One-upmanship in RSM

HAPPY FOURTH OF JULY!

We previously posted back in March about this rollback condo in RSM. That property is still on the market with a notice of default and notice of trustee sale to its credit, but now it's got some serious competition.

Presenting another 2002 rollback:

108 Flor De Sol #72, RSM, 92688
Asking price: $169,900
Asking price/ sq ft: $206
Income requirement: $42,475
Purchase price: $230,000
Purchase date: 11/13/03
Size: 2 beds, 2 baths, 825 sq ft (built in 1986)
MLS: S537514 (11 days on Redfin)
Zillow Zestimate: $224,000
HOA dues: $250
Type: Condominium
Style: French
Stories: 1 Level
From listing: lower end unitwith 2 bedrooms and 2 baths,inside laundry,walking distance to community lake,shopping center, and more

This property is not showing up in ForeclosureRadar as a preforeclosure, but we assume it is a short sale. It was purchased in 2003 using 100% (85-15) financing.

Judging by the list of nearby properties for rent, we expect you would be able to find a tenant willing to pay about $1,500 a month to live here. That means this property would be worth around $240,000 to an owner-occupant who wanted to buy and achieve rental parity. To an investor, this condo is likely worth about $150,000-$165,000.

Assuming the property can be sold for the full asking price, it would mean a decline of $60,100 off the 2003 price and a depreciation of $2,600 from the 2002 price, not including any sales costs. You also may be interested to know properties like this in the same complex were selling for a bit more than $350,000 in 2005. This one is more than 50% off the neighborhood peak.

A decline like this is not unique to the complex - it's happening to properties all around RSM. We've also noticed more anecdotal examples of 2003 rollbacks in areas like Laguna Niguel, Aliso Viejo and Mission Viejo. Larger properties are coming into the mix as well.

You are now excused to attend to your patriotic duties: