Monday, February 16th, 2009 at 5:21 AM
Would You Buy This House?
Chula Vista’s real estate problems are well known, but this street will make your head spin. Eighty percent (12 of 15) of the original owners had mortgages over $1.2 million, and 5 of 15 have already been foreclosed, or are in the process.
Posted on Monday, February 16th, 2009 at 5:21 AM in Foreclosures/REOs, Jim TV | 67 Comments » | 
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If you were to print up a catalog of everything I hate about McMansions, all the pictures could probably be taken in these two houses. I wouldn’t buy either, in any condition, in any location, at any price.
GeneK | February 16th, 2009 at 7:08 amI don’t care for McMansions either, but the first thing I realized was that a well-to-do Tijuana or Rosarito businessman could house his multi-generational family quite nicely in either house, and most probably did at the peak. I just had dealings with an attorney in TJ and she mentioned her extended family had purchased in Chula Vista and that the house was her weekend getaway from her home in TJ.
no_techie | February 16th, 2009 at 7:31 amSo, was the 1st house vandalized by the owners? How do they get away with that kind of stuff? Doesn’t the bank press charges?
no bubble here | February 16th, 2009 at 8:04 amIsn’t Chula Vista, um, a really bad area? Going by memory from years ago when I lived in SD. I can’t believe that one of them sold for >$1.5 mil. Unreal.
The $585K pad could be decent for that price… somewhere else. Who the F put a pond in the way of the front door??
Aztec | February 16th, 2009 at 8:09 amIt’s Chula-juana for the uninitiated.
Maybe the tiles and pillars were copper?
These houses boggle my mind. They are monuments to this decade.
Mozart | February 16th, 2009 at 8:23 am“They are monuments to this decade.” What a great comment – very succinctly put, Mozart.
These monuments are all over San Diego County too. How will these neighborhoods be looked at in 15 years’ time?
The Blur | February 16th, 2009 at 8:54 amThat’s an excellent question. I get angry thinking about how the face of California was ruined by the lost decades of ’50-’80 when the T111 plywood box suddenly became “architecture”. I’m not sure whether the last 10 years will be even worse. And how will these homes wear?
We should be spending the bailout money buying these offending properties and bulldozing them. Then auction the land off freshly again.
Aztec | February 16th, 2009 at 8:58 amThat will do some wonders for the comps… I’m sure the neighbors are all very pleased…
greenlander | February 16th, 2009 at 9:16 amThink about the guy who just paid $1 million in September for the REO that originally sold for $1,836,000. He thought he stole one from the bank, only to find out six months later that he’s at full retail (or more).
That’s the reason for the title of this post – would you buy on this street knowing there will be at least a few more REOs on the street, let alone the neighborhood, in the coming months/years? It could end up being a ghost town, or full of squatters.
Did I mention a Ferrari drove by while I was there?
And at least twenty jet airliners flew overhead while I was there too? You can hear one on the video just as I got inside the first house.
Jim the Realtor | February 16th, 2009 at 9:30 amFaux Stonehenge.
Rob Dawg | February 16th, 2009 at 10:00 amFirst, I hope people really think about my previous comment. It is in no way flippant.
Anyway, If we see finished, functional homes going for $100/sf then $80/sf for wasted space, damaged incomplete properties is reasonable. Do that math and then project the prospects for municipal funding sources from property taxes to sales taxes to development fees.
The only ray of sunshine is… rays of sunshine. Absolute max solar potential. You could go off the grid for $40k and even make money until SDG&E changes the rules.
Rob Dawg | February 16th, 2009 at 10:10 amI think the “barbie house” is supposed to be servants’ quarters. With the living space accessible only by stairs it wouldn’t work as a granny-flat, although I suppose you could banish your kid there during the terrible teens. Or maybe it could be your plausibly deniable meth lab.
Johan Larson | February 16th, 2009 at 10:28 am“Didn’t fit on the back of the Pinto”
Funniest thing I’ve ever heard!
Jakob | February 16th, 2009 at 10:33 amYeah, Jacob, once upon a time people with money were supposed to have class. And having class included resisting the temptation to steal stuff on your way out. But times change.
Johan Larson | February 16th, 2009 at 10:39 am“Once upon a time people with money were supposed to have class. And having class included resisting the temptation to steal stuff on your way out. But times change.”
If the banks followed the rules and foreclosed on properties in a timely manner. it would have lowered the chances of the house getting gutted. But, who knows the previous owners were prob crooks in the first place.
shadash | February 16th, 2009 at 11:05 amWTF
Stephen Waits | February 16th, 2009 at 11:17 amJim,
Let me be the first to congratulate you on your successful “Vault” over the little Pony wall… I must admit, I was holding my breath as you were “In the air’, thinking… this could be really good. But, “Whew”, you nailed the landing, and all is well. I give you an 8.9 as I heard your hard leather soles turning on small stones so it wasn’t a perfect “Stick”, but, a decent landing.
stevea2z | February 16th, 2009 at 11:24 amHousing tracker finally got their site up again with new stats.
San Diego asking prices are still falling.
greenlander | February 16th, 2009 at 11:43 amI think the “barbie house” is supposed to be servants’ quarters.
I think they’re all “servants’ quarters”, if you get my drift.
Blissful Ignoramus | February 16th, 2009 at 11:44 amFaux Stonehenge
In ancient times…
Hundreds of years before the dawn of history
Lived a strange race of people… the Flippers
No one knows who they were or what they were doing
But their legacy remains
Hewn into the living sheetrock…
Of Stonehenge!
Cue music…
Blissful Ignoramus | February 16th, 2009 at 11:51 amDude, CalculatedRisk is gonna have to start cutting you in on his ad revenue.
Jakob | February 16th, 2009 at 11:53 amScooped by CR again? I don’t see it on this blog…
http://www.calculatedriskblog.com/2009/02/story-of-dictionary-hill.html
no bubble here | February 16th, 2009 at 11:59 amJim, I love how CR describes you as “Comedian Jim the Realtor”
greenlander | February 16th, 2009 at 12:01 pmFunny how all those millionaires park on the street and the driveways were empty? Daytime servants? I tend to doubt it.
Sorry, million dollar homes are built in a tract in Chula. You can call them and point to the ones that sold but they’re still not million dollar homes.
And that’s the biggest with this tract (and all the ones like it). If these were 2k square foot homes that enjoyed bubble inflation prices this tract might have a future. As it stands now, it’s doomed. In ten years this area will look vastly different.
ice weasel | February 16th, 2009 at 12:14 pmThis is what a fake millionaire’s house looks like. Looted of all appliances, pillars, and trim.
sdbri | February 16th, 2009 at 12:53 pmWhat a deal, Zillow says it’s worth $857,500!
SantaFeHills | February 16th, 2009 at 1:05 pmwow
east lake makes north county look 100% stable!
doughboy | February 16th, 2009 at 1:10 pmIt would be nice to think that years from now people will look at houses like these with disdain and regard them as symbols of conspicuous overconsumption and an era in which the entire country went mad with greed. Unfortunately, just as with gas-guzzling giant SUVs, the moment it becomes possible for people to buy them again, they probably will.
GeneK | February 16th, 2009 at 1:15 pmBoy, good thing Jim didn’t show a $2-3M house in the Gates section of Eastlake or there would have really been some snark.
Just a Broker | February 16th, 2009 at 1:59 pmI think the “barbie house” is supposed to be servants’ quarters.
Or maybe it’s for their teenage daughter Rapunzel?
KC | February 16th, 2009 at 2:05 pmI think Jim’s comment above is exactly why the pain won’t end down there in Chula for many years. Why make a long term investment for you and your family when you have no idea what your neighboorhood will look like in 5 years, or what the value of your home will be?
How are the schools going to change over the next few years? Who is going to be living next to you next year? Is your kid’s new playmate about to leave?
If you buy that place for under 600K, you may get a “deal” but you have basically signed a death sentence for neighboorhood stability for the next few years. I’d much rather buy in one of those areas once I see signs that prices are going back up again, since at least then you have a better chance at long term stability in the area. Its worth missing the bottom to get the security.
lbids | February 16th, 2009 at 2:39 pmI finally figured out where this is located, this is a 25-30 minute communte just to get to the 805 in the morning. Forget the 125 unless you work in East county or at the border. It should also have the same climate zone as El Cajon. Wonder how many A/C zones a house this size requires 2 or 3?.
Just a Broker | February 16th, 2009 at 2:40 pmI would just drill holes and felt the table. It is a perfect size for billiards. I would also finish the torture dungeon out back – that thing looks wicked – lots of impaling stakes for the heads of your enemies.
D Max | February 16th, 2009 at 2:40 pmGlad to see that JIM is covering the south side of SD.
question… is there a reason that everyone has to bash Chula Vista whenver it comes up on RE blogs? I’m a proud resident and I agree that it has its bad side, although most communities do. IMO there is very little difference between the mcmansions built in Chula V versus Carmel V, 4S, etc. didn’t builders litter most of SD with the same type of houses? I agree that these particular houses were never worth the $1.X million paid, but neither were the ones in other “more desirable” areas (4S comes to mind). Chula is definitely leading the way in price drops, but for all of you bashing Chula V while thinking that your community is immune will experience some tough love in the near future. If chula is down 50%, then so will most of SD.
also, i’ve seen lesser properties in CV sell for more $$ recently so it wouldn’t surprise me to see this one close near $700k even in its current condition. Is it worth it…. Hell NO!!! i say that countywide most tract homes over $500k are at risk.
78 | February 16th, 2009 at 2:58 pmI’m relatively new to SD county and really can’t knowledgeably bash any area more than 10 miles or so from my house. Except for this one horrible looking neighborhood.
GeneK | February 16th, 2009 at 3:17 pmIMHO, anything south of the 52 and anything north of the North County Mall (inland) and Carlsbad Outlet & Legoland area (coastal) can and should be bashed all day!
25 year SD resident | February 16th, 2009 at 3:31 pmHere’s a thought; the house is priced at $485K per JtR’s instruction to trigger a bidding war. Let’s say it goes up 20% to close at $582K. The house needs about $100K-$200K in improvements depending on how nice you want to make it and whatever else that was stolen or trashed that we didn’t see. So say $782K. The replacement cost is still probably at least $175/sf so maybe the Zillow number isn’t too far off. The flip side of comps is maybe that $1M neighbor will help.
Or, suppose you get it for $682K. With 25% down that’s a conforming loan. But is there someone with $270K cash looking to buy this house? I doubt it unless they need to get out of TJ quick because of kidnappers.
I’d like to see what this one ultimately sells at.
Mozart | February 16th, 2009 at 3:38 pmI mingled my numbers and thoughts.
25% down on $682K plus $100K to fix the place = $270K.
Mozart | February 16th, 2009 at 4:23 pmBack of the Pinto?!!?!
Awesome!
GLG | February 16th, 2009 at 4:24 pmDon’t mix up bashing this home or neighborhood with insipid “anything west of…” or “anything north of…”. Specifically, this is a hot, nasty, part of town. You’ve got a lot of driving to do to get most places and a lot of that is through some ugly areas. While I appreciate the sentiment, comparing eastlake to cv doesn’t fly. This could be a thriving, vibrant community of lower priced and smaller priced homes. Instead, it’s going to be an ever declining, degrading and someday, demolished tract. There is no reason other than “free money” to build these homes where they were built. None.
ice weasel | February 16th, 2009 at 5:14 pmDid some architecture school drop-out design that neighborhood? The too steep, too narrow doll house in the 500K house, the drive through model that doesn’t have a door into the house under the overhang? The “let’s make deal” entrance to the other REO? Wow.
As for the theft/damage of the first house, its one thing to take the appliances. I’ve been in transactions where they convey and one’s where they don’t. In an REO, you get what you get. But the columns, speakers and tile is beyond everything. I wouldn’t buy in a million years, even if I liked the design.
My mother is an S.D. realtor. 20 years ago she did an REO where the previous owner put concrete in the toilets and the plumbing. It was nearly unfixable. Who knows what surprise the previous guy put on it. Pass.
Former RB Resident | February 16th, 2009 at 6:03 pmThe crazy part is that these are Davidson-built homes, who is pretty well regarded throughout the region. It looked like they still have quite a few to sell, and they’re listed in the $800,000s.
Jim the Realtor | February 16th, 2009 at 6:08 pmCareful Gene K–I was bashed about a week ago for making the same comment— “why should you care what type of car someone chooses to drive”–Totally agree–If loose financing were avail. today, those Mc Mansions would once again be in HIGH demand! The SUV just points to consumer habits.
Local Boy | February 16th, 2009 at 6:11 pmThat was my point. Consumer habits favor big, wasteful overconsumption, even when the consumer cannot afford it. The only thing that stopped it was the bottom dropping out of the credit market.
GeneK | February 16th, 2009 at 6:30 pmJim, curious to find out how you landed in Chula V. It seems far from your usual stomping ground. Did this property jump out at you on the MLS because of the sq ft and price per sqft? Is there growing demand for Chula V due to the higher % price drops?
78 | February 16th, 2009 at 6:32 pmYes CV is out of my normal range – and though I started selling houses in SD in 1984, I’ve never been there before.
Did you see the accompanying video on CR?
http://www.youtube.com/watch?v=59PGAVRwCjI
I mention in the beginning that the guy in front of me is a ‘crazy nut’ – that’s my client who told me about this CV ‘hood. He’s been looking in north county but saw this and thought it would be worth a look, so I went down there with him to check it out too.
I had wondered if his wife thought he was crazy, and it sounded liek she did. It became our theme.
Someone asked on CR why I was laughing when paying the toll, and it was because I thought my friend in front of me was deliberately paying one coin at a time because he could see I had the camera rolling, and then he took off like a bat out of hell.
Jim the Realtor | February 16th, 2009 at 6:47 pmJim, thanks to the point to the Davidson builder. I looked at what they’re currently offering (surprise, surprise, not nearly as overdone as the Chula Vista neighborhood). I stick by my original opinion that something ain’t right in this neighborhood. Look at the first house (and there’s another just like it). You drive through an arch to the garage. Personally, I think that could be nice. Private; if there was a door there, you could get into the house under cover (for the three days a year it rains) and still go into your garage. But what’s with the “bonus” area off to the left of the arch? “Drummer’s quarters” “Perfect for recording studio?” I.e., wasted space. You don’t need it for storage, there’s a garage. Looking at what the currently are offering, they still have the “arch look” but nothing off to the left. Better use of space, IMHO.
And, that house is a cover house for A.D. compared to the monstrosity tower in the feature house. I can’t believe you didn’t provide a separate tour of the “guest quarters”. Maybe the old owners are living there with all the tile and columns they stole.
Former RB Resident | February 16th, 2009 at 7:05 pmFor those of you who would like to see the rest of the neighborhood, here is the video I took as I was leaving:
http://www.youtube.com/watch?v=H1qG7K7r3TU
Jim the Realtor | February 16th, 2009 at 7:16 pmGeke K–Couldn’t agree more. Loosen the financing and the McMansions will be back in fashion.
Local Boy | February 16th, 2009 at 7:19 pmI thought that “tower” was someone’s added-on remodeling nightmare, but there’s more of them on the way out…the builder did that on purpose? Ewwww.
GeneK | February 16th, 2009 at 8:07 pmJim, Awesome exit video. So ugly. I see its a gated neighborhood. Is the gate there to keep the underwater homeowners from fleeing?
Former RB Resident | February 16th, 2009 at 8:13 pmIce weasel, you clearly don’t live anywhere near Eastlake. “Hot, nasty part of town?” The temp in east Chula Vista is the always the same, give or take a degree, as downtown San Diego. Eastlake isn’t in a valley like El Cajon or Poway.
“Funny how all those millionaires park on the street and the driveways were empty? Daytime servants? I tend to doubt it.” Then you really aren’t familiar with neighborhoods where housekeepers and nannies are not uncommon.
“You’ve got a lot of driving to do to get most places and a lot of that is through some ugly areas.” No, it’s not the same as driving down the 101 through Encinitas, but I’d say it’s a much more scenic commute down Telegraph and up the 805 north than, say, south on 15 from Rancho Bernardo to Kearny Mesa, where the 15 has been under constant reconstruction since I left that area decades ago. If there are any ugly areas in Chula Vista east of the 805, I’ve yet to see them in the seven years I’ve lived in Otay Ranch.
“There is no reason other than “free money” to build these homes where they were built. None” How about price per square foot. Some people, me included, enjoy larger homes. I could have had a 1600 sf crackerbox in Scripps Ranch when we bought in CV back in 2001, but it would have run us $450K, so we went for the 2466sf home in CV for $285K. At today’s price per square foot, the same amount of money could get you either that thrashed 5000 sf home in Eastlake, or a two bedroom “luxury” condo on the corner of University & Park in Hillcrest, right across the street from an adult “erotic boutique” and a head shop.
The Blur wrote: “These monuments are all over San Diego County too. How will these neighborhoods be looked at in 15 years’ time?” Perhaps the same way we view the McMansions built in Poway or Mt. Helix 15 years ago. How do we view those now? A small tract of large homes is hardly exclusive to Eastlake. There’s plenty of 6BR/5BA homes with nanny quarters in 4S Ranch.
Jim wrote: “And at least twenty jet airliners flew overhead while I was there too? You can hear one on the video just as I got inside the first house.” There’s a flight path that runs south to Brown Field used mostly by cessnas and the occasional small private jet. But the commercial jet traffic heading west to Lindberg flies far north of Eastlake out of audible range. At this home’s price per square foot, a buyer would still be paying half price for one of these homes compared to Liberty Station, which *is* right next to Lindberg!
Call my cynical but a lot of you sound pissy that you can’t swing a home like this at this price in your preferred North County whiteytown neighborhood. Sour grapes, peeps.
Jeff, 40 year county resident | February 17th, 2009 at 1:50 amCall my cynical but a lot of you sound pissy that you can’t swing a home like this at this price in your preferred North County whiteytown neighborhood. Sour grapes, peeps.
I’ll do better than that. Cynical and desperate to the point of your feeling the need to imply racism. The vast majority posting here can afford one of these white elephants. Some of us would consider it a downgrade.
Rob Dawg | February 17th, 2009 at 6:58 amI’m admittedly “pissy” about the fact that these ugly monstrosities got built anywhere, but mostly what I’m “pissy” about is the knowledge that huge numbers of the people living in them can’t afford to pay for them and never could, and that sooner or later part of the cost of bailing them out is coming out of my pocket.
GeneK | February 17th, 2009 at 8:06 amJim, thanks awfully for your several video tours through McMansions. I’m away up the coast, but we have our share. I’ve just never been inside the latest crop. And I have to say — what monuments not just to excess, but to stupid excess; cheap excess. Poorly designed, poorly laid-out excess. I live in a 1200-square-foot house which is eminently more liveable than these dinosaurs.
Bob Dobbs | February 17th, 2009 at 1:22 pmWould the bank be interested in selling just the table, without the house? Will pay cash.
Nameless | February 17th, 2009 at 1:29 pm“But the commercial jet traffic heading west to Lindberg flies far north of Eastlake out of audible range. ”
This is correct – commercial jets landing at Lindbergh descend over Bonita, and they are still very high up. There are far far worse places as far as jet noise is concerned. Think OB, Hillcrest, Point Loma, … Even UTC and Clairemont with all the fighter jets.
Eastlake has its shortcomings, but jet noise isn’t one of them.
“finally figured out where this is located, this is a 25-30 minute communte just to get to the 805 in the morning. Forget the 125 unless you work in East county or at the border.”
Huh? Why would you “forget the 125″, that’s the prime way out of there. It connects to 54, 94, and 8. Yes, Eastlake is a bit far from Sorrento Valley, we’re talking 30 min commute without traffic, 45 min during rush hour. (By comparison, 4S Ranch to Sorrento Valley is 20 min without traffic, 35-40 min during rush hour) It is within a 20 min commute from downtown and half of San Diego metro.
Nameless | February 17th, 2009 at 1:37 pmThis is all starting to freak me out. At least up here in the SF Bay Area there’s a body of water between me and the bad junk (I think of it as a moat). When I move to Olivenhain next year, I’m going to be surrounded by these sad sack future ghettos!
Aztec | February 17th, 2009 at 1:56 pmIn case anyone is curious – this house was owned by Kerry Vera:
http://www.google.com/search?hl=en&q=%22kerry+vera%22&btnG=Search
586K in that area is VERY cheap. It will be bid up. Rolling Hills Ranch is one of the few places in San Diego metro where you can buy a McMansion with land for less than a million. A typical Rolling Hills lot is 20,000 square feet.
Nameless | February 17th, 2009 at 1:57 pmOh, now you tell me the owner’s a fight girl? I better lie low….
Two offers in on the house so far, but it didn’t sound like they were too enthused – they haven’t sent them to the bank yet.
Jim the Realtor | February 17th, 2009 at 2:07 pm“This is all starting to freak me out. At least up here in the SF Bay Area there’s a body of water between me and the bad junk (I think of it as a moat).”
Actually, there’s a lot of houses this ugly on the Peninsula, you just don’t usually see them because they’re in places nobody with an income less than Larry Ellison’s can afford. And the bigger they are, the worse they usually look.
GeneK | February 17th, 2009 at 2:16 pmI could have had a 1600 sf crackerbox in Scripps Ranch when we bought in CV back in 2001, but it would have run us $450K, so we went for the 2466sf home in CV for $285K.
However, would you have bought one of those houses in Chula for $1.2M? There’s a difference between that and buying a nicer house in a less desirable neighborhood for a lot less money.
JordanT | February 17th, 2009 at 2:20 pmThis 25 year-old California native looks like she’s got it made: she’s married to a gorgeous successful UFC Fighter, she has a loving family, a nice car, a beautiful home, and great looks. Before this, Kerry bounced around from job to job trying to find something to make her happy. She even tried her hand at the family business, real estate. Kerry finally found her calling when she discovered kickboxing. Now she’s only really fulfilled when she’s in the ring.
Jim the Realtor | February 17th, 2009 at 2:45 pmVera moved to San Diego in 2003 and hooked up with Dion’s City Boxing gym where former IBF minimumweight champion Manny Melchor, a Filipino, is a trainer.
Last year, Vera and his wife Kerry visited Manila in a sentimental homecoming. They were just married. Kerry, an American, is a pro lightweight boxer with a 1-1 record. She decisioned Alicia Gonzalez in her pro debut in Montebello, California, last year.
Jim the Realtor | February 17th, 2009 at 2:50 pmWith his ring earnings, Vera has bought a San Diego condo where he lives with Kerry and a nearby house where a sister’s family lives. His garage has three cars, including a shiny Z28 Camaro. He plans to open a gym with partner Rudy Silva and like a typical Filipino, wants to earn some more so his parents can retire in comfort.
Nameless wrote – Huh? Why would you “forget the 125?, that’s the prime way out of there. It connects to 54, 94, and 8. Yes, Eastlake is a bit far from Sorrento Valley, we’re talking 30 min commute without traffic, 45 min during rush hour. (By comparison, 4S Ranch to Sorrento Valley is 20 min without traffic, 35-40 min during rush hour) It is within a 20 min commute from downtown and half of San Diego metro.
4s to the 56/5 interchange is 18 minutes going the speed limit no traffic., 25-30 minutes with traffic. Give or take 5-10 minutes depending on your location in 4s. 4s is also 20 mins to the beach in Del mar, 20 mins to Torrey Pines for golf, 15 minutes to stone brewery, 30 minutes to the airport etc etc etc
Im not defending 4s, just providing facts on drivetimes.
4s Renter | February 18th, 2009 at 4:22 pm“18 minutes no traffic, 25-30 minutes with traffic.”
Just the traffic jam at the end of the 56 can be longer than 7-12 minutes. Sometimes the 15 gets congested, too.
“4s is also 20 mins to the beach in Del mar, 20 mins to Torrey Pines for golf, 15 minutes to stone brewery, 30 minutes to the airport etc etc etc”
Eastlake is 5 minutes to Otay Lakes, 10 minutes to Mexico, 20 minutes to just about everything else, including Coronado, Balboa Park, and the Q.
Contrary to public opinion, there’s life south of the 8.
Nameless | February 18th, 2009 at 8:48 pmJust the traffic jam at the end of the 56 can be longer than 7-12 minutes. Sometimes the 15 gets congested, too.
People in 4s needing to get west dont use the 15..
Eastlake is 5 minutes to Otay Lakes, 10 minutes to Mexico, 20 minutes to just about everything else, including Coronado, Balboa Park, and the Q.
10 minutes to mexico’s warfare problems – awesome. Being 20 mins to Balboa, the Q, downtown, Coronado is nice though. I miss having those things close living in North Park. Maybe the next “Q” will be in eastlake’s backyard.
This city still needs a mass transit train system up the 15, connecting the 15/5/56/52 etc.. Extend the trolley system up the major arteries.
4s Renter | February 20th, 2009 at 11:43 am