Cruising N. County Foreclosures

by | Feb 20, 2011 | Bubbleinfo TV, North County Coastal, REO Counts, REOs Coming to Market | 12 comments

The flow of North San Diego County foreclosures has picked up nicely.

Last year between January 1st and February 18th, there were 42 SFRs foreclosed, and this year there were 62, which is a 48% increase.  Here’s a look at a few:

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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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12 Comments

  1. lgs
    lgs on February 20, 2011 at 7:02 pm

    maybe the kid was a budding jim the realtor getting in some practice!

  2. Alex Aguilar
    Alex Aguilar on February 20, 2011 at 7:28 pm

    Jim, just curious what type of camera you use and what program if any you use to edit combine the clips before uploading to YouTube.
    Thank you!

  3. CV Owner
    CV Owner on February 21, 2011 at 7:23 am

    I think the Via Marbrisa is in contingent status already. We went to look at this for our investment property a few weeks back and it was listed at 499k. We made an offer but got outbid. From what I saw needed a full renovation job.

  4. Local Boy
    Local Boy on February 21, 2011 at 8:20 am

    Can someone please explain to me how a house such as Via Marbrisa can make a good “Investment Property”–has to be priced at 15 times gross or higher.

  5. Jim the Realtor
    Jim the Realtor on February 21, 2011 at 8:22 am

    It was listed as a short sale up until last month at $499,000, but in cancelled file now.

  6. Jim the Realtor
    Jim the Realtor on February 21, 2011 at 8:32 am

    “make for a good investment property” is just code for nobody in their right mind would buy that to live there.

    Whether it makes sense as a rental is more related to the available down payment these days. I think there is so much cash floating around looking for returns higher than 1% that the standard is much lower than it used to be.

  7. François Caron
    François Caron on February 21, 2011 at 9:00 am

    From 2.6M to 1.4M? Ouch! That’s two reasonably priced small homes right there!

    Oh, and Jim…

    BUSTEEEEEED!!! 🙂

  8. CV Owner
    CV Owner on February 21, 2011 at 10:15 am

    “Whether it makes sense as a rental is more related to the available down payment these days. I think there is so much cash floating around looking for returns higher than 1% that the standard is much lower than it used to be.”

    And this is what we’ll be doing. Putting down 50-60% down payment on our investment property. Looking in the range of 500-750k in Carlsbad and surrounding areas. Our money is earning 1.10% in an ING savings account. We don’t like playing the stocks so RE is what we like.

  9. Local Boy
    Local Boy on February 21, 2011 at 11:49 am

    I have always liked Real Estate as an investment as well (tangability, tax advantagess, ability to leverage, a hedge against inflation, etc..). However, a SFR priced at $500-750K, valued at roughly 15 times gross potential income, does not excite me–it probably works out to a 3-4 cap. For me, with interest rates low, 10 times gross things start to make sense, but those will most likely be in outling areas (Escondido, El Cajon, etc…) How about 2-4 units properties?

  10. clearfund
    clearfund on February 21, 2011 at 9:50 pm

    If you are of a real estate investment mindset, I suggest taking a look at the commercial side of the world these days.

    In the past 6-9 months we have finally seen banks willing to sell foreclosed commercial property at prices that now make sense. Rents have been slashed by 50% from the peak and you can earn a good 7%-9%+ all cash yield (higher with leverage).

    When rents rise again your yield will increase as will your bldg value. Not a 1 year flip play, but with a 5 year horizon on good, central SD property you will be very happy.

    On a $/sf basis we are seeing some deals where rents and bldg value have not been for nearly 30 years. Most deals are ‘off market’ as commercial doesn’t list openly or have an MLS, but they are available.

  11. livinincali
    livinincali on February 22, 2011 at 9:15 am

    There’s some yield to be had in commercial property right now, but I’d stay away from the single tenant situation. Multi-Family > 4 units is considered commercial property and can be a pretty decent cash flow investment. Obviously these type of investments require a sizable cash down payment to make them work, but for someone in the situation with a lot of cash and a need for some relatively safe yield, commercial investment property is a solid option.

    Of course commercial property functions a lot like residential real estate where the good deals are hard to come by and many good deals are done through inside channels.

  12. Local Boy
    Local Boy on February 22, 2011 at 9:22 am

    Clearfund-

    Are you seeing commercial buildings that are leased-up and re-stabilized producing those returns, or are they heavily vacant with upside from there. Also, can I assume they are in the retail sector?

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