Details: 2 houses (3 bed/1 bath and 2 bed/1 bath), 7,500 sq ft lot, R3 zoned, foreclosure
Description: Fantastic duplex 6 blocks from the beach. There are 2 houses situated on one lot. The front house is a 3 Bedroom / 1 Bath with hardwood floors, covered front porch and laundry. Rear unit is 2 Bedroom / 1 Bath plus dining room and laundry inside. Great location close to tons of shopping, dining and recreation.Info herein is not verified by agent. Buyer to verify all info & rely on their findings. Offers must be submitted on CAR form w/pre-approval (NOT pre-qual), copy of earnest money check, proof of funds & agency disclosure. For guarantee receipt of your offer check private remarks for submission instructions.
Previous Purchase: 5/22/06 - $1,780,000
Bank "buyback": 6/1/10 - $1,255,500
Listing History: 6/23/10 - $1,325,000
SOLD: 9/1/10 - $1,400,000
I only listed the REO listing history above, but I just went back through my records and this property was on the market for 149 days as an attempted short sale (asking $1.5mm then down to $1.4mm) before the bank foreclosed. So what happened was that the short sale didn't go through, the bank then foreclosed and listed it for $75k less than the last price and after just 14 days on market it went into escrow and ended up selling above list price.
The bank moved quickly as the foreclosure occurred on June 1st and they had it on the market less than a month later and they listed it at a realistic price. The sale price represents a 21% decline from mid 2006 which should be indicative of a 2004 rollback. Finally, from the short sale listing: Both Units Currently Rented - For $3000 and $2200.
A cap rate, at best, of 4.5% (assuming zero expenses or vacancies)? Not exactly a compelling investment...
ReplyDeleteAgreed. Don't get it.
ReplyDeleteLots of idiots out there with more real estate bubble fever than math skills.
ReplyDeleteIf purchased for rental income, it seems like a poor investment (and it's a mystery why anyone chooses to be a landlord in Santa Monica).
ReplyDeleteBut only a *poor* investment, maybe not a batshit-crazy put-your-money-in-a-pile-and-burn-it investment. I call that progress.
If the plan is to get rid of the tenants and live there, then I would say $1.4 million is a good deal compared to many SFR listings on the market.
I'll give you that, Crash... this is, actually, improvement. I remember years ago Warchest featured a couple of small rent-control condos that some Realtor had bought for something like $500 or $600k each, despite long-term tenants paying only around $600/month.
ReplyDelete4.5% isn't a great risk-adjusted return, but it's hard to find yield anywhere these days. Not the worst possible idea for a retired/income investor.