Author: TheArcadian
August 21, 2008
1030 Heritage Oaks Dr.
Arcadia, CA 91006
Price: $1,098,000 ($336/sf)
- Beds: 6
- Baths: 4
- Sq. Ft.: 3,265
- Lot Size: 10,220 Sq. Ft.
- Year Built: 1976
At first this property seemed like a decent deal assuming you can knock $100-200k off the asking price. A 6 bedroom SFR for $336/sf? Seems like a steal in this bubble market. Then I started browsing through the photos. Either the owner who purchased it 8 years ago had the fashion taste of 2 decades before or they never bothered to update the interior:
So let’s knock another $100k off for upgrades and renovations. $800,000 is starting to sound like a great deal on this 3,265sf home ($245/sf). But… and there’s always a ‘but’ isn’t there? One look at the aerial map and I’d be surprised if anyone would even consider this home for $700k.
What a great view of San Gabriel Valley’s finest freeway!
Applying our standard appreciation table doesn’t help the evaluation of this property. I guess sitting next to the congested 210 freeway isn’t a highly desired amenity.
Last purchased in 2000 for $489,000.
After 8 years of ownership:
4% $669,230 ($205/sf)
5% $722,476 ($221/sf)
6% $779,392 ($239/sf)
7% $840,193 ($257/sf)
I am avoiding certain traits of a home I live in like diseases. And this home falls into one of the must avoidance – right on busy expressway 210.
I’ll only consider buying it as a rental unit. Assuming monthly rent of $3000 and GRM of 130 yields $390k.
Agreed. I would not move into this home even if someone gave it to me. But I have no problem renting it OUT though.
If you need up to 6 bedrooms then there are certainly a handful of kids in the household. I could not imagine having my children live next to the freeway.
Some of you may not know this, but there is a thriving business renting out rooms and parts of rooms to children of parents who cannot take care of them during the week. This home, despite being next to the fwy, would be perfect at the right price: $600 to $800 per child times 8-10 children would make this a nice profit center.
By kids do you mean 8-12 year olds? Or are we talking about high schoolers??
Grade school to high school.
8-10 children would require two full time nanny. One nanny can have max of 6 children under the law. Here goes the profit.
They’re usually family run.
Well on the bright side you don’t have a long commute to the freeway so you save about .50 / day on gas!
Avoid avoid avoid