Real Bad ROIs in Irvine

Any time you buy and sell properties that quick, closing costs are going to eat into the return pretty heavily.
 
The problem with your roi calc is you are doing it on the primary residence. People need a place to live. So if you are not paying interest you would have to pay rent. And 19k for rent is probably too low. So some of your property taxes/HOA, etc need to be allocated to rent. So you are overstating the negative ROI (or understating the ROI)

If it was an investment property, your current math is more accurate.
 
How do I unlike a thread?

Just kidding, this is actually informative for anyone looking to invest in Irvine... which we've had tons of threads about how it's not the best idea.
 
Another Eastwood Runner:https://www.redfin.com/CA/Irvine/114-Canvas-92602/home/112723877

Decided he didn't want to live across from the Mobile Home park after 2 weeks.  I hear a lot of senior citizens have been coming to Eastwood park and pool trash cans to collect empty soda cans.  This owner must have gotten fed up quickly.

Bought September 1st for $649k
Sold September 19th for $638k

Minus closing cost and RE commission... that must have been a really bad month for poor guy.
 
Burn That Belly said:
qwerty said:
The problem with your roi calc is you are doing it on the primary residence. People need a place to live. So if you are not paying interest you would have to pay rent. And 19k for rent is probably too low. So some of your property taxes/HOA, etc need to be allocated to rent. So you are overstating the negative ROI (or understating the ROI)

If it was an investment property, your current math is more accurate.
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1. People need a place to live.
True - but they can live with mom and dad like the millennials and centennials.

2. If it was an investment property, your current math is more accurate.
Assume it is, just like empty FCB stucco boxes.

But the 114 Acamar owner could have rented a simple 2 bedroom and kept all the difference in money and invested in the stock market. He'd likely be on top than if he had just flipped so fast.

He could have rented this for $1,900.https://www.zillow.com/homedetails/60-Clearbrook-50-Irvine-CA-92614/25752076_zpid/

12 months in and he'd only spent $22,800 on rent. He wouldn't need to pay property taxes either!  That means he would not be out the $31 grand.
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Terrible comparison.  1700sqft vs 900 sqft?  How about finding a 1700sqft rental to compare with?

I agree with your sentiments about short term flipping in GP, but your comparisons are terrible.
 
So, this what Delano Sale Team have to resort to these days huh, to bash other Irvine hoods and to justify their over priced attached box. I am convinced, that there must be a bunch of bore sale people either at Delano or Ratwood, or both preying on the next customers. Or Fool, but they are so nice to use customer instead.
 
Wow, this is worse than I thought... Second owner of this Eastwood property really got screwed:https://www.redfin.com/CA/Irvine/147-Damsel-92602/home/112724316

Bought in Feb 2018 for $738k
Sold just 2 weeks later for $663k

That's quite a bath to take in a couple weeks, feel bad for that guy.

Thankfully the third owner made $45k when he sold it again 2 weeks later.  But after closing cost and RE fees on both transactions... probably didn't fair so well.
 
aquabliss said:
Wow, this is worse than I thought... Second owner of this Eastwood property really got screwed:https://www.redfin.com/CA/Irvine/147-Damsel-92602/home/112724316

Bought in Feb 2018 for $738k
Sold just 2 weeks later for $663k

That's quite a bath to take in a couple weeks, feel bad for that guy.

Thankfully the third owner made $45k when he sold it again 2 weeks later.  But after closing cost and RE fees on both transactions... probably didn't fair so well.
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Are you sure some of these aren?t builder placeholders?  Meaning they?re actually different homes that sold. I think your first one was real though. 
 
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