The First Good Deal In Los Angeles For Poor Folks (1)

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 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. 2008/12/04 11:26 ET reply 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.

4**1 *****, CA 90*** Bedrooms: Bathrooms: Sq ft: Lot size: Year built: 3 2.0 1,655 2,178 sq ft / 0.05 acres 2,178 sq ft / 0.05 acres 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 Vacancy Allowance Management Fees Tax Assessment Insurance Service Repairs Net Operating Income

$38,520	$40,523	$42,630	$44,847	$47,179
($3,467)	($3,647)	($3,837)	($4,036)	($4,246)
($3,852)	($4,052)	($4,263)	($4,485)	($4,718)
($2,460)	($2,460)	($2,460)	($2,460)	($2,460)
($630)	($630)	($630)	($630)	($630)
($1,156)	($1,216)	($1,279)	($1,345)	($1,415)
$26,956	$28,518	$30,162	$31,891	$33,710

Cashflow

1 Year2 Year3 Year4 Year5 Year Net Operating Income Cashflow Before Taxes

$26,956	$28,518	$30,162	$31,891	$33,710
($13,412)	($13,412)	($13,412)	($13,412)	($13,412)
$13,543	$15,105	$16,749	$18,478	$20,297

1 Year2 Year3 Year4 Year5 Year Break-even Purchase Price Rents Cashflow Before Taxes Cash-on-Cash Return

$400,000
$38,520	$40,870	$43,299	$47,461	$50,330
$-1,388	$445	$2,340	$5,586	$7,824
-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.