Ivy Gate massacre

[Eugene]

Ivy Gate is a gated community at the south end of 92127 zip code. Not sure if it’s technically 4S Ranch or not. 50-60 houses, 3800 to 5500 sf, unusually large lots (up to half acre). Mostly sold out in mid to late 2006, as you can imagine, at stratospheric prices (median selling price 1.5 mil). A few properties were featured at BMIT.

Fast forward to the present:

6 houses in various states of default. One guy filed for bankruptcy, two are trying short sales, three are just quietly waiting for the inevitable. Both short sales are listed for ~$300k under the purchase price with DOM on the order of 5-6 months.

At least 3 more Ivy Gate “homeowners” are known to have been looking for renters.

I guess 4S Ranch is not immune after all.

[Navydoc]

I know someone who lives in this community, and we’ve looked at the sample homes. The people I know bought with 100% no-doc financing, and are currenty paying option 1 every month. A couple of times a week I check to see if their house is listed.

There was every bit as much Kool-Aide in this neighborhood as anywhere else, maybe more, as people with real money probably wouldn’t be interested in living in this area.

[Navydoc]

I know someone who lives in this community, and we’ve looked at the sample homes. The people I know bought with 100% no-doc financing, and are currenty paying option 1 every month. A couple of times a week I check to see if their house is listed.

There was every bit as much Kool-Aide in this neighborhood as anywhere else, maybe more, as people with real money probably wouldn’t be interested in living in this area.

[Navydoc]

I know someone who lives in this community, and we’ve looked at the sample homes. The people I know bought with 100% no-doc financing, and are currenty paying option 1 every month. A couple of times a week I check to see if their house is listed.

There was every bit as much Kool-Aide in this neighborhood as anywhere else, maybe more, as people with real money probably wouldn’t be interested in living in this area.

[Navydoc]

I know someone who lives in this community, and we’ve looked at the sample homes. The people I know bought with 100% no-doc financing, and are currenty paying option 1 every month. A couple of times a week I check to see if their house is listed.

There was every bit as much Kool-Aide in this neighborhood as anywhere else, maybe more, as people with real money probably wouldn’t be interested in living in this area.

[Navydoc]

I know someone who lives in this community, and we’ve looked at the sample homes. The people I know bought with 100% no-doc financing, and are currenty paying option 1 every month. A couple of times a week I check to see if their house is listed.

There was every bit as much Kool-Aide in this neighborhood as anywhere else, maybe more, as people with real money probably wouldn’t be interested in living in this area.

[Coronita]

dumb question..

 

So I am curious if/when prices come down in 4S such that properties actually pencils in as a possible rental (I know, not likely in this particular community and a long way to go in 4s ranc), would folks be adverse to owning a rental in 4s, given the past wildfires in san diego?

 

I know that it probably isn't worth worrying about too much. But I'm just thinking if I had a rental out there, it would suck if every so often I needed to worry about a brush fire.

 

I'm leaning more towards MM as possible rental income. (1) being that it seems like pricing is coming down faster (2) it seems more convenient into companies in sorrento valley area (3) less brush fire worries.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

dumb question..

 

So I am curious if/when prices come down in 4S such that properties actually pencils in as a possible rental (I know, not likely in this particular community and a long way to go in 4s ranc), would folks be adverse to owning a rental in 4s, given the past wildfires in san diego?

 

I know that it probably isn't worth worrying about too much. But I'm just thinking if I had a rental out there, it would suck if every so often I needed to worry about a brush fire.

 

I'm leaning more towards MM as possible rental income. (1) being that it seems like pricing is coming down faster (2) it seems more convenient into companies in sorrento valley area (3) less brush fire worries.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

dumb question..

 

So I am curious if/when prices come down in 4S such that properties actually pencils in as a possible rental (I know, not likely in this particular community and a long way to go in 4s ranc), would folks be adverse to owning a rental in 4s, given the past wildfires in san diego?

 

I know that it probably isn't worth worrying about too much. But I'm just thinking if I had a rental out there, it would suck if every so often I needed to worry about a brush fire.

 

I'm leaning more towards MM as possible rental income. (1) being that it seems like pricing is coming down faster (2) it seems more convenient into companies in sorrento valley area (3) less brush fire worries.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

dumb question..

 

So I am curious if/when prices come down in 4S such that properties actually pencils in as a possible rental (I know, not likely in this particular community and a long way to go in 4s ranc), would folks be adverse to owning a rental in 4s, given the past wildfires in san diego?

 

I know that it probably isn't worth worrying about too much. But I'm just thinking if I had a rental out there, it would suck if every so often I needed to worry about a brush fire.

 

I'm leaning more towards MM as possible rental income. (1) being that it seems like pricing is coming down faster (2) it seems more convenient into companies in sorrento valley area (3) less brush fire worries.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

dumb question..

 

So I am curious if/when prices come down in 4S such that properties actually pencils in as a possible rental (I know, not likely in this particular community and a long way to go in 4s ranc), would folks be adverse to owning a rental in 4s, given the past wildfires in san diego?

 

I know that it probably isn't worth worrying about too much. But I'm just thinking if I had a rental out there, it would suck if every so often I needed to worry about a brush fire.

 

I'm leaning more towards MM as possible rental income. (1) being that it seems like pricing is coming down faster (2) it seems more convenient into companies in sorrento valley area (3) less brush fire worries.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Raybyrnes]

This raises a second question, Can you insure you loss of income in the event of the fire. If you are using the rensts to cover a portion of the mortgage then I would think that you would not only have to insure the property but would also have to carry a policy that would insure the income for 24 months. Otherwise you would need to carry a reserve equal to 2 years rent to offset this type of risk.

[Raybyrnes]

This raises a second question, Can you insure you loss of income in the event of the fire. If you are using the rensts to cover a portion of the mortgage then I would think that you would not only have to insure the property but would also have to carry a policy that would insure the income for 24 months. Otherwise you would need to carry a reserve equal to 2 years rent to offset this type of risk.

[Raybyrnes]

This raises a second question, Can you insure you loss of income in the event of the fire. If you are using the rensts to cover a portion of the mortgage then I would think that you would not only have to insure the property but would also have to carry a policy that would insure the income for 24 months. Otherwise you would need to carry a reserve equal to 2 years rent to offset this type of risk.

[Raybyrnes]

This raises a second question, Can you insure you loss of income in the event of the fire. If you are using the rensts to cover a portion of the mortgage then I would think that you would not only have to insure the property but would also have to carry a policy that would insure the income for 24 months. Otherwise you would need to carry a reserve equal to 2 years rent to offset this type of risk.

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