I last featured 2009 Montana in November 2009.(lot) Purchase: 10/6/06 - $969,500
Listing History: 3/4/09 - $2,798,000
Reduced: 04/01/09 - to $2,598,000
Reduced: 05/02/09 - to $2,498,000
Reduced: 07/30/09 - to $2,198,000
Reduced: 08/11/09 - to $2,098,000
Reduced: ???????? - to $1,988,000
SOLD: 10/28/09 - $2,010,000
Rental Listing: 11/13/09 - $9,995/month
RENTED: 3/8/10 - $10,000/month
When I last featured this, I said the following:
I think they are asking way too much money for this as a rental seeing as how it sold for $2mm. You can rent a real house on a quiet street north or just south of Montana for much less than $10k/month.
Regardless of whether I think someone is nuts for renting this place for $10k/month, I was dead wrong about this.
I was excited when this house originally dropped to the $2mm level. Until I walked through the place. The construction was terrible, cracks were already showing in the floors and ceiling. The finishes were straight from Ace hardware. The layout was questionable at best. I had a one bedroom apartment in college with a bigger kitchen. I rent a place twice as nice currently for $7500.
ReplyDeleteThe $2mm sale is suspect, my wild guess is that one partner bought out another? Why else would anyone buy this ****box and then settle for $120,000 gross rent. Net of property tax, income tax and any carrying costs, this is a monumental misuse of capital. Unless you are a developer, unwilling to take a loss. Its a joke. You can earn 4% tax free in California Municipal bonds.
Can anyone verify that it actually rented for 10K? Or the procedure to to identify the actual rent in the MLS? I suspect one could fill in any number he or she wanted re rent when withdrawing the listing from the MLS. Note, the rent is $5 above the asking rent.
ReplyDeleteClick on the "RENTED" link on the post. My info is straight off the MLS and while brokers can lie all they want in the "description" portion of a listing, I believe it is a major offense to misrepresent a selling price in the "sold" field. Maybe they are cheating by throwing in some type of major concession (lot of months of free rent?)...I have no idea. I'm baffled, but whatever.
ReplyDeleteI have seen a trend in West LA (Rancho) where drug rehab companies rent white elephant houses and house their patients there. The house on the corner of Olympic and Overland rented that way. I am not suggesting that this is the case here, but it is an interesting type of client for large houses that can afford higher asking rents.
ReplyDeleteI agree with Mamsterla, this scary looking place would work very well as a drug rehab place or shelter for the homeless. Kind of looks like Building A in the movie Shutter Island.
ReplyDeleteThis would be great for all the people in the Franklin district!
ReplyDeleteThis is proof no one can predict the LA real estate market. There are people with real money to spend and they don't follow any conventional logic when spending their money in LA. What would be unheard of anywhere else just seems to occur in LA.
ReplyDeleteI think that's too broad of a conclusion, LosAngelian. All this house shows is that no one can be certain what will happen with a sample size of 1, because there are always outliers.
ReplyDeleteI m sick after looking at that ugly house
ReplyDelete