I would have to know more precise information to give you a more informed response. Suffice it to say that we have done a flip down that way and I have some clients who purchased in San Miguel Ranch as well for a similar ppsf. Again without examining very close in proximity comps it is hard to say but I “think” you are doing pretty well. What are your MR and HOA fees? Also what is the condition of the home? I think that ALOT of inventory down there has already siphoned through the foreclosure pipeline which may bode well for you. Hopefully all those were replaced by more qualified homeowners. There was alot of fraud down there at the frenzy times and people were picking up multiple homes with no money down. We had picked one up that I think sold for 1.1 or 1.2 back in the day for 465k at trustee sale a little over a year ago but those deals are long long gone. So you have not bought at the local bottom but you are maybe 10-15% above it.
Only time will tell how much cushion you have. There will be plenty more foreclosures down there for certain HOWEVER I don’t see that affecting your pricing as much because the govt has shown they can effectively control that spigot. As with everything else I think the issue of credit will be the big catalyst to downward spiral in the future. That can happen a year from now but is very unlikely. I think maybe a few to several years out is much more realistic.
