Rental Property Investor · Boise/Portland · Member since 2017 · 709 posts · 742 votes
I’m investing in the WRONG asset class if people are paying $1000 rent to live in a shed!
Copied from news article; "Maybe it is high for what it is offered at, but the reality is that the square footage and the location is exactly what this market needs," Alan N., director of research at the Xpera group, reported.
Developer · San Diego, CA · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Matthew McNeil Small world. I just rented a 180sf former single car garage (it has a bathroom and small kitchen) 1 block south of this "shed" on the same street to someone for $1300/m. It's bonkers to people who have been around a while, but it's real.
With such a draw for people to live, work and visit So. Cal, it makes a lot of sense for having an ADU or small liviable space in your back yard. Rents are ridiculous right now. Especially where I own my homes. Financially it makes sense and with laws regarding this type of accessory dwelling being less restrictive now it really makes sense.
The debate is not regarding the numbers, for many people including my wife it comes down to sharing your personal space (backyard, driveway) basically playing nice in the sand box with someone else for the extra income.
At least that is the debate in my house.
I know the reason why I have been able to stay married for 25 years is because big decisions are always discussed with my better half and nothing is forced.
I wish I could’ve afforded a place like that when I was single...looks great. But that’s just reality for most young people in a city like San Diego. $800-1k in a bad part of town w/eight roommates is closer to most’s experience, which makes that place look great. Being safe, being in a decent area, they’re all very very fundamental needs that dictate these decisions.
And yes @Matthew McNeil you might be investing in the wrong asset class :)
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
6y
That is likely the cheapest non-roommate option in North Park and therefore is not over priced. Some people do not understand the cost of land and the cost of construction in that area.
This is a big ado about nothing by people who are uninformed of market rents, costs of land in North Park, and costs of construction in North Park. I see something like this story about every 6 months. The last one I remember was a little unit in National City (not as nice an area as North Park). I believe it rented at asking price and I believe this will rent at asking price (I am confident as there is nothing that cheap available).
Do you know what the average home sells for in North Park? Do you know the average lot size? Average North Park rent? Average median price per foot in North Park is $553 (Source Zillow). At 200' for the unit and average cost per foot, this rent does not even make the 1% rule. It is the reality of the market.
We have a duplex in San Diego that is STR that each unit is ~550' that rents for over $450/night per unit ($900 total) on peak nights (they average ~$250/night each). We achieve virtual 100% occupancy at those rates. It is the reality of the market.
Rental Property Investor · San Diego, CA · Member since 2019 · 290 posts · 253 votes
6y
Price seems about right to me. I have a tiny 1 bedroom 500 sqft. condo a couple blocks north of North Park that rents for $1700. I have never had more than a week of vacancy there.
@Matthew McNeil Small world. I just rented a 180sf former single car garage (it has a bathroom and small kitchen) 1 block south of this "shed" on the same street to someone for $1300/m. It's bonkers to people who have been around a while, but it's real.
Justin, I agree. My portfolio is in Idaho - Boise and renting a shed for $1000 is bonkers, but California has been known to come up with innovative ideas!
With such a draw for people to live, work and visit So. Cal, it makes a lot of sense for having an ADU or small liviable space in your back yard. Rents are ridiculous right now. Especially where I own my homes. Financially it makes sense and with laws regarding this type of accessory dwelling being less restrictive now it really makes sense.
The debate is not regarding the numbers, for many people including my wife it comes down to sharing your personal space (backyard, driveway) basically playing nice in the sand box with someone else for the extra income.
At least that is the debate in my house.
I know the reason why I have been able to stay married for 25 years is because big decisions are always discussed with my better half and nothing is forced.
My take on it.
Well put. I've been married 28 years and a happy wife makes for a happy life as the saying goes. But.... sharing your backyard is a bit encroaching on personal space, as you put it. I think my wife might be willing though if we could get that kind of rent for a shed!
Price seems about right to me. I have a tiny 1 bedroom 500 sqft. condo a couple blocks north of North Park that rents for $1700. I have never had more than a week of vacancy there.
If you don't mind me asking; how much did you pay for your condo?