Low End Getting Lower
Sorry for the lack of updates. I've been traveling quite a bit (to Florida and Baltimore, MD--two hotbeds of real estate disaster).
Today I'm going to avoid talking trash* and am featuring a seller that should be applauded for their acceptance of reality and their no-holds-barred pricing strategy.
Address: 1833 E APPLETON St #8, 90802
Asking Price: $165,000
Size: 1 beds, 1 baths, 684 sq. ft.
$/Sq. Ft.: $265
HOA Fee: $90
Purchase price: $260,000
Purchase date: 1/2006
MLS#: I07143120
On Redfin: 273 days
Down Payment: $24,750
Monthly Payment: $1,200
Income Requirement: $41,250
Description: FOR MORE INFO SEE AGENTS COMMENTS. SPACIOUS, TURNKEY CONDO, 2ND FLOOR UNIT WITH BALCONY & PLEASENT VIEW OF PARK LIKE COURTYARD. UNIT FEATURED HARDWOOD FLOORS, & CLASSIC CERAMIC TILE, NEWER KITCHEN CABINETS, BUILT IN MICROWAVE, STOVE, DOUBLE PANE WINDOWS THROUGHOUT. EXELLENT LOCATION IN DESIRABLE ALAMITOS BEACH , JUST FEW BLOCKS FROM THE OCEAN, AND WALKING DISTANCE TO THE PARK, SHOPS, AND RESTAURANT. SELLER'S IS HIGHLY MOTIVATED, PRICED TO SELL FAST ! BANK APPROVED !!!! EASY SALE, NO MORE WAITING CLOSE IN 30 DAYS.
Today I'm going to avoid talking trash* and am featuring a seller that should be applauded for their acceptance of reality and their no-holds-barred pricing strategy.
Address: 1833 E APPLETON St #8, 90802
Asking Price: $165,000
Size: 1 beds, 1 baths, 684 sq. ft.
$/Sq. Ft.: $265
HOA Fee: $90
Purchase price: $260,000
Purchase date: 1/2006
MLS#: I07143120
On Redfin: 273 days
Down Payment: $24,750
Monthly Payment: $1,200
Income Requirement: $41,250
Description: FOR MORE INFO SEE AGENTS COMMENTS. SPACIOUS, TURNKEY CONDO, 2ND FLOOR UNIT WITH BALCONY & PLEASENT VIEW OF PARK LIKE COURTYARD. UNIT FEATURED HARDWOOD FLOORS, & CLASSIC CERAMIC TILE, NEWER KITCHEN CABINETS, BUILT IN MICROWAVE, STOVE, DOUBLE PANE WINDOWS THROUGHOUT. EXELLENT LOCATION IN DESIRABLE ALAMITOS BEACH , JUST FEW BLOCKS FROM THE OCEAN, AND WALKING DISTANCE TO THE PARK, SHOPS, AND RESTAURANT. SELLER'S IS HIGHLY MOTIVATED, PRICED TO SELL FAST ! BANK APPROVED !!!! EASY SALE, NO MORE WAITING CLOSE IN 30 DAYS.
Now, I realize this is a short sale and in all likelihood will not be approved at this price, but according to the listing it's ready to go. How many times have you seen "bank approved!!1!" yet the property sits and sits for months? Forgive me for calling bullshit.
Since I'm refraining from talking trash today, I won't criticize the all caps description, I'VE GONE BLIND, THANKS ASSHOLE
the myriad grammatical and spelling errors, "EXELLENT"? "PLEASENT"?
or the failure to make any kind of staging effort. Nope. Not gonna do it. Holy crap! is that a dead mouse in middle of the floor?? What the f**k is wrong with these people?
Instead I want to point out something amazing:
THIS BABY ALMOST MAKES INVESTMENT SENSE. but is still overpriced
When was the last time (or the first, for that matter) you saw that? Here, check it out:
Monthly Mortgage Payment (not including the small tax benefit): $1200
Monthly Rent Payment: $900
If someone bought this as an investment property, it would be cashflow negative to the tune of $300 per month. However, if a buyer rented it out, the $90 HOA fee could be written off as well. Given, as an investment property there would likely be higher interest rates and down payment requirements, but by my quick calculations this almost makes sense as a purchase.
Monthly Mortgage Payment (not including the small tax benefit): $1200
Monthly Rent Payment: $900
If someone bought this as an investment property, it would be cashflow negative to the tune of $300 per month. However, if a buyer rented it out, the $90 HOA fee could be written off as well. Given, as an investment property there would likely be higher interest rates and down payment requirements, but by my quick calculations this almost makes sense as a purchase.
Which is exactly why the bank will never approve it.
However, considering the downward pricing pressure in the surrounding neighborhood, the bank would be smart to let this go STAT. They're even more idiotic than I thought if they hold up this sale.
This property, just .04 miles away is priced at $139,000.
The neighboring building isn't as nice. GGood god, what a dump
However, it's still a comp. A scary, scary comp
Although 1833 Appleton makes sense at the current price I doubt it will actually sell for $165,000. Because the bank will likely drag its feet approving the sale, the property will continue to rot while surrounding prices plummet further. And even though this starts making sense at $165,000, it us STILL overpriced and doesn't align with local incomes. For f**ks sake, it's priced a whopping 65% more than the 2003 price.
However, it's still a comp. A scary, scary comp
Although 1833 Appleton makes sense at the current price I doubt it will actually sell for $165,000. Because the bank will likely drag its feet approving the sale, the property will continue to rot while surrounding prices plummet further. And even though this starts making sense at $165,000, it us STILL overpriced and doesn't align with local incomes. For f**ks sake, it's priced a whopping 65% more than the 2003 price.
However, in the interest of staying positive, this seller has seen the light and should be commended. Not that he had a choice. He overpaid and couldn't handle the payments. An idiot of the highest order.
Although the loss to the bank will be more than $100,000 and the seller will ruin their credit, a short sale on this place will mean a quicker return to basic fundamentals and an end to this housing nightmare unnecessarily prolonged by greed and abject denial.
*Highlight the text to reveal a special surprise.
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