[quote=SD Realtor]SK in the areas you mentioned no way you turn a positive cash flow on a SFH at 20% down. Also I am starting to see gaps in comps. For instance older homes in say Westwood of RB that we selling in the high 400’s and low 500’s are now gapping into the high 500’s rather then ramping. Another thing that has pushed some of the gaps is investors coming in and flipping. A home that sold for 430k in September just closed for 575k in February. Again, not fun being a young couple looking for a home to buy.[/quote]
That “young couple” needs to start shopping Lemon Grove or Chula Vista. I’ve seen some very high-quality flips sell recently in these areas for the $350K to $425K range. A couple of them recently sold VA/FHA so these “flipper-sellers” are accepting offers from buyers who don’t have a huge downpayment.
Yes, I KNOW what the properties were before so these flippers appear to have spent as least $25K in materials on them PLUS labor.
Of course, you’re aware, SDR, that it doesn’t matter what the flippers paid for the former sh!thole that no one but a cash investor would buy.
I think flippers doing good-quality work are actually performing a public service by revitalizing neighborhoods and upgrading and enhancing homes that otherwise would never sell and continue to be rental eyesores.
