YellowFever
New member
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MagicJ1zz said:My fiance and I are considering buying a second primary home in Tustin (but school zoned to Irvine) since it appears that $/Sqft is a better deal. And we don't need a McMansion and ridiculous MR and HOA.
Anyhow, I found an interesting unithttps://www.redfin.com/CA/Tustin/105-Liberty-St-92782/home/5953322
but I can't understand why it's so cheap. $294/sqft is an absolute fire sale! And it is zoned to Irvine school district.
The seller only bought it for $531k in 2005 and selling for $575k in 2016. He'll barely make any money. Although 2005 wasn't the height of the market yet. 2006.5 was.
nosuchreality said:I don't know if it would cash flow for the current owner. Assuming he was crazy in 2005 and put 20% down his monthly sunk costs on PITA is $2600 and change.
Add another $300-$400 a month in expenses/maintenance and vacancy allowance and you're looking at a $3000/month nut to cover. Granted, $700 is your principal, so it's not like you're making nothing. Just a half million dollar debt that comes with $10,000 a year of tax/HOA bills seems like a pretty big obligation to pick up $700/month all back loaded.