What do you do with this REO in the Ranch?
Remodel? Tear down and build a monster?
For people who just want to get into the Covenant at a lower price, this might be a viable option just the way it stands:
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
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ravino’s comments a few threads back:
The remainder were a combo of vintage 60s/70s Covenant ranch styles, some poorly/partially remodeled, some wrecks, banking on acreage/location.Despite their condition, listing price way out out whack in relation to the primo ones, for reasons I’m starting to figure out.
After reading that (and now this post) I couldn’t help but wonder if something Dawg & I had discussed years ago wasn’t finally happening — that (1) a lot of people who had lived in RSF-like communities for eons had tapped out the ATM and (2) those that hadn’t are trying to get out with whatever equity they had left in order to preserve their rosy retirement dreams.
Otherwise, why leave paradise when you have low or no payments, low tax basis, no HOAs, etc.?
Good point.
Background on this one:
Paid $2,875,000 in May, 2007, and used a $575,000 down payment. Just a million-dollar hit in 2.5 years.
Just a million dollar hit?…
Yikes! That must have hurt! With that kind of a loss, you might as well surrender it to the bank!
The bondo on the floor had me scratching my head – who the heck does that? Despite the bondo, this listing looks like a bargain compared to the listings in La Jolla, Del Mar or Coronado where you get a much smaller house with no absolutely no lot/acreage. Never thought I’d say RSF looks affordable but compared to some other overpriced junk in Encinitas, SB, Cardiff, Point Loma etc. this looks good…wish it was just another mil lower….
4600 sq.ft. @ 1.879M = $408/sq.ft. for an old house with water damage issues? must be lot size. I guess that’s why you were mentioning tear down as a possibility. I think this one might sit on the tundra for awhile
even if it sells that’s a $33K loss PER MONTH for 2.5 years! that’s devastating!
Are you sure it is a slab (where the leak was in the corner)? Many old homes were on beams with a crawl-space.. I grew up in one (north of LA).
I thought I saw floor registers for heating in that room with water damage. Uncodegen may be right. Floor registers would indicate ductwork under the house.
Jim is the right on the money on these 60/70’s properties…”where do you start and when do you stop ?” on these homes in need of severe upgrading..nearly every remodel I’ve seen in this RSF category is either a poorly executed attempt or some Frankenstein makeover that makes no sense in relation to the style of the original home.
In my opinion,this FB, (foreclosed owner), overpaid in 2007 on this particular home by $1ml on price of $2,875ml and today it’s not worth more than $1.2-$1.3ml with the condition it comes with a bulldozer. Spend another $1ml plus to bring it up to RSF expected standards, a year of your life with hassles and dealing with the RSF Art Jury, lots of family stress and thinning or graying of your hair.
Or, if RSF is a must, look at the newer, move-in ready properties in the 2.5ml range and ignore the vintage restoration projects unless priced accordingly.
Some mid 60’s slab houses have the ductwork in the slab.
Not sure why anyone would tear down that beautiful house. We have enough of the ugly, stucco boxes all over San Diego County. Let’s leave the few older homes alone, so that those of us who appreciate a nice, older, custom-built home can find just a sliver of acceptable inventory.
Just try looking for a house that’s older, single-story, on a nice lot (10,000 sf+). There is almost no good inventory in North County because the area is relatively new, and it’s been built-out by the BIG developers who shove huge houses on tiny lots, or the spec builders tear down what little decent inventory is left and build another McMansion.
This is one of the most frustrating aspects of our search. No good inventory (lots of boxy McMansions on tiny lots with HOAs/Mello-Roos, though).
Nice report…
not worth remodeling but rather a great tear down. rebuild 4,000sf x $300/sf (tight for RSF but doable) = -1.2mm. Value of $2mm ($500/sf including land) – 1.2mm – fees/permits/u.g. power lines/demo = <$800k as is for someone who wants to not be upside down on the day they move in….
2 usable acres is very nice in RSF. Much better than maintaining the 4+ acres every $$month$$.
Gotta agree with CA renter on this one. On what planet does it make a whit of sense to tear this house down? Fix the floors for a few thousand and it’s damn near perfect. Have we learned nothing over the last two years?
I agree with John and CA Renter. Fix the floors (assuming the slab is in reasonable condition) and do a little remodeling. Otherwise a great house. I’d do a more extensive landscaping in the back over time (sweat equity) but that’s my preference for living in a botanical garden.
I’d probably turn the downstairs area in an extensive office/art studio that can be perpetually messy without impacting the living quarters upstairs.
For those who say they’d keep the house, its a shame to teardown, would you really write a personal check for nearly $2mm for that home? Think of all your other options for a really great home for $2mm.
I have a very hard time seeing anyone write that check and just do a little floor fixing and minor remodel. You’d be over $2mm.
What we seem to have forgotten is that $2mm is A LOT OF MONEY TO LIVE IN A LESS THAN TOP SHELF HOME!!!
For $2mm go check out Fairbanks Highlands in Carmel Valley where you can get 1-2 flat acres, great access to the 56 fwy, 4-5ksf of move-in-ready fairly new home, with great schools.
Just saying that for $2mm there are MASSIVE QUANTITIES OF OPTIONS and that house should be fully renovated for less/equal to the asking price, not in its current condition.
(lago lindo is a great street so long term value will be there, just don’t overpay to get there).
That’s a beautiful house, on a nice lot. It’s simply wasteful to consider tearing it down.
I’m late to the party on this, but RSF can do whatever it wants. All I’ll ever do is ride through it on my daily bike rides.
That floor looks like a remodel and the water damage has worked through that as well. The bondo suggests a massive problem in one area. How can the top level of a two level have such drainage issues? As a kid, I lived on a 1/4 acre property in Victoria, that was HUGE-this place makes much more sense subdivided.
clearfund, exactly. It’s a LOT OF initial MONEY for vintage and Frankenstein remodels, followed by an ongoing outflow of LOTSA add’l. MONEY for fixing it up but never quite getting it quite “right”.
Value is in the land, in this case about $1.2ml, bring along a bulldozer and another $1.2ml for a new build.
I never understand why people want to buy into the Covenant. You spend all that money to put up with an obnoxious HOA?
If I bought in RSF, it would be to get away from those people.
That is one goofy house. More than 4,000 sq ft, yet the master bedroom is maybe 18′ x 18′. Bathroom right across the front door, and then a useless room/thing to the right which you have to go through to get to the rest of the house. Two bedrooms in a basement-like area downstairs. It’s a mess. I can see somebody tearing it down merely due to the horrible floor plan.