Rent Vs Buy in El Segundo

There’s a couple tiny homes for rent for asinine prices right now in El Segundo. But even at these asinine prices it still doesn’t make sense to risk a life’s savings just to say you “own” a home.

211 W Maple is a tiny 985 sq ft home for rent for $3000! All I can say is fuck you. By the phone number on the listing I can tell it’s a local property management company that manages a lot of El Segundo units. When we were looking for a home I went to see a couple of their properties and both times they were shit. The epitome of what you would expect from a neglected rental unit.  So although I suggest renting vs buying, renting from a shitty property management company has it’s own issues and as you can see from this example they are being greedy as fuck. From the rental history you can also see they decided to raise the rent from the initially listed $2800 one month ago.  Yet they lost one month of rent because it’s sitting there.

Price History

DATE EVENT PRICE $/SQFT SOURCE
04/08/17 Price change $2,995/mo-1.8% $3 Zillow Rental …
03/15/17 Price change $3,050/mo+8.9% $3 Zillow Rental …
03/10/17 Listed for rent $2,800/mo $2 Zillow Rental …

There are three homes under 1200 sq ft for sale.

815 Penn St. 1120 sqft for $879k
123 Loma Vista St – 804sq ft for $950k
403 Loma Vista St. 1164 sqft for a laughable $1.23 mil

If you could scrape up the ~$200k for a down your PMIT is around $3800 for Penn St. Once again the rent vs buy is skewed to rent. Let your $200k make 5% at about $833/month in interest plus the $800/month you saved by renting. An extra $1600/month in cash flow for renting. Annually that’s about $19k not including the cost savings of calling your property management company to come fix and repair your old crappy house.

Yes you will miss out on ~$20k in write-offs but that isn’t $20k in your pocket. That’s $20k you paid a bank for the privilege of renting from the bank.

Not to be outdone by Alarcon property management Kirk Brown once again shows how fucking greedy he is with his $3500/month 775 sqft home at 526 W Palm Ave. What an asshole.  Just because these greedy people price the rents where they are does not mean they are worth it.

Prices are set at the margin. It just takes on sucker for $4/sqft rents to be the new norm.

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