontheblock/detail?blogid=58&entry_id=34378

    zing – now that’s RBA!

12. madhaus Says:
    January 9th, 2009 at 4:10 pm

    Wow, nomadic, for that kind of dough you’d think it would have more than two bedrooms. Let’s see, sixteen point five mil, twenty percent down, alternative minimum tax, $180K property tax bill… I think it would rent for about $2750.

13. anon Says:
    January 9th, 2009 at 4:37 pm

    Madhaus,

    What’s with the doom and gloom? Once the stimulus package puts another thousand dollars in every family’s pocket, we’ll likely see overbidding on that apartment.

14. madhaus Says:
    January 9th, 2009 at 5:17 pm

    Good point, anon, I had forgotten about the stimulus package. I had also forgotten about the extra rebates I’ll be getting from the cell phones my kids got for the holidays. You’re so right, the rent should really be $2875 a month.

    Now how many of you guys with paper bags over your heads are there? You don’t look like the one I ran into at the pileup last night. I wish to heck you’d follow zanon’s example and append some other random letters (e.g. xanon, yanon, wanon, etc).

15. WillowGlenner Says:
    January 9th, 2009 at 5:49 pm

    this is the exact area where I am looking. I don’t like Dent but I do like the other streets there. Surprised the zestimate is so high. You can get nicer properties than this for $475K, sometimes even less. They rent for maybe $2200.

16. WillowGlenner Says:
    January 9th, 2009 at 5:51 pm

    Gavin this might have rented for $2100 in year 2000 but just 2 years later I doubt you could have gotten that rent. Houses like this were going for $1600 in 2002/2003.

    They underpriced this rental (unless it is on the part of Dent that backs up to the freeway) to get a lot of qualified applicants.

17. madhaus Says:
    January 9th, 2009 at 6:21 pm

    As we look forward to our stimulus checks, remember this is the next to last weekend under the current administration. So enjoy George W Bush’s Top Ten Moments.

18. nomadic Says:
    January 9th, 2009 at 6:28 pm

    This is Dent, about a block off Blossom Hill. Decent area.

19. nomadic Says:
    January 9th, 2009 at 10:19 pm

    Here’s an interesting listing in madhaus’ neck of the woods:

    http://www.redfin.com/CA/Sunnyvale/880-MOCKINGBIRD-Ln-94087/home/1463891

    Methinks their wishing price is around $200k too high. The kitchen and bath need to be gutted. And what the heck is on the floor in the third pic?

    Bonus points for the street name – that’s where the Munsters live!

20. madhaus Says:
    January 9th, 2009 at 11:17 pm

    Thanks for that one, nomadic; it’s from your old neighborhood (Cherry Chase) rather than mine. If you pull back a little on the aerial view you’ll see Cherry Chase Elementary is only a block away.

    Here’s the property description:

    Great location, great corner lot. 8 varieties of mature fruit trees, landscaping. Tons of potential. Ready to move into now! Huge guest quarters with two bedrooms, full bath, living room and kitchenette. Extra 12.5 x 16.5 storage unit in back.

    Yeah. Tons of potential. That means owner didn’t want to spend any money getting it ready to sell. Love the shag rugs all over the place, nothing says 1976 like a shag rug.

    Also check out the properties in the immediate neighborhood. The 7450 sf lot is one the biggest on the block.

21. nomadic Says:
    January 9th, 2009 at 11:29 pm

    Close enough, mad. Same zip code.

    Yes, one of the larger lots around the area – the only real positive besides some extra square footage. Aha! It only has a carport – they probably converted the garage for the “guest quarters.”

    What would you say is a fair price for this thing?

22. madhaus Says:
    January 9th, 2009 at 11:47 pm

    $2750 a month.

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