Is Palmdale a good Place to buy??

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wendyinoc_IHB

wendyinoc_IHB

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I am looking at a condo for $78K as a rental. I would think rental market would still have potential. Most condo's in this complex are rentals and Palmdale has horrible apartment complexes. What do you think?? My payment will be with HOA $600 and rent is $800. What am I not considering? I love all your knowledge on this board!! Thanks
 
You are potentally two or three hours one way from Palmdale. If you plan on managing it yourself, think again.



Outside of that, there's a reason Palmdale has such shitty apartments. At $4 a gallon of gas, that's all folks can afford commuting into LA.
 
Are you nut!! Parents of hood mice moved their family out there hoping to run away from the gangs and kids grew up being a bigger hood rats. Black and Hispanic gangs are there and driving property value way down. Never invest on a rental that you can not keep an eye on. There is a reason why it is cheap. The demographic out there will make sure you will never become a landlord again.



[quote author="wendyinoc" date=1211942316]I am looking at a condo for $78K as a rental. I would think rental market would still have potential. Most condo's in this complex are rentals and Palmdale has horrible apartment complexes. What do you think?? My payment will be with HOA $600 and rent is $800. What am I not considering? I love all your knowledge on this board!! Thanks</blockquote>
 
what they said. demographics are questionable, distance for you to get up there and manage the place is far.



but mostly, that area is going to crash even harder than it did in the 90s, when houses were going for $50k. This time, not only is the economy in the crapper, but gas is $4, which means that even fewer people working in the valley or LA will want to live out there.
 
When our governator made his Terminator II the homes in Palmdale were set on fire. It was decided that the homes there worth more for the movie backdrop than selling them!
 
If you HAVE to invest in Palmdale, buy a recently build or newish house near the mall and rent it out. Get a good local agent to handle it for you.



Stay away from the east-side or the area near Lancaster.
 
Do NOT buy in Palmdale or Lancaster. We pushed plenty of gang members out of LA and guess where they ended up? You got it. bk is right. 'nuff said.
 
If you wanted to be a section 8 landlord, it might be a good area. Gov't helps offset some of the risk and costs, but personally I couldn't stand to see the properies getting trashed.
 
I grew up in Palmdale and do visit due to relatives. It's no way near OC lifestyle. I saw the condo for $78K go as high in this madness to almost $200K. I can afford the payment if even nobody lives in it. Which is why I am considering it. I know Palmdale is trying to send more of the problems of the AV to Lancaster. I don't know. All I know is the lowest these Condo's were was $45K in the 90's. How low could they really go?? I agree the key is the tennant. Can I get a good one?? I don't want to add to the problem and make it Section 8. Can I find out how many condos in the building our section 8??
 
I know it sounds like a good deal, but with the inventory out there you can afford to wait out the opportunity without missing out. How much deposit do you get for an $800 condo? How much damage can a tenant do? Do you have property taxes and insurance figured in there? Maintenance? What about vacancy? I think they say you need to figure on a minimum of one month vacancy per year. You'll need at least 20% and probably closer to 30% down to get financing on an investment property today and rate will be higher than owner occuppied. Opportunity cost of the downpayment? I think when you factor in all the costs and the headache, you're not looking at $200/mo positive cash flow... If you are buying for cash flow, doesn't seem worth it. If you're buying for appreciation, wait for bottom. It's still really volatile out there.
 
[quote author="wendyinoc" date=1212032344]All I know is the lowest these Condo's were was $45K in the 90's. How low could they really go?? </blockquote>




Have you looked at Detroit and Cleveland? SFRs for $5k? Talk of plowing under whole neighborhoods? Declining population and jobs.



AV: not enough jobs. Far from jobs due to mountains. Gas at $4 and going up.





I don't really think that the value will go to zero, but I have a funny feeling you could loose it all investing out there.
 
[quote author="wendyinoc" date=1212032344]I grew up in Palmdale and do visit due to relatives. It's no way near OC lifestyle. I saw the condo for $78K go as high in this madness to almost $200K. I can afford the payment if even nobody lives in it. Which is why I am considering it. I know Palmdale is trying to send more of the problems of the AV to Lancaster. I don't know. All I know is the lowest these Condo's were was $45K in the 90's. How low could they really go?? I agree the key is the tennant. Can I get a good one?? I don't want to add to the problem and make it Section 8. Can I find out how many condos in the building our section 8??</blockquote>


Is this condo on the East or West side of Palmdale?
 
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