Author: SavedbyGrace
February 22, 2008
| Asking Price | $999,000 | ::: | Sq-ft | 2400 |
| Purchased Price | $850,000 | ::: | Lot Size | 14,500 |
| Purchased Date | 12/04/2007 | ::: | Beds | 4 |
| Days on Redfin | 10 | ::: | Baths | 3 |
| $/Sq-ft | $416 | ::: | Year Built | 1957 |
| 20% Downpayment | $199,800 | ::: | Area | Highlands |
| Income Required | $249,750/yr | ::: | Type | SFR |
| Est. Payment* | $5,051/month | ::: | MLS# | 12105594 |
*Estimated monthly payment assume 20% down, 30-yr fixed @ 6.50%
“THIS IS THE FIXER YOU’VE BEEN WAITING FOR * SHOW AND SELL!!!”
This flipper bought this dump 10 weeks ago and turns around to sell it for $149,000 profit after doing absolutely nothing to improve the property. It’s even worse than the flippers who list at wishing prices just because they put in some granite counters because this guy didn’t even bother to do that. They obviously don’t bother hiding that fact because it says right in the description that this is a fixer. Everything looks very dated in the pictures as well.
The strategy here was buy, wait about 2 months and re-list it for a profit. Um, okay. This might have worked back in 2005 when lenders gave away free money, but that’s long gone. Either he’s been living under a rock for the past year or just completely overtaken by greed. Something tells me it’s the latter.
I don’t understand the train of thought. Why would this flipper think that someone will actually purchase this property for $149,000 more than what he paid 2 months ago? There’s wishful thinking and then there’s just absurd thinking. It doesn’t make sense in any market, but it’s especially concerning in today’s drowning market. It shows that the kool-aid was flowing so fast and so abundantly during the boom that flippers and realtors are still overdosing on it in Feburary of 2008! How long will it before there’s no denying the facts?
Flipper – Shame on you for being so greedy.
Realtor – Shame on you for not acting in your client’s best interest.
Lender(s) – Shame on you for letting things get this bad.
Shame on all of you.
Is it possible that the house is bank owned, and that’s why it is being sold in such short a time? Also, did anyone read the la times story on rising rents? The idea of rents falling in the future seems to be dismissed pretty readily.
No, the information I found on the property details is consistent with what’s listed on Redfin and the owner is not a bank. Also, the mailing address is in a nearby socal city so this particular property is not an REO. This flipper put down 15% spread over two loans.
The article on rising rents on the LA Times today cites increasing rents in apts. People can also rent condos, townhomes and SFRs during the town turn and still save a bunch over buying. As more condos/SFRs are left unsold, some owners will hope to ride it out by renting and that will increase the supply of homes for rent.
Most importantly, rents are directly tied to income so I don’t see a significant rise in rents without rise in local income – which seems unlikely with our current economic conditions.
This listing is insulting even to the average Joe. $149,000 in two months….the seller might as well go straight to a local BofA branch with a ski mask.
Haha I never thought of it that way but it’s basically the same thing.
Keep us updated on this. It’ll be interesting to see how much the house sells for.
LOL love the post. I hope the flipper gets what he deserves…a short sell. =)
Wow. 1 mil for this POS. It looks like the current owner will be the knife catcher.
The owner is crazy. But this could be a really cool house. It is a great example of mid-century modern post-beam construction. I drove by it and peeked in the windows. It is very rough, but also very cool. I sure hope the person who ends up buying it is respectful to the original architecture.