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Offline YellowFever

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« on: January 28, 2016, 05:25:27 PM »
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« Last Edit: April 22, 2017, 05:02:29 PM by YellowFever »

Offline AW

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Re: Why do Tustin homes not appreciate much?
« Reply #1 on: January 28, 2016, 05:33:34 PM »
Train tracks

Offline SubSolar

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Re: Why do Tustin homes not appreciate much?
« Reply #2 on: January 28, 2016, 05:40:51 PM »
It's an attached condo.

Offline eyephone

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Re: Why do Tustin homes not appreciate much?
« Reply #3 on: January 28, 2016, 06:08:55 PM »
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 unit https://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.

Cash flow positive?

Offline nosuchreality

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Re: Why do Tustin homes not appreciate much?
« Reply #4 on: January 28, 2016, 06:27:21 PM »
Given the first lineup the descriptio  is great for someone that likes to watch trains and the metrolink station is just across Jamboree, I've got to imagine  that its location will impact your tenant pool and turnover as much as the price.

Offline YellowFever

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« Reply #5 on: January 28, 2016, 06:52:43 PM »
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« Last Edit: April 22, 2017, 05:02:25 PM by YellowFever »

Offline nosuchreality

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Re: Why do Tustin homes not appreciate much?
« Reply #6 on: January 28, 2016, 07:11:02 PM »
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.

Offline Bullsback

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Re: Why do Tustin homes not appreciate much?
« Reply #7 on: January 28, 2016, 08:18:14 PM »
There are also a ton of affordable housing in there.  That said, I couldn't tell you what your appreciation would have been in Irvine (for a condo) if you bought in 05 (as prices were already inflated than). Depends on area of Irvine, some have passed those levels, others haven't.  A lot of the stuff in that part of Tustin was sold pretty much at the peak. 

Offline Bullsback

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Re: Why do Tustin homes not appreciate much?
« Reply #8 on: January 28, 2016, 08:20:42 PM »
I personally actually like that area...well not the one right on the tracks, but colombus groves area and it is an area I watch. That said, some parts of that area are close to train and/or have power line issues (plus depending on the area, tax rates are higher). The location is very ideal for me though and I happen to like some of the floorplans there (on the larger stuff). That said, the stuff that has been on the market more recently has been priced a little high / not a fit for me.   

Offline eyephone

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Re: Why do Tustin homes not appreciate much?
« Reply #9 on: January 28, 2016, 08:26:33 PM »
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.

They don't get the cash flow positive. Magic didn't respond To my question.

Offline Cornflakes

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Re: Why do Tustin homes not appreciate much?
« Reply #10 on: January 28, 2016, 11:28:50 PM »
And, let's not forget $245 HOA.

HOA, Train tracks, Attached condo, power lines...There you have it. Recipe for appreciation (not).

Offline superbobbay

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Re: Why do Tustin homes not appreciate much?
« Reply #11 on: February 06, 2016, 07:26:05 PM »
I used to live on Liberty st. On the 3rd floor, the train actually shakes the room. 1st floor you actually get used to the train and begin to stop hearing it.

Offline YellowFever

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Re: Why do Tustin homes not appreciate much?
« Reply #12 on: February 07, 2016, 10:53:33 AM »
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« Last Edit: April 22, 2017, 05:04:22 PM by YellowFever »

 

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