This REO in Rancho Santa Margarita features plenty of good news as well as bad news. We'll share it all with you in today's post.
16 Calle Bieldo, 92688
Asking price: $449,000
Asking price/ sq ft: $282
Bank purchase price: $74,297
Purchase date: 2/11/09
Size: 4 beds, 2.5 baths, 1,591 sq ft (built in 1988)
MLS: Y901317 (32 days on Redfin)
Zillow Zestimate: $470,000
HOA dues: $55
Type: Single Family Residence
Stories: 2
Lot size: 4,220 Sq. Ft.
From listing: This is a must see!! Highly upgraded with expanded luxury master bath. Extensive use of granite, custom cabinetry, wainscotting and crown mouldings. That's the good news. The bad news is that this is an REO with missing items i.e. light fixtures, 2 toilets, dishwasher and stove. The former owner poured literally thousands into this home and with a little effort it can become a jewel again.
This property is currently accepting backup offers. The previous owner used 100% financing to buy the property for $305,000 in 2000. The problem came when the two loans they later took out - totaling $450,000 - both went into default in October 2008.
Let's look at some of the positives:
- Since it's an REO, we know the property can actually be sold.
- The listing description tells us there is "extensive use of granite, custom cabinetry, wainscotting and crown mouldings...The former owner poured literally thousands into this home..."
- The asking price was $449,000. Houses on this street were going for $530,000+ in 2004, making us believe this is a 2003 rollback. Instant equity! (Just kidding)
This is an interesting property to us - indicative of the current real estate market. Here we have a property that's well above rental parity (if we generously assume this property can rent for $2,500 per month, it should be valued by an owner-occupant at $400,000 assuming a GRM of 160) and in serious need of money-costing repairs.
If one were to simply run the numbers, it's obvious this is not an amazing deal by any stretch. Yet, the bank still apparently had no trouble finding a buyer. Looks like the knife catchers are still out there.
3 comments:
The other bad news:
It backs to Antonio pkwy. Noisy much?
Replacing those two missing drawers in the custom built-in library shelves may cost more than the dishwasher.
If someone steals the toilets, who's to say they didn't fill the soil pipes with concrete?
FreedomCM
You really think this would rent for $2500?
When 2000sq ft houses in AV and Laguna Niguel are renting for $2500? When 1500 sq ft houses in MV are having trouble finding tenants at $2100?
I think you may be just a tad optimistic on that rental pricing.
This POS is still vastly overpriced. Far from employment and hot as hell in the summer. Remember, rentals normally cost more than owning monthly because of the risk of owning and cost of maintenance. OC is still in a very precarious position. If you chopped $100K off the price, it might be pretty close, but for now, not even.
Chuck
I think I was probably a bit more than a tad optimistic...considering I looked at asking rental prices. But even with an inflated rental price, as you said, it's still way overpriced for sale as well.
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