Your thoughts on this property?

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biscuitninja_IHB

biscuitninja_IHB

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The property is <a href="http://www.redfin.com/CA/Corona-Del-Mar/415-Marigold-Ave-92625/home/4732357">415 Marigold Ave</a>, it looks decent but seem to me about 50% overpriced. What are your thoughts?

If so let me know.



-bix
 
There are a few guys who specialize in buying those R2 lots in CDM, tearing down the existing, building two new condos, and then selling them for a profit. It occurs to me, why have they not bought this lot? Have I built enough sucessful spec homes that I could compete with the local spec builders?

Isn't Marigold a busy street?
 
Being across the street from the fire station doesn't seem that desireable (noise). Notice that the neighboring properties (including the eyesore of a public library), are a lot of original construction homes.
 
Capital,

I noticed those two things. You would think that for those two reason that the price might come down a little bit. But if you look around, that price is pretty similar to regular houses or even units in the area, but it is listed as a "fixer upper". For that price, you would already be pricing yourself out of the market. While there are homes in the EXPENSIVE range there, you'd certainly be catering to a very select clientele and as such, may not be able to sell it in timely fashion (hat Tip to Awgee).
 
Did you notice they say the rental income is only $3k.

Maybe my math is way off but unless you put down a HUGE down payment (680k) this is no way near having a positive cash flow.

What investor would buy this property at this price?
 
[quote author="halfnote19" date=1236063005]

What investor would buy this property at this price?</blockquote>


No one. Thats why it has not sold.
 
[quote author="halfnote19" date=1236063005]Did you notice they say the rental income is only $3k.

Maybe my math is way off but unless you put down a HUGE down payment (680k) this is no way near having a positive cash flow.

What investor would buy this property at this price?</blockquote>


Well if you look at the comps in the area, for rent, the MAXIMUM rental income for this unit tops out at around 800k in home value. When I looked at it, it needed quite alot of work. My best guess is about 70-100k to clean things up and bring the rentals up to code.



So around 680 seems like a good selling price. Unfortunately I think the price difference is SO far from there, that it is a no go.



Somebody might purchase it for a home though.

-bix
 
Someone should tell them <a href="http://www.zillow.com/homedetails/507-Marigold-Ave-Corona-Del-Mar-CA-92625/25498388_zpid/">507 Marigold</a> is scheduled for the auction next month for about $1mil.
 
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