Bloodbath in Kensington !

[Irish]

Here’s a flipper taking a bath in the fashionable neighborhood of Kensington (where our beloved Mayor resides). I can smell the desperation in the air…how sweet it is !

Address 45XX Van Dyke Ave

Purchased 2/20/04 $642k
Listed 8/10/06 $789k
Reduced 11/13/06 $699-749k
Listing expired
Relisted 3/8/07 $595k

That’s a 7.2% loss on the 04 purchase (not including sales commissions and carrying costs)
This must be VERY painful considering they thought they stood to make $147k profit in August 06.
All I can say is OUCH !
How’s your neighborhood doing this weekend

[sdrealtor]

Flippers generally dont put 20% down and live in a home for 2.5 to 3 years. I say he’s an unfortunate buyer who got in at the peak rather than a flipper.

[Bob G]

Could be considered a “stealth” flipper. This is someone who trades way up with the intent of selling later to make an easy profit. Most folks who buy a house as their residence aren’t looking to sell it a couple of years later. A friend of mine in the early 90s was a stealth flipper. He sold a smallhome, and bouth a huge one with a down payment. The market went down, and he then lost all. Then he was assesed by the IRS to pay income tax from the forgiven loan.

Signed,
Ignorant Dipsh_t

[PerryChase]

It seems like 80% of the buyers are “stealth” flippers.

[Bob G]

I don’t know what criteria for stealth flipper is. Certainly someone who buys more home than they want, or that they could afford in the long run. Maybe anyone who bought with the intent of turning a profit in the short term (less than 3 years).
The first criteria cannot be determined by analysis.
The second criteria could be, by looking at the buyers income versus loan payment, after the loan resets.
The last criteria is self evident, it someone puts their house up for sale a couple of years after purchasing it, they may be a stealth flipper, provided they don’t have a reason for selling, like job move, etc.

Signed,
Ignorant Dipsh_t

[Irish]

I love that term “unfortunate buyer”. Is that new on this board ? Should I get my hankerchief out and have a good cry for some opportunistic dufus who thought he’d make a quick $147, 000 only to find he’s NOW F**CKED ?
It’s people like that who have driven prices up to this astronomical level in San Diego and I have absolutely zero sympathy for them. May they go down in flames and learn a good lesson…poor unfortunate buyer, indeed.
Oh, and by the way, happy St Paddy’s Day to all ye unfortunate buyers and yer realtor representatives.

Irish

[DaCounselor]

Had to weigh in on this one. Looking at this scenario in a vacuum, it is a clear loss for the homeowner on this deal. Of course, it’s the big picture that really counts. Did this person own property prior to this purchase? How many parcels, where, and for how long? How much money did this person make on real estate over the years?

I find it very short-sighted to conclude this homeowner is -as someone so eloquently stated – f’ed – because it looks like they may take a $150K loss on this particular deal. For all we know, this homeowner may have profited handsomely from prior deals to the extent they still have an excellent net gain.

Jumping to conclusions and viewing these types of situations in a vacuum are two rookie mistakes when it comes to analyzing a particular investor’s level of success.

[Anonymous]

Unfortunate buyer is a euphonism for DUMBSH*T

[citydweller]

Did this unit on Van Dyke ever sell? What was the sales price?

[Anonymous]

The listing agent increased the list price to $675K. Went into Pending after 19 days on the market.

[masayako]

Irish,

I agree with you. I am happy to see housing price is returning to normal. Absolutely no sympathy to those who bought to flip for a profit and couldn’t get out in time. See ya at the bottom of the hill, guys.

[DaCounselor]

“The listing agent increased the list price to $675K. Went into Pending after 19 days on the market.”
______________________________

Thanks RiU. I’m certainly interested to learn what the sales price was so we can all see the level of “bloodbath” on this deal.

[DaCounselor]

According to a friend who lives in the neighborhood, this home sold for $681K in a few weeks. Not exactly the “bloodbath” that the original post so proudly and excitably proclaims.

Anyone developing an appetite for a little crow?

[no_such_reality]

The San Diego Recorder hasn’t gotten it yet. A lot of money for a little 3/1. At least it’s an SFR.

Hmm, 45XX Vista St. (the next block over in the neighborhood) is same configuration and slightly larger, listed as sold 3/7/07 for $584K.

double Hmm, go the next block west and you get to Biona Ave.
46XX Biona Ave is a 3/1 and a little larger, listed as sold twice on zillow, once on 1/19/2007 for $509K and then one week later 1/25/07 for $629K. (Maybe that’s a foreclosure and REO flip).

[Anonymous]

The house closed on 4/26/07 for $681K.

[Author]

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