Costa Mesa

There was on article on the owners of this property a few months back in the Daily Pilot. I did a search on their website, but couldn't locate the article and I don't remember all the details. Specifically, the article was focused on the code violations for the mess on the lot with just the poured basement. The neighbors aren't happy because it's been like that for quite some time. I recall the owners had a dispute with the contractor who poured the basement and before it could be resolved their construction loan line was cut. I do remember that the house they were going to build was their dream home and you got the idea from the story that they were going to lose everything.



This is what I'm not certain about recalling correctly... the splitting and building of the other house was partially how they were going to afford the dream house.
 
<a href="http://www.ci.costa-mesa.ca.us/council/agenda/2009-01-06/0106092258OrangeAve.pdf">Here is the laundry list of issues the city has with him</a>. He has admitted that he doesn't have the means to proceed, and really he is flat broke. He also owns the property at 2260, which he is in default on, as well as this property. He owes a bunch of back property taxes too. I almost feel sorry for him. I said almost.



I would pay $900k for both properties. Go to the city and get the permits to finish the one house, and begin construction on the second house. I would like to keep the basement, but I can already tell that, even though the city previously approved it, it would not be up to my standards. I would sell the first house for about $700k, and live in the second, and built to my tastes, house. After all is said and done, it would put my cost basis of the second brand new house at $600k. Which, is what I think a 3500 sqft. house, on 5000 sqft. lot, in then east side "apartmentville area" of CM is worth.



This mess will most likely go to the auction some time this summer. Who knows... if the bank discounts it heavily... then maybe this is what I will do? I will keep an eye out for when the NTS is filed on this one.
 
Speaking of CM... Is it just me, or has <a href="http://www.redfin.com/CA/Costa-Mesa/1578-Riverside-Pl-92627/home/4590051">this place</a> been on the market way longer than 76 days, and in fact has been ridiculed on IHB before?



I could swear I have seen this skeleton before.



http://media.cdn-redfin.com/photo/46/bigphoto/003/U9000003_3_1.jpg



And the drywall challenge of this.



http://media.cdn-redfin.com/photo/46/bigphoto/003/U9000003_5_1.jpg



At least it has an IHO approved garage.



http://media.cdn-redfin.com/photo/46/bigphoto/003/U9000003_8_1.jpg
 
1578 Riverside 999 100 689 6 3.00 3569 9500 6 1951 279.910339 Property is in the middle of a remodel and is not in move in condition. Bring your contractor. Property has a lot of potential.Huge lot at end of cul-de-sac located close to Newport Heights.Property needs completion and is sold in as is condition.Huge garage, fits up to 6 or more cars plus workshop area. Lot is R2 zoning and home was used as duplex in the past. Finish as single family or keep as duplex. Buyer to verify all information including square footage to satisfy themselves in purchase.

145 old 999 7.21.8





yes, a re-list at the same price it was listed at on 7/21/08
 
http://www.redfin.com/CA/Costa-Mesa/385-Broadway-92627/home/3557402



Will you Costa Mesa experts give me your honest assessment of this one. It was a mostly new construction in 2005 (they left a couple of the original walls of a cottage like structure and rebuilt, on a small lot in Mariners elementary district. The original structure was purchased in 1980s for cheap, but the house was rebuilt for 550-600k (per seller).



What would you pay for this? How much lower do you see this one going?



Thanks.
 
[quote author="Maltese" date=1237546576]http://www.redfin.com/CA/Costa-Mesa/385-Broadway-92627/home/3557402



Will you Costa Mesa experts give me your honest assessment of this one. It was a mostly new construction in 2005 (they left a couple of the original walls of a cottage like structure and rebuilt, on a small lot in Mariners elementary district. The original structure was purchased in 1980s for cheap, but the house was rebuilt for 550-600k (per seller).



What would you pay for this? How much lower do you see this one going?



Thanks.</blockquote>


$250/sf. $625,000. About what the homes over in Newport were going for in 2000.



However until the insanely low mortgage rates go away, we'll need to apply a premium to cheap money.
 
Seriously? 625k? It is basically a new custom home for around the construction cost. That would mean the land was free. I think you are way pessimistic. You will be lucky if you can find a tear down for 500k in Mariners district but then you need to build.
 
Are you saying that you could build a relatively high end property for 100-150/sq ft, or are you saying putting up a roof and 4 walls? Is this based on actual discussion with contractors or just speculation that construction costs have fallen?
 
I can build a relatively high end property with very nice materials for $200, and I can build a relatively high end property with pretty nice materials for $150. Copper materials are down over 60% from 2006, wood is down about 40%-50% from the peak in 2005. Most major production homebuilders like KB and Lennar, will build you a stucco box for $65-$75.
 
[quote author="Maltese" date=1237551293]Seriously? 625k? It is basically a new custom home for around the construction cost. That would mean the land was free. I think you are way pessimistic. You will be lucky if you can find a tear down for 500k in Mariners district but then you need to build.</blockquote>




It sounds as if you are trying to assign a value to the house, rather than determining what the market value is, or will be.





I agree with no-vas' estimate of $625k.



Not so much because of costs, but because there just are not a lot of buyers who have $175k incomes who want to live there. The market just isn't there to support $400/sf in even the best part (which this is) of CM. And the buyers that do exist will want to live in the nearby parts of NPB if they are going to pay $400/sf.
 
It is interesting. Not being from OC originally, I do not mentally assign a greater value to a Newport Beach address vs. Eastside CM, bu I know others do. The sellers of this property are trying to buy a fixer in Baycrest, which makes no sense to me. It is the same school district, same shopping areas, and it is a really nice block on a really nice street. We made an offer on this home but the sellers were stubborn with the price, so we decided to let it be. They have had no other action so now they came back to us offering to take our offer, but now I have lost the urge go for this one. If they drop 20% I will be a buyer, but I don't think they have the financial flexibility to make that happen.
 
Can someone with property record access help me figure out what happened here? It looks to me like it was REOd 9/8/8 for $560k, bt then a second REO happened on 3/12/9? or was this a bulk purchase of REO assets from the bank?



THANKS!!!



http://www.redfin.com/CA/Costa-Mesa/3098-Gibraltar-Ave-92626/home/3694265



Parcel #: 139-156-10



Property History for 3098 Gibraltar Ave

Date Event Price Appreciation Source

Apr 06, 2009 Price Changed $559,000 -- SoCalMLS #P679733

Mar 26, 2009 Relisted -- -- SoCalMLS #P679733

Mar 18, 2009 Off Redfin -- -- SoCalMLS #P679733

Mar 16, 2009 Listed $569,000 -- SoCalMLS #P679733

Mar 12, 2009 Sold $505,000 -18.5%/yr Public Records

Jan 26, 2009 Off Redfin * -- Inactive SoCalMLS #1

Jan 20, 2009 Listed * -- Inactive SoCalMLS #1

Sep 08, 2008 Sold $560,000 -28.0%/yr Public Records

Sep 27, 2007 Sold $765,000 25.2%/yr Public Records

Nov 10, 2006 Sold $628,000 -- Public Records
 
[quote author="freedomCM" date=1239101054]Can someone with property record access help me figure out what happened here? It looks to me like it was REOd 9/8/8 for $560k, bt then a second REO happened on 3/12/9? or was this a bulk purchase of REO assets from the bank?



THANKS!!!



http://www.redfin.com/CA/Costa-Mesa/3098-Gibraltar-Ave-92626/home/3694265



Parcel #: 139-156-10



Property History for 3098 Gibraltar Ave

Date Event Price Appreciation Source

Apr 06, 2009 Price Changed $559,000 -- SoCalMLS #P679733

Mar 26, 2009 Relisted -- -- SoCalMLS #P679733

Mar 18, 2009 Off Redfin -- -- SoCalMLS #P679733

Mar 16, 2009 Listed $569,000 -- SoCalMLS #P679733

Mar 12, 2009 Sold $505,000 -18.5%/yr Public Records

Jan 26, 2009 Off Redfin * -- Inactive SoCalMLS #1

Jan 20, 2009 Listed * -- Inactive SoCalMLS #1

Sep 08, 2008 Sold $560,000 -28.0%/yr Public Records

Sep 27, 2007 Sold $765,000 25.2%/yr Public Records

Nov 10, 2006 Sold $628,000 -- Public Records</blockquote>
On the MLS property records, it is flagged as a "bank owned sale" even though it is owned by an unmarried male. The property sold to an individual in a normal sale on 9/27/07 for $765k. The buyer used a first from Wells for $612k and a second from Wells of $150k to buy the property (you guessed it, a big $3k down payment). Wells took the property back on 9/8/08 for $560k and sold the property to the unmarried male on 3/12/09 for $505k. It doesn't show that a loan was recorded on the property (as of today). Looks like it's an investor trying to flip it to make a few bucks. Let me know if you need any other info.
 
thanks so much.



balsy trying to flip in the current environment unless you are starting with bulk, it seems to me.



even if he gets the $560, less $505 is $55, less 6% is $25k.



for a $25k payoff, he better be pretty darn sure he can sell it above what he paid last month!
 
[quote author="freedomCM" date=1239110196]thanks so much.



balsy trying to flip in the current environment unless you are starting with bulk, it seems to me.



even if he gets the $560, less $505 is $55, less 6% is $25k.



for a $25k payoff, he better be pretty darn sure he can sell it above what he paid last month!</blockquote>
Yup, very balsy to say the least. Looks like the buyer's commission is 2.5% so he may be selling it with a 4-5% total commission. It does not say that the listing agent is related to the seller in the agent-to-agent comments. In my mind, this guy will be lucky to break even since he hasn't gotten any bites and already had to reduce the price. The property is listed as vacant so it's definitely a flipper/investor. I like how he closed on it on Thursday and listed it for sale on the following Monday. haha
 
[quote author="usctrojanman29" date=1239111089]I like how he closed on it on Thursday and listed it for sale on the following Monday. haha</blockquote>


That is what cash for keys can do for you. Only thing is... it eats into your profits.
 
[quote author="w0lfgang" date=1217231814]What about the noise from the airplane traffic on the East Side? Yes, John Wayne has limits on when they can fly, yet doesnt that constant sound wear on you and should't it call for some kind of reduction in premium?</blockquote>
The west side has some annoying aircraft noise as well -- back when I lived near Harbor Blvd., police helicopters used to circle around for hours on most weekend nights, and frequently midweek as well. Not sure if that's still the case, though.
 
It's still the case with the helicopters. However, it's actually not a tremendous amount more than we had in CDM. Over there we could never figure out why the helicopters seemed to be seeking someone out nearly every night. My husband said he read something about traffic stops that resulted in arrests needed a picture. It wasn't always like that in CDM, just seemed to start up around '06. There's one overhead in CM as I type. Are they regular in HB or Irvine now too?
 
[quote author="stepping_up" date=1239190088]It's still the case with the helicopters. However, it's actually not a tremendous amount more than we had in CDM. Over there we could never figure out why the helicopters seemed to be seeking someone out nearly every night. My husband said he read something about traffic stops that resulted in arrests needed a picture.</blockquote>
You mean one taken from the air?



<blockquote>It wasn't always like that in CDM, just seemed to start up around '06. There's one overhead in CM as I type. Are they regular in HB or Irvine now too?</blockquote>
I don't spend time in HB often enough to be able to comment on that city, but I can only recall seeing / hearing one in Irvine <em>maybe</em> once or twice in the several years I've been living here.



I don't think Irvine has its own police helicopter, whereas Costa Mesa does (shared with Newport Beach and part-time with Santa Ana, apparently), and seems to like to get lots of mileage out of it (apparently patrolling with it rather than only pulling it out when called for). Here's an article I just found about CM possibly having to give up their helicopter due to budget problems:



<a href="http://www.dailypilot.com/articles/2009/02/07/topstory/dpt-ableprogram010409.txt">http://www.dailypilot.com/articles/2009/02/07/topstory/dpt-ableprogram010409.txt</a>
 
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