Is this a good deal ?

[sdrealtor]

FWIW I was in SCP house. I would have to pull out every inch of flooring in that house. The pictures look nice but the house has alot more wear and tear on it than they show. Photoshop is a wonderful thing. The SB homes are new construction, turnkey and under 10 year builder warranties.

Monthly payments have everything to do with the value of an asset. Ever heard of discounted cash flows when valuing an asset? Its the same as valuing an investment property but in this case the owner is the source of the rent payments. Someone who has probably never taken college level business courses wouldnt understand that.

[sdrealtor]

[quote=bearishgurl]More taxes at SCP … I agree, AN. But let’s presume all-cash sales in each subject sold comp.

How much $$ is the new owner of this Stonebridge property going to have to put into it in order for it to be a “true comp” to the SCP sold comp?

In other words, how much would all this cost to intall in the SB property?

…wrought-iron stair-railing and front door, italian marble, fountain w/trellis, pool, patio/deck, covered gazebo, mature landscaping, etc…

And if the SB property was upgraded to the same level as the SCP property, would it sell for as much? In other words, are the recent sold comps in SB comparable to the sold comps in SCP? Which area sells for more $$ and why?

$1,025,000 (SCP sold price) – 948,135 (SB sold price + 25 yrs MR) = $76,865.

Is this enough to make up for the difference in improvements of SCP over SB? And does the new buyer have at least this much cash “laying around” to make same or similar upgrades?

If the answers are “no” to the questions (directly above), then the SCP recent sold comp is NOT a true comp to the SB recent sold comp. It is in a different category.

Also study the recent solds of each community, the level of distress in each community and other factors such as high power lines and convenience to or lack of amenities of each community and then decide for yourself which area would fare better in the future. Of course, this is not too easy of an exercise since we don’t really know what the future will bring in this volatile economy. In that case, study past performance of each community and decide which community has fared better (from an investment standpoint) since say, 2001 (the start of the millenium boom/bust cycle).

Overall monthly payments have nothing to do with current value or potential resale value.[/quote]

One question BG. You put so much credence into how communities have fared in downturns. Why do you so highly advocate buying investment properties in the portion of SD that has traditionally gotten hit hardest in each cycle?

[sdrealtor]

[quote=bearishgurl]More taxes at SCP … I agree, AN. But let’s presume all-cash sales in each subject sold comp.

How much $$ is the new owner of this Stonebridge property going to have to put into it in order for it to be a “true comp” to the SCP sold comp?

In other words, how much would all this cost to intall in the SB property?

…wrought-iron stair-railing and front door, italian marble, fountain w/trellis, pool, patio/deck, covered gazebo, mature landscaping, etc…

And if the SB property was upgraded to the same level as the SCP property, would it sell for as much? In other words, are the recent sold comps in SB comparable to the sold comps in SCP? Which area sells for more $$ and why?

$1,025,000 (SCP sold price) – 948,135 (SB sold price + 25 yrs MR) = $76,865.

Is this enough to make up for the difference in improvements of SCP over SB? And does the new buyer have at least this much cash “laying around” to make same or similar upgrades?

If the answers are “no” to the questions (directly above), then the SCP recent sold comp is NOT a true comp to the SB recent sold comp. It is in a different category.

Also study the recent solds of each community, the level of distress in each community and other factors such as high power lines and convenience to or lack of amenities of each community and then decide for yourself which area would fare better in the future. Of course, this is not too easy of an exercise since we don’t really know what the future will bring in this volatile economy. In that case, study past performance of each community and decide which community has fared better (from an investment standpoint) since say, 2001 (the start of the millenium boom/bust cycle).

Overall monthly payments have nothing to do with current value or potential resale value.[/quote]

One question BG. You put so much credence into how communities have fared in downturns. Why do you so highly advocate buying investment properties in the portion of SD that has traditionally gotten hit hardest in each cycle?

[sdrealtor]

[quote=bearishgurl]More taxes at SCP … I agree, AN. But let’s presume all-cash sales in each subject sold comp.

How much $$ is the new owner of this Stonebridge property going to have to put into it in order for it to be a “true comp” to the SCP sold comp?

In other words, how much would all this cost to intall in the SB property?

…wrought-iron stair-railing and front door, italian marble, fountain w/trellis, pool, patio/deck, covered gazebo, mature landscaping, etc…

And if the SB property was upgraded to the same level as the SCP property, would it sell for as much? In other words, are the recent sold comps in SB comparable to the sold comps in SCP? Which area sells for more $$ and why?

$1,025,000 (SCP sold price) – 948,135 (SB sold price + 25 yrs MR) = $76,865.

Is this enough to make up for the difference in improvements of SCP over SB? And does the new buyer have at least this much cash “laying around” to make same or similar upgrades?

If the answers are “no” to the questions (directly above), then the SCP recent sold comp is NOT a true comp to the SB recent sold comp. It is in a different category.

Also study the recent solds of each community, the level of distress in each community and other factors such as high power lines and convenience to or lack of amenities of each community and then decide for yourself which area would fare better in the future. Of course, this is not too easy of an exercise since we don’t really know what the future will bring in this volatile economy. In that case, study past performance of each community and decide which community has fared better (from an investment standpoint) since say, 2001 (the start of the millenium boom/bust cycle).

Overall monthly payments have nothing to do with current value or potential resale value.[/quote]

One question BG. You put so much credence into how communities have fared in downturns. Why do you so highly advocate buying investment properties in the portion of SD that has traditionally gotten hit hardest in each cycle?

[sdrealtor]

[quote=bearishgurl]More taxes at SCP … I agree, AN. But let’s presume all-cash sales in each subject sold comp.

How much $$ is the new owner of this Stonebridge property going to have to put into it in order for it to be a “true comp” to the SCP sold comp?

In other words, how much would all this cost to intall in the SB property?

…wrought-iron stair-railing and front door, italian marble, fountain w/trellis, pool, patio/deck, covered gazebo, mature landscaping, etc…

And if the SB property was upgraded to the same level as the SCP property, would it sell for as much? In other words, are the recent sold comps in SB comparable to the sold comps in SCP? Which area sells for more $$ and why?

$1,025,000 (SCP sold price) – 948,135 (SB sold price + 25 yrs MR) = $76,865.

Is this enough to make up for the difference in improvements of SCP over SB? And does the new buyer have at least this much cash “laying around” to make same or similar upgrades?

If the answers are “no” to the questions (directly above), then the SCP recent sold comp is NOT a true comp to the SB recent sold comp. It is in a different category.

Also study the recent solds of each community, the level of distress in each community and other factors such as high power lines and convenience to or lack of amenities of each community and then decide for yourself which area would fare better in the future. Of course, this is not too easy of an exercise since we don’t really know what the future will bring in this volatile economy. In that case, study past performance of each community and decide which community has fared better (from an investment standpoint) since say, 2001 (the start of the millenium boom/bust cycle).

Overall monthly payments have nothing to do with current value or potential resale value.[/quote]

One question BG. You put so much credence into how communities have fared in downturns. Why do you so highly advocate buying investment properties in the portion of SD that has traditionally gotten hit hardest in each cycle?

[sdrealtor]

[quote=bearishgurl]More taxes at SCP … I agree, AN. But let’s presume all-cash sales in each subject sold comp.

How much $$ is the new owner of this Stonebridge property going to have to put into it in order for it to be a “true comp” to the SCP sold comp?

In other words, how much would all this cost to intall in the SB property?

…wrought-iron stair-railing and front door, italian marble, fountain w/trellis, pool, patio/deck, covered gazebo, mature landscaping, etc…

And if the SB property was upgraded to the same level as the SCP property, would it sell for as much? In other words, are the recent sold comps in SB comparable to the sold comps in SCP? Which area sells for more $$ and why?

$1,025,000 (SCP sold price) – 948,135 (SB sold price + 25 yrs MR) = $76,865.

Is this enough to make up for the difference in improvements of SCP over SB? And does the new buyer have at least this much cash “laying around” to make same or similar upgrades?

If the answers are “no” to the questions (directly above), then the SCP recent sold comp is NOT a true comp to the SB recent sold comp. It is in a different category.

Also study the recent solds of each community, the level of distress in each community and other factors such as high power lines and convenience to or lack of amenities of each community and then decide for yourself which area would fare better in the future. Of course, this is not too easy of an exercise since we don’t really know what the future will bring in this volatile economy. In that case, study past performance of each community and decide which community has fared better (from an investment standpoint) since say, 2001 (the start of the millenium boom/bust cycle).

Overall monthly payments have nothing to do with current value or potential resale value.[/quote]

One question BG. You put so much credence into how communities have fared in downturns. Why do you so highly advocate buying investment properties in the portion of SD that has traditionally gotten hit hardest in each cycle?

[bearishgurl]

[quote=ocrenter]Jim the Realtor did a post on Stonebridge recently:

http://www.bubbleinfo.com/2011/08/07/stonebridge-estates/%5B/quote%5D

Luv the car tour, ocrenter… thanks for posting :=]

[bearishgurl]

[quote=ocrenter]Jim the Realtor did a post on Stonebridge recently:

http://www.bubbleinfo.com/2011/08/07/stonebridge-estates/%5B/quote%5D

Luv the car tour, ocrenter… thanks for posting :=]

[bearishgurl]

[quote=ocrenter]Jim the Realtor did a post on Stonebridge recently:

http://www.bubbleinfo.com/2011/08/07/stonebridge-estates/%5B/quote%5D

Luv the car tour, ocrenter… thanks for posting :=]

[bearishgurl]

[quote=ocrenter]Jim the Realtor did a post on Stonebridge recently:

http://www.bubbleinfo.com/2011/08/07/stonebridge-estates/%5B/quote%5D

Luv the car tour, ocrenter… thanks for posting :=]

[bearishgurl]

[quote=ocrenter]Jim the Realtor did a post on Stonebridge recently:

http://www.bubbleinfo.com/2011/08/07/stonebridge-estates/%5B/quote%5D

Luv the car tour, ocrenter… thanks for posting :=]

[bearishgurl]

[quote=sdrealtor]One question BG. You put so much credence into how communities have fared in downturns. Why do you so highly advocate buying investment properties in the portion of SD that has traditionally gotten hit hardest in each cycle?[/quote]

I haven’t advocated buying investment properties necessarily in communities that have been “hit hardest,” just in communities where the “numbers work” for an SFR monthly cash flow (putting 20-30% down). Communities which were ALREADY lower priced PRIOR to the recent “millenium boom/bust cycle” had less distance to fall DURING the cycle. Regardless of whether the prevailing mo rent is/was $1350, $1650 or $1850, they made sense to buy then and they make sense to buy now at a particular price point.

If tenants will pay your mortgage off for you over the years, why do you CARE so much how much the property actually appreciates?

Some of these Piggs here appear to have a “payment shopping mentality” instead of really looking at the underlying value of a property and the area it sits in, as well as what the immediate area has to offer.

Also, I think some might be wrapped up in “excessive sf” when they could easily live in a third of that amount and probably couldn’t afford to furnish 4000-5000 sf :={

Which do YOU think was the better buy here, sdr?? The property in SCP or the one in SB? Or if you’re not so familiar with these areas, how about an (expert) opinion from SDR?

SDR, if you’re around, which do YOU think was the better buy?

[bearishgurl]

[quote=sdrealtor]One question BG. You put so much credence into how communities have fared in downturns. Why do you so highly advocate buying investment properties in the portion of SD that has traditionally gotten hit hardest in each cycle?[/quote]

I haven’t advocated buying investment properties necessarily in communities that have been “hit hardest,” just in communities where the “numbers work” for an SFR monthly cash flow (putting 20-30% down). Communities which were ALREADY lower priced PRIOR to the recent “millenium boom/bust cycle” had less distance to fall DURING the cycle. Regardless of whether the prevailing mo rent is/was $1350, $1650 or $1850, they made sense to buy then and they make sense to buy now at a particular price point.

If tenants will pay your mortgage off for you over the years, why do you CARE so much how much the property actually appreciates?

Some of these Piggs here appear to have a “payment shopping mentality” instead of really looking at the underlying value of a property and the area it sits in, as well as what the immediate area has to offer.

Also, I think some might be wrapped up in “excessive sf” when they could easily live in a third of that amount and probably couldn’t afford to furnish 4000-5000 sf :={

Which do YOU think was the better buy here, sdr?? The property in SCP or the one in SB? Or if you’re not so familiar with these areas, how about an (expert) opinion from SDR?

SDR, if you’re around, which do YOU think was the better buy?

[bearishgurl]

[quote=sdrealtor]One question BG. You put so much credence into how communities have fared in downturns. Why do you so highly advocate buying investment properties in the portion of SD that has traditionally gotten hit hardest in each cycle?[/quote]

I haven’t advocated buying investment properties necessarily in communities that have been “hit hardest,” just in communities where the “numbers work” for an SFR monthly cash flow (putting 20-30% down). Communities which were ALREADY lower priced PRIOR to the recent “millenium boom/bust cycle” had less distance to fall DURING the cycle. Regardless of whether the prevailing mo rent is/was $1350, $1650 or $1850, they made sense to buy then and they make sense to buy now at a particular price point.

If tenants will pay your mortgage off for you over the years, why do you CARE so much how much the property actually appreciates?

Some of these Piggs here appear to have a “payment shopping mentality” instead of really looking at the underlying value of a property and the area it sits in, as well as what the immediate area has to offer.

Also, I think some might be wrapped up in “excessive sf” when they could easily live in a third of that amount and probably couldn’t afford to furnish 4000-5000 sf :={

Which do YOU think was the better buy here, sdr?? The property in SCP or the one in SB? Or if you’re not so familiar with these areas, how about an (expert) opinion from SDR?

SDR, if you’re around, which do YOU think was the better buy?

[bearishgurl]

[quote=sdrealtor]One question BG. You put so much credence into how communities have fared in downturns. Why do you so highly advocate buying investment properties in the portion of SD that has traditionally gotten hit hardest in each cycle?[/quote]

I haven’t advocated buying investment properties necessarily in communities that have been “hit hardest,” just in communities where the “numbers work” for an SFR monthly cash flow (putting 20-30% down). Communities which were ALREADY lower priced PRIOR to the recent “millenium boom/bust cycle” had less distance to fall DURING the cycle. Regardless of whether the prevailing mo rent is/was $1350, $1650 or $1850, they made sense to buy then and they make sense to buy now at a particular price point.

If tenants will pay your mortgage off for you over the years, why do you CARE so much how much the property actually appreciates?

Some of these Piggs here appear to have a “payment shopping mentality” instead of really looking at the underlying value of a property and the area it sits in, as well as what the immediate area has to offer.

Also, I think some might be wrapped up in “excessive sf” when they could easily live in a third of that amount and probably couldn’t afford to furnish 4000-5000 sf :={

Which do YOU think was the better buy here, sdr?? The property in SCP or the one in SB? Or if you’re not so familiar with these areas, how about an (expert) opinion from SDR?

SDR, if you’re around, which do YOU think was the better buy?

[Author]

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