Remember this one, on the outskirts of North Vista?
2115 Vista Grande, Vista 92084
3 br/2.5 ba 1,996 sf
0.67-acre
SP: $725,000 6/05 (90% financed)
TS: $233,750 3/09 (back to bene WFB)
LP: $99,900 5/09
SP: $240,000 7/09 cash
They disclosed a bunch of non-permitted issues that the listing agent thought would take $60,000 to $100,000 to fix, but it didn’t stop somebody from paying almost 2.5 x list price!.
Here’s a link to the youtube video: http://www.youtube.com/watch?v=z3S5hz3rHsk
Ahhh yes… California dreamin!
There’s a good number of all cash offers these days on junk properties. Makes sense since they have the leverage to fix the problems and potentially rent for a profit. Good luck though!
Expect to see it listed again, within 12 mos. It smells like a seller-financed scam.
I think it is worth $200K considering 0.67 acre land. So the seller just overpaid by about 20%. Not a terrible deal (at least as an inflation hedge, if you consider our current $ will be worth about 25 cents max in 10 years after the stagflation).
The urgency of the deal made it seem like it definitely needed the 100k sewage pipe put in. Those palms could be worth something in the future if San Diego starts building again.
Jim, your Solana Beach sign is down. You gone pending on us already?
No sale yet in SB.
The sellers are believers though, listing originally at $1.699, as a similar-sized house was selling down the street for $1,706,500.
But no offers, so we lowered early and often, and after four weeks we’re down to $1,499,000.
But no offers.
The house is paid off, so there’s an income potential that they’re going to utilize. They advertised it for a reasonable $3,500/month rental, and got inundated with applicants.
I took the sign down because I was getting so many tenant calls!
They have a leading candidate, so we’ll probably cancel this week once they ink the lease.
This was probably a halfway decent little old house, before it was remodeled by someone with delusions of competence.
Jim,
$1.5M financed 80% at current rates translates to $7K a month, double the rent they’re asking. Doesn’t that effectively set a drastically lower comp? I mean, why would I buy a house (and put up $300K in cash) just to pay twice as much monthly, especially when there’s a greater chance of depreciation than appreciation?
No question why you were inundated with potential tenants.
tj,
You’re forgetting property tax — another $1500 a month! And it’s not deductible, because you are deep into AMT territory at that point.
And this property is priced a lot better than other nearby listings. There’s a near-teardown on Granados asking $1.1m, and the small old house on Canyon that’s taken a year to go from $2.1m to $1.7m. Then the strip-mall-view condos on Rios asking $1.6m. The price to rent ratio is absolutely out of control in the beach areas.
Its not subprime anymore:
http://www.sacbee.com/static/weblogs/real_estate/archives/2009/07/new-face-of-the.html
Thanks arizonadude!
The thought of prime fixed-rate mortgage holders going late on their payments (quadrupled in two years) is a shocker, but I think I can top it.
The local association of realtors has published the latest election results:
2010 OFFICERS & DIRECTORS
Director, District 1: Maria Weiss
Director, District 3: Portia Metras
Director, District 5: Jenae Politovich Peckham
Director, District 7 : Diane Conaway
Director, District 9 Larry Wight
That’s right the same Jenae that was responsible for burning lenders for close to $4 million got elected to lead us into the future!!!!!!!!!!!!!!!
Any thoughts on who are the “cash” investors. I know of at least a few people who took the money out of their primary residence. It is going to be sad when they leave La Jolla for Vista.
The other might be “vulture” funds. However do they have the expertise and diligence to make sure the unit gets rented to someone who will not wreck the place?
I just think that the land value might be more than some of the prices being paid but can the buyers actually sustain the prices they paid.
BTW I guess Janae did not need to leave town after all.
Hi Jim,
re: Solana Beach… even 200x rent (which is considered a bubble in most areas) puts that property’s fair market value at $700K. A far cry from its asking price!
Too bad it wasn’t on the market for rent a few weeks ago or I might have opted to lease it! It’s a beautiful place. But really, I am happy with our (slightly older, about the same size, a bit cheaper per month) rental here in Solana Beach.
-Erica