Major loss in Bay Ho ~25%!!!!

[GoUSC]

I live in the neighborhood from this house.

3211 Fortuna Avenue
Bought in August 2005 for $625,000. Buyer financed 100% at the time.

Now on the market for $500,000 to $562,500. This represents a loss of 25% (@$500,000). WOW!

http://www.sdlookup.com/MLS-076031836-3211_Fontana_Ave_San_Diego_CA_92117

[GoUSC]

Should be 3211 Fontana. I believe the seller is in pre-foreclosure as well.

[GoUSC]

Should be 3211 Fontana. I believe the seller is in pre-foreclosure as well.

[SD Realtor]

Yep financed her to the hilt and been on the market for 2 months…

[SD Realtor]

Yep financed her to the hilt and been on the market for 2 months…

[GoUSC]

Called the broker..indeed is a short sale and the house is in foreclosure. Going to look at is on Saturday. I am thinking why not make a low ball offer provided the location is nice. Thoughts?

[GoUSC]

Called the broker..indeed is a short sale and the house is in foreclosure. Going to look at is on Saturday. I am thinking why not make a low ball offer provided the location is nice. Thoughts?

[4plexowner]

Make sure you drive through the immediate area – some of the streets off of Clairemont Dr have lots of duplexes on them and the rental feel of the neighborhood may detract from the value of any single family houses – in particular, there is one street (Apache or Cheyenne Ave?) where most of the duplexes have fenced-in front yards – very tacky IMO and not allowed in some parts of town

You know the drill about ‘if it makes sense to you and you can afford it, buy it’ so I won’t go into that – I want to look at this house’s rental value

Looking in the UT rental section I see that the highest priced 3 bdrm is $2200 (there are several around this price) and one 4 bdrm for $2300

Let’s assume we can rent the place for $2200 or $26,400 in yearly rent – first we cover our costs – $5500 for taxes – $2200 set aside for 1 month vacancy, just in case (we want to be prudent investors) – $1500 for insurance – $3500 in maintenance and misc – leaves us with $13,700 or $1,141 per month to pay the mortgage

$175K at 7% on a 30 yr fixed (remember prudence) will cost us $1164/month

That means we need to put $325K down or this property will be an alligator snapping at our heels every month

I would suggest that there are better ways to invest $325K right now but again, if you are looking for a place to live and it makes sense for you, go for it – I think Clairemont is a great location and I will be buying investment property there when it makes sense

[4plexowner]

Make sure you drive through the immediate area – some of the streets off of Clairemont Dr have lots of duplexes on them and the rental feel of the neighborhood may detract from the value of any single family houses – in particular, there is one street (Apache or Cheyenne Ave?) where most of the duplexes have fenced-in front yards – very tacky IMO and not allowed in some parts of town

You know the drill about ‘if it makes sense to you and you can afford it, buy it’ so I won’t go into that – I want to look at this house’s rental value

Looking in the UT rental section I see that the highest priced 3 bdrm is $2200 (there are several around this price) and one 4 bdrm for $2300

Let’s assume we can rent the place for $2200 or $26,400 in yearly rent – first we cover our costs – $5500 for taxes – $2200 set aside for 1 month vacancy, just in case (we want to be prudent investors) – $1500 for insurance – $3500 in maintenance and misc – leaves us with $13,700 or $1,141 per month to pay the mortgage

$175K at 7% on a 30 yr fixed (remember prudence) will cost us $1164/month

That means we need to put $325K down or this property will be an alligator snapping at our heels every month

I would suggest that there are better ways to invest $325K right now but again, if you are looking for a place to live and it makes sense for you, go for it – I think Clairemont is a great location and I will be buying investment property there when it makes sense

[sdrealtor]

Not Bay Ho. It’s in Clairemont as far as I can tell from the map.

[sdrealtor]

Not Bay Ho. It’s in Clairemont as far as I can tell from the map.

[4plexowner]

If the property had a view of the bay or even the canyon I might try to say it was in Bay Park / Bay Ho (if you can see the bay what difference does it make?) – without a view I would be low key and say ‘Clairemont’

From what I can tell, this property is sitting on the inside corner lot so it backs up to the house (duplex?) on the street behind

When you drive by see if there are any 2nd story additions that might get a view of the bay

[4plexowner]

If the property had a view of the bay or even the canyon I might try to say it was in Bay Park / Bay Ho (if you can see the bay what difference does it make?) – without a view I would be low key and say ‘Clairemont’

From what I can tell, this property is sitting on the inside corner lot so it backs up to the house (duplex?) on the street behind

When you drive by see if there are any 2nd story additions that might get a view of the bay

[GoUSC]

The borders of Clairemont and Bay Ho aren’t really set. So call it Clairemont then. I took a look at the aerial and here it is.

Live Search Maps
http://maps.live.com/default.aspx?v=2&cp=pfzy6j56zzdc&style=o&lvl=1&tilt=-90&dir=0&alt=-1000&scene=6218663&encType=1

It’s the house just to the left of the boat on the corner. I plug the house into my handy dandy NPV calculator that I created to decide whether to buy a house or not and using a yearly appreciation of 3% it makes sense to buy this house at $450k and hold for 10 years. Make no doubt, if I make an offer it will be a truly low ball offer. I don’t care if they accept or not. Making a house purchase is 100% a financial decision to me. Gotta make dollars & sense.

[GoUSC]

The borders of Clairemont and Bay Ho aren’t really set. So call it Clairemont then. I took a look at the aerial and here it is.

Live Search Maps
http://maps.live.com/default.aspx?v=2&cp=pfzy6j56zzdc&style=o&lvl=1&tilt=-90&dir=0&alt=-1000&scene=6218663&encType=1

It’s the house just to the left of the boat on the corner. I plug the house into my handy dandy NPV calculator that I created to decide whether to buy a house or not and using a yearly appreciation of 3% it makes sense to buy this house at $450k and hold for 10 years. Make no doubt, if I make an offer it will be a truly low ball offer. I don’t care if they accept or not. Making a house purchase is 100% a financial decision to me. Gotta make dollars & sense.

[Author]

Posts