Author: TheArcadian
May 13, 2008
535 W. Duarte Rd. #41a
Arcadia, CA 91007
| Asking Price | $428,000 | ::: | Sq-ft | 1,218 |
| Purchased Price | $380,000 | ::: | Lot Size | (Condo Complex) |
| Purchased Date | 11/4/2005 | ::: | Beds | 2 |
| Days on Redfin | 83 | ::: | Baths | 2 |
| $/Sq-ft | $351 | ::: | Year Built | 1972 |
| 20% Downpayment | $85,600 | ::: | Area | Duarte/Lacadena |
| Income Required | $107,000 | ::: | Type | Attached Condo |
| Est. Payment* | $2,164/month | ::: | MLS# | A08024975 |
*Estimated monthly payment assume 20% down, 30-yr fixed @ 6.50%
Another “motivated seller” listing. I would be motivated too if I had put a $180,000 down payment (47%) on this property right before the peak of the bubble (which this buyer did). If this property were to sell for its asking price, the seller would essentially break even after 2 years of property taxes, monthly mortgage and paying sales commission.
To sell for anything lower than asking price and the owner will start seeing his/her equity being chipped away. Assuming there are no HELOCs, I can tell you that this is one property the lender doesn’t have to worry about going into foreclosure.
Sales History
July 07, 1992 $165,000 –
Nov 04, 2005 $380,000 6.5%/yr
This looks like another apartment complex that was converted into a condominium during the early 90s. Similar sized units can be rented for around $1,700/month so the $428,000 asking price is nuts:
Mortgage Payment: $2,164
Association dues: $248
Property Taxes: $392Cost to own = $2,804 vs $1,700 to rent
Although it’s obvious to us now that this property is not worth $428,000 or even the $380,000 it was purchased for, logic and reason were thrown out the window during the height of our real estate bubble. As long as real estate appreciated at double-digit figures, any kind of property was worth purchasing; desirable… or not!
I see very little chance of this property selling when its neighbor at 585 W. Duarte is going for $30,000 less, a bit bigger and still unsold after 2 months. This is surely a race to the bottom where there will be no winnerers.
For those readers on AHB who have actual property management/investment experience; I have one question for you folks: If comparable units are renting for $1,700/month, at what price would you realistically jump in to buy this condo?
Old condo conversion like this starts making sense at GRM 120. GRM 100 is a decent deal.
$170k-$200k will start attracting the investor sharks.
figure rent -hoa x 120, so $1700 -$250 = $1350 x 120 = $162k for an investor.
it is, afterall, a 36 year old apartment with no garage that from the pictures does not seem to have been updated.
The question is, how long will it take (or will it ever) reach fundamental value for an investor, or even an owner occupant at $215k?
oops, except I can neither do math, nor edit…
$1450 = $175k or $235k