The asking price is reasonable low.
You may buy this property cheaper than 15 years ago. You may have to pay about $100-120K at this present time. That's right, the price will be lower than 15 years ago, even it was foreclosed for $361K this Spring. For an income property to hold, its return is good for 25% a year (NOTE: based on FHA $2,000 rent a month, even the market rent is 50% higher) which is about 7 times more than current bank CD rate.
However, you can make it much higher than that rate, at least a minimum annual rate of 100% up to infinite. How can you do that? Good question for you to figure out, right?
I live in Texas and collect all information through internet. I also found that the condo is in the top 40% good community in the city (grade 2 in 5). What a wonderful world we live in now compared to our ancestor! Even Richard Nixon has to envy us since there would be no Watergate scandal if he could enjoy the recent technology without 3 stupid guys using illegal wire tape. So, please don't say you can't do any investment in other state.
Looking forward to all the good deals coming to Los Angeles prime areas.
TheIronChef |
 2008/12/04 08:23 |
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Thanks for taking the time to answer my question. I am about to take final exam in school and will need a bit more time to organize my thoughts on your answer.
I am a little bit interested in the condo you just posted. You think it's likely to be bought with $100k? I am very likely to move to Cali next summer or fall to look for a job. I expect the real estate market to stay low for another 2 or 3 years, but it doesn't mean bargains would still come by.
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| 2008/12/04 11:26 ET reply |
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If you are lucky enough, it could be yours for less than $100K. That's better than 15 years ago (please go back to check its sale history I just added.)
I used to post some good deals in this blog/ website. But, some people love to accuse me of "getting a buyer/client." My purpose is just to use "case study" to explain the trend in California. I am retired to make fun live for myself. In deed, no intention to attract any client unless the situation is in need. Mind you that I am a lazy guy who doesn't like to work for others (please see the big difference that I love to "work with" others as a team).
But don't be in a hurry, a lot of good deals are on the way. It is so funny to see the move of real estate like the wave of stock market.
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4**1 *****, CA 90***
Bedrooms:
| 3 |
|
Bathrooms:
| 2.0 |
|
Sq ft:
| 1,655 |
|
Lot size:
| 2,178 sq ft / 0.05 acres |
2,178 sq ft / 0.05 acres |
Year built:
| 1990 |
1990 |
3BR, 2BA, 1655SF
|
|
| Assessor's ID No. |
****-1-0**-0** |
|
| Site Address |
****1 ********
**********CA 9**** |
Square Footage 1,655 （約四十五台坪） |
|
|
| Year Built / Effective Year Built |
1990 / 1990 |
|
| Bedrooms / Bathrooms |
3 / 2 |
|
| Recording Date |
0*/**/2005 |
|
| Land |
$248,322 |
|
| Improvements |
$159,181 |
|
Bank owned. Newer 3 legal townhouse on quiet street just a few blocks east of ******. Good floorplan, master fireplace, bright kitchen w/ oak cabinets, formal dining, sunny private patio. 1 minute to ******, easy access to beaches. See agent remarks. See listing website Rental comparables 當地房市租金現況
SourceAccuracyLowMedianHigh# of ComparablesMore info
| Rentometer |
Census Tract |
$3,210 |
$3,210 |
$3,210 |
48 |
Comparables Report |
| HUD FMR |
Statistical Area |
|
$2,014 |
|
Not applicable |
HUD FMR Information |
Investment Summary 一般市場投資回報率預估
This investment summary assumes a 30-year fixed loan, 20% down, 7% APR. It uses operating assumptions of 10% management fees, 9% vacancy allotment, 3% repairs. This investment summary assumes that rents increase each year by 5%. This property would need to be purchased for $400,000 in order to generate a break-even cashflow based on prevaliing market rents.
Annual Property Operating Data
Net Operating Income (NOI)
1 Year2 Year3 Year4 Year5 Year
Maximum Possible Rent
| $38,520 |
$40,523 |
$42,630 |
$44,847 |
$47,179 |
Vacancy Allowance
| ($3,467) |
($3,647) |
($3,837) |
($4,036) |
($4,246) |
Management Fees
| ($3,852) |
($4,052) |
($4,263) |
($4,485) |
($4,718) |
Tax Assessment
| ($2,460) |
($2,460) |
($2,460) |
($2,460) |
($2,460) |
Insurance Service
| ($630) |
($630) |
($630) |
($630) |
($630) |
Repairs
| ($1,156) |
($1,216) |
($1,279) |
($1,345) |
($1,415) |
|
Net Operating Income
| $26,956 |
$28,518 |
$30,162 |
$31,891 |
$33,710 |
Cashflow
1 Year2 Year3 Year4 Year5 Year
Net Operating Income
| $26,956 |
$28,518 |
$30,162 |
$31,891 |
$33,710 |
| ($13,412) |
($13,412) |
($13,412) |
($13,412) |
($13,412) |
|
Cashflow Before Taxes
| $13,543 |
$15,105 |
$16,749 |
$18,478 |
$20,297 |
1 Year2 Year3 Year4 Year5 Year
Break-even Purchase Price
| $400,000 |
Rents
| $38,520 |
$40,870 |
$43,299 |
$47,461 |
$50,330 |
Cashflow Before Taxes
| $-1,388 |
$445 |
$2,340 |
$5,586 |
$7,824 |
Cash-on-Cash Return
| -1.73% |
0.56% |
2.92% |
6.98% |
9.78% |
Related Property Transactions
We found 4 related property transactions in the last 3 years.
Transaction DateValueBuyerSellerFull or PartialMultiple APNArms LengthDocument TypeTransaction TypeREO Flag
| 2005-12-02 |
n/a |
G***********Y |
|
Full |
|
No |
Unknown |
Refinance |
N |
| 2006-12-14 |
n/a |
G***********Y |
|
Full |
|
No |
Unknown |
Refinance |
N |
| 2006-12-14 |
n/a |
G***********Y |
|
Full |
|
No |
Unknown |
Refinance |
N |
| 2008-**-** |
$361,250 |
M***** TRUST MSHEL 2007-2 |
******* LOAN SERVICE CORP |
Full |
|
No |
Trustee's Deed Upon Sale |
Resale |
B |
|
Sale History Aug 03, 1998 |
Sold |
$126,000 |
192.7%/yr |
Public Records |
| Jun 02, 1998 |
Sold |
$105,000 |
-8.5%/yr |
Public Records |
| Jul 07, 1995 |
Sold |
$136,000 |
39.1%/yr |
Public Records |
| Dec 09, 1994 |
Sold |
$112,500 |
-30.4%/yr |
Public Records |
| Jun 01, 1994 |
Sold |
$135,976 |
-- |
Public Records |
Related Listing History
MLS NameMLS IDFirst AppearedListing PriceLast VisibilityLast Status
| MRMLS |
**** |
2008-*** |
$210,000 |
Visible |
Active |
| CLAW |
***** |
2008-*** |
$210,000 |
Visible |
Active |
| MRMLS |
***** |
2008-*** |
$296,900 |
Not-visible |
Active |
| CLAW |
***** |
2008-** |
$249,000 |
Not-visible |
Active |
| CLAW |
****** |
2008-** |
$249,000 |
Not-visible |
Active |
| SOCALMLS |
******* |
2008-** |
$210,000 |
Visible |
Active |
（最後一項﹐是以二十萬購買價為計算指標）
Neighborhood Property Types
Type# in Block# in Tract# in Zipcode
| Apartments |
38 |
(14%) |
42 |
(3%) |
1040 |
(7%) |
| Condominiums |
24 |
(9%) |
36 |
(2%) |
818 |
(6%) |
| Single Family Residences |
100 |
(36%) |
1257 |
(82%) |
9086 |
(63%) |
| Duplexes |
53 |
(19%) |
77 |
(5%) |
1002 |
(7%) |
| Triplexes |
25 |
(9%) |
33 |
(2%) |
706 |
(5%) |
| Fourplexes |
15 |
(5%) |
19 |
(1%) |
426 |
(3%) |
| Miscellaneous Multifamily |
|
(0%) |
|
(0%) |
|
(0%) |
| Other |
22 |
(8%) |
59 |
(4%) |
1275 |
(9%) |
Area Occupancy
Occupancy# in Block# in Tract# in Zipcode
| Home-owner |
154 |
(56%) |
1177 |
(77%) |
10228 |
(71%) |
| Other Occupied |
123 |
(44%) |
349 |
(23%) |
4124 |
(29%) |
Area Vacancy 當地空房率
TypeAddresses in Tract# Vacant in TractAddresses in Zipcode# Vacant in Zipcode
| Residential |
2152 |
28 |
(1%) |
40653 |
373 |
(1%) |
| Commercial |
161 |
14 |
(9%) |
4415 |
255 |
(6%) |
SFR Sale and Price
Oct - Dec 2006Jan - Mar 2007Apr - Jun 2007Jul - Sep 2007Oct - Dec 2007Jan - Mar 2008Apr - Jun 2008Jul - Sep 2008
| Total Sold |
74 |
56 |
53 |
33 |
25 |
30 |
51 |
27 |
| Median Price Per Sq. Foot |
$434 |
$455 |
$509 |
$417 |
$447 |
$381 |
$336 |
$344 |
| 2 Bedroom |
| Total Sold |
16 |
16 |
10 |
12 |
5 |
6 |
6 |
9 |
| Median Price |
$472,000 |
$445,000 |
$479,000 |
$396,000 |
-- |
-- |
-- |
$295,000 |
| 3 Bedroom |
| Total Sold |
51 |
29 |
33 |
15 |
18 |
20 |
35 |
14 |
| Median Price |
$565,000 |
$660,000 |
$619,000 |
$616,250 |
$485,000 |
$495,000 |
$500,000 |
$365,000 |
| 4 Bedroom |
| Total Sold |
5 |
8 |
8 |
3 |
2 |
4 |
8 |
4 |
| Median Price |
-- |
$674,500 |
$610,000 |
-- |
-- |
-- |
$477,000 |
-- |
Condo Sale and Price
Oct - Dec 2006Jan - Mar 2007Apr - Jun 2007Jul - Sep 2007Oct - Dec 2007Jan - Mar 2008Apr - Jun 2008Jul - Sep 2008
| Total Sold |
13 |
9 |
10 |
4 |
3 |
3 |
3 |
6 |
| Median Price Per Sq. Foot |
$259 |
$301 |
$259 |
-- |
-- |
-- |
-- |
-- |
| 3 Bedroom |
| Total Sold |
11 |
8 |
6 |
2 |
2 |
2 |
3 |
6 |
| Median Price |
$445,000 |
$465,000 |
-- |
-- |
-- |
-- |
-- |
-- |
Community safety score for ******* is 6.5 out of 10.
Violent Crime Statistics 犯罪及居家安全度
| pop. |
| Category |
Yearly Statistics |
Per Person vs. County Average |
| Homicide |
9 |
same |
| Rape |
27 |
25% higher |
| Robbery |
154 |
33% lower |
| Aggravated Assault |
245 |
40% lower |
Crime Index
(Violent Crime Overall) |
12 |
33% lower |
The Crime Index for ***** is 12. That's about 30% lower than the LA County average. It measures violent crime reported, so lower is better.
School District Grade
|
學區好壞程度Elementary School District |
| Category |
API Score |
| Elementary Schools |
717 |
| Junior High/Middle Schools |
667 |
| High Schools |
836 |
| Overall |
703 |
Local schools' overall California Academic Performance Index is 666, some distance from the statewide target of 800.
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1 Comments
on The First Good Deal In Los Angeles For Poor Folks (1)
Leave a response…
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;)
;)
With current real estate downturn, a lot of things seem so funny to me.
They are so interesting enough to have me think to write a series of topic "Everything 75-95% off Zillow.com." I will first put California, Arizona or Texas sections out, to introduce those good deals. to anyone interested in these states.
My time and energy is limited that I'd like to concentrate on the above area. I may consider to expand my sections out if someone has a special interest in other area and in deed need help.
They are good deal, you may save a lot of money by buying it at a price a lot less than the current Zestimate. Certainly, it is for your reference only. Anyone reading it has to use his fully due diligence so that we don't create a client/ consultant relationship. It is free and I don't get nothing out of it and no responsibility whatever accordingly. But, in order to protect me, I will omit all the address concerned.
What do you think, folks!