Covenant REO in the Works

by | Jan 11, 2011 | REOs Coming to Market | 8 comments

WaMu is getting a jump on the new year, they foreclosed on 1/3/2011:

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Jim the Realtor
Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!
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8 Comments

  1. lgs
    lgs on January 11, 2011 at 10:51 pm

    That’s a nice floor plan. I say fix it if it’s priced cheap enough. If it gets bid up you’d have to tear it down to justify a high price. But I say live comfortably for the next 10 years and get rich off the next guy who wants to tear it down at the top of the next cycle. You could do everything you need to make that a very livable house for <$150k, IMO. But then again, I am known to be a bit frugal.

  2. Sean
    Sean on January 12, 2011 at 8:46 am

    Not a chance you could properly rehab for $150k. You’ll spend that on the kitchen and bathrooms alone, and the kitchen and adjacent family room space need reconfiguring to bring it into the 21st century, plus the new roof, new flooring, new drywall and replacement of windows/sliders with French doors and decent windows. I think you’d be lucky to keep it under $400k. And then there’s the landscaping . . .

  3. Anonymous
    Anonymous on January 12, 2011 at 10:58 am

    I was up to $275,000. myself but large houses are deceptive.

  4. Art Eclectic
    Art Eclectic on January 12, 2011 at 2:52 pm

    I agree with Igs – $150-$200k to bring it into livable for another 10 years, then sell it at the top of the next cycle for a huge profit. The trick would be to be frugal and go mid-range. Let the next sucker drop big bucks on a $100k kitchen.

    Either that or tear down and build your dream palace. If it needs $400k in work, might as well tear down and start over.

  5. shadash
    shadash on January 12, 2011 at 3:54 pm

    I say buy it now and live in it the way it is. Over the next 5-10 years let the mortgage bleed you dry while watching more and more listings pop up at lower and lower prices. Then when the time is right sell for a loss or marginally break even on your money.

    * Conveniently brush away the opportunity cost of putting your money in an asset that is only “appreciating” because of inflation.

  6. Jerry
    Jerry on January 12, 2011 at 4:11 pm

    Shadash, you crack me up!

  7. Jeeman
    Jeeman on January 17, 2011 at 1:45 pm

    That place needs alot of work. It will take alot of money.

  8. Jeeman
    Jeeman on January 17, 2011 at 1:46 pm

    Also, the Master suite wasn’t all that impressive. You’re talking reconfiguring or adding on there.

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