Mira Mesa house went into pending, should I close?

[pokepud3]

So guys, what do you think of this house:
http://www.redfin.com/CA/San-Diego/8624-Bennington-St-92126/home/4563229

I had a bunch of offers on houses and this seems like a good deal, but looking at this for a family member not me.

Anyone know about the surrounding area, from comps it looks fine.

[an]

This might be a cliche but it’s worth what someone is willing to pay for it. If you’re not willing to pay listing and no one pick it up at listing, then it’s not worth $300k. I have no idea if it’s worth $280k. I don’t think anyone can tell you that without lying.

What I do know though, is that at listing price, assuming you put 20% down and get a 30 year fixed with 0 points, we’re talking monthly P+I of ~$1100. Tax should be about $270/month and insurance <$100/month. So, we're talking about PITI of $1500/month. Comparable rent is probably around $1700/month. This is before any tax deduction you might get. So, as a primary resident, it sounds like a decent deal to me. The area is Ok. Not the best in MM, but that's also reflective of the price.

[sdrealtor]

Havent seen the house, location or immediate neighborhood but looking at comps (South of MM and between Camino Ruiz and Blk Mtn) there have only been 2 closed sales under $300K in the last 90 days. One at $295 and $296. There are 2 other pendings under 300k but one doesnt have a 2 car garage. There are 3 contingent short sales under 300K (one looks like a disaster and other 2 lack 2 garage). The lowest active listing is 350K.

Only you can decide if the house is right for you. if you close you will most likely be the new low comp for the area.

[briansd1]

Looks like this guy did good in 2011 for a 1600sf house.

http://www.redfin.com/CA/San-Diego/8817-Stanwell-St-92126/home/4794894

[an]

[quote=briansd1]Looks like this guy did good in 2011 for a 1600sf house.

http://www.redfin.com/CA/San-Diego/8817-Stanwell-St-92126/home/4794894%5B/quote%5D
It says major repairs needed and not livable.

[sdrealtor]

It was also a short sale that took 18 months to complete. It was sold for all cash probably out of necessity. Thats not something the typical buyer can pull off and is not reflective of an open market transaction.

[EmilyHicks]

I think it is a decent deal. Almost 90% of houses under $330,000 in MM are in Contigent.

[ocrenter]

Almost $200/sqft. Not bad. So you are the pending buyer? Yes, I would close.

[an]

[quote=ocrenter]Almost $200/sqft. Not bad. So you are the pending buyer? Yes, I would close.[/quote]
There are plenty of houses in MM that are much closer to $200/sqft than this one (those tend to be in better areas too). There are plenty at <$200/sqft in similar areas. Those houses tend to be bigger though. Here are some examples: http://www.sdlookup.com/MLS-100053982-8921_Centaurus_Way_San_Diego_CA_92126 closed at $156/sq-ft.

http://www.sdlookup.com/MLS-100066502-11016_Delphinus_Way_San_Diego_CA_92126 closed at $121/sq-ft

http://www.sdlookup.com/MLS-110066524-8008_Westbury_Ave_San_Diego_CA_92126 closed at $169/sq-ft

[sdrealtor]

I concur. As long as you are happy with the house and location I would close. I dont see downside there.

[pokepud3]

The issue here is quite simply I’m looking for rent income not appreciation. Rent for this house in this area is actually 2000/m or so. The market is still in decline so it’s a hard call. I’m looking for something which with 60k down will net me 500/m in cash flow.

[Wah-Wah]

I don’t understand. $500 cash flow a month and you’re worried about declining home price? How long do you plan to hold the property? 5yr? 10yrs? How much farther do you expect home price would fall? 10%? 30%? 50%?

[an]

[quote=pokepud3]The issue here is quite simply I’m looking for rent income not appreciation. Rent for this house in this area is actually 2000/m or so. The market is still in decline so it’s a hard call. I’m looking for something which with 60k down will net me 500/m in cash flow.[/quote]
I’m quite surprised how much rent has gone up on these small 3/2 and 4/2 houses. Rent have been holding steady for the bigger 4/3 and 5/3 in better area ($2400ish). These smaller houses used to go for $1700ish only 3-4 years ago. However, $2k seems still high for a 3/2. Even if you get $2k rent for it, we’re looking at PITI of ~$1600. So, realistically, it’s probably $400/month profit. That’s not considering of things break (which for old houses, it’s likely).

[ocrenter]

[quote=AN][quote=ocrenter]Almost $200/sqft. Not bad. So you are the pending buyer? Yes, I would close.[/quote]
There are plenty of houses in MM that are much closer to $200/sqft than this one (those tend to be in better areas too). There are plenty at <$200/sqft in similar areas. Those houses tend to be bigger though. Here are some examples: http://www.sdlookup.com/MLS-100053982-8921_Centaurus_Way_San_Diego_CA_92126 closed at $156/sq-ft.

http://www.sdlookup.com/MLS-100066502-11016_Delphinus_Way_San_Diego_CA_92126 closed at $121/sq-ft

http://www.sdlookup.com/MLS-110066524-8008_Westbury_Ave_San_Diego_CA_92126 closed at $169/sq-ft[/quote]

2 of the 3 examples were "handyman" special or needs lots of "TLC." judging by the 3 pics from the Redfin link it didn't seem like the op property is in that category. Is it?

[sdrealtor]

pokepud
If you arent going to buy it please private message me before cancelling. I have an all cash buyer who would likely jump on it in a second for his relatives to live there. If he buys it, dinner would be on me at the restaurant of your choosing.

I am completely serious

[Author]

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