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 |
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4**1 *****, CA 90***
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| 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
| 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
| $26,956 | $28,518 | $30,162 | $31,891 | $33,710 |
| ($13,412) | ($13,412) | ($13,412) | ($13,412) | ($13,412) |
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| $13,543 | $15,105 | $16,749 | $18,478 | $20,297 |
| $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.
| 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
| 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
| 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
| Home-owner | 154 | (56%) | 1177 | (77%) | 10228 | (71%) |
| Other Occupied | 123 | (44%) | 349 | (23%) | 4124 | (29%) |
Area Vacancy 當地空房率
| Residential | 2152 | 28 | (1%) | 40653 | 373 | (1%) |
| Commercial | 161 | 14 | (9%) | 4415 | 255 | (6%) |
SFR Sale and Price
| 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
| 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.
| 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.
 2008/12/01 10:24 |
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In your old post you have said: |
**** **** ****
Dear Ironchef:
Very good question? Probably no one can give you an answer, except the God. Because there is no right or wrong answer to a human wisdom or limited knowledge. To me, it may depend on the situation faced and the knowledge of "Nature Law."
If we want to answer the question, there are at least some precedent questions have to be defined and clarified. First question shall be what "democracy" means. Then, the next, what are the purposes for a democracy? What make it better than a dictatorship or other systems? The third, how can we better set up a system to reach the purposes we expect? Then, the last but not the least important, is a "direct" democracy such as an American "referendum" fits in the standards of democracy? Or can it be a better means than a "delegated" democracy to truly dig out or better serve the general interests of the public?
Our ancestors have experiment to all kinds of democracy. From Greek Republic, Roman Republic down, we have too many democracy. Some are a democracy in name, but a mob rule in essence. Is the form of a system can be more democratic? American Presidential and federal system a good one, or British Cabinet and unity better?
There are so many different standards or formations set by different political entities at the different points of history. Say, if we believe a democracy is expected to explore people's will or screen out the best or intelligent leaders for the organization, the rule is clearly set on "academic ability." But, even a scholar as smart as Adam Smith is NOT qualified to be a electorate at his times, can we say the British was not a democracy? Can anyone votes if he reaches his 18 of age? Is it fair or better to treat a Ph.D., as an illiterate if we stand up for the notion of "one person, one vote; one vote, one value?" It is safe for me to say it is judged by the ideas, concepts, feelings, perspective or value system the people has.
For now, I have observed enough the drawbacks of California "referendum" system. It is safe for me to say it is a big failure, if not a disaster, to meet almost all and every standards as a democracy. It made California step down from the top leading "golden state" into an inferior "debt-broken state" in 30 years, all the politicians are unable to collectively make an in-time budget, let alone to balance it and its efficiency of economy or an elite teamwork as a political economy. The heads of the California state, the Governors, are just like a political powerless dwarf who has no sufficient executive power to touch or use 80% of the state tax revenue (already decided by so many so-called propositions) to implement his platforms, a promise to his constituency. It is NOT a good experiment to fulfill the Democracy Dream, if we have one in California.
So many questions need to be answered. To me, I will say all the constitutional individual rights shall be better decided by a judge, not by a vote. However, the boundary limits sometimes can be very blurred if we look at the interaction of theory and practice of civilization.
C.A.R. REPORTS SALES UP 117.1 PERCENT; MEDIAN PRICE FELL 39.9 PERCENT
Home sales increased 117.1 percent in October in California compared with the same period a year ago, while the median price of an existing home fell 39.9 percent, C.A.R. reported yesterday.
"Statewide sales increased significantly in October to 552,750 homes on an annualized basis, the highest sales level since late 2005," said C.A.R. President James Liptak. "The record gain stemmed primarily from extremely large increases in regions with a high concentration of distressed sales.
"Most October sales likely opened escrow prior to the beginning of the ongoing freeze in the financial markets.We won't have a clear picture of the full impact of the fallout until November and December sales are reported," Liptak added.
"The year-to-year decline in the statewide median home price was smaller in October than the previous month for the first time in 11 months," said C.A.R Vice President and Chief Economist Leslie Appleton-Young. "However, there is still no conclusive indication that prices have begun to stabilize."
****
A perfect example for the saying: "figures don't lie; people fig."
How can the sales up 117% and the price down 40% at the same period? It depends on at least one very different approach: how you collect the data. You can factor a distressed sale, such as NOT at the court steps, into a "sale" and treat it as normal. Then, you have the sales volume increased or doubled.
With different planet, who can argue with that? Very clearly, it is against the first principle of economics, isn't it?
Well, that's perfect ethical "honesty" of politicians explained. Yes, we can't treat their speech as a lie as someone said "an oral sex is not a sex." they are always perfectly honest, even they knowingly choose to use the tactics called "septic focus" to "deceive." So many cheerleaders orchestrated a show to their interest nowadays.
It is really up to you to be smart with your own discipline or to be dumb with a herd mentality, isn't it? I have no say about your action, but, sorry to say, it is "your money" as Mr. Anderson, Channel 9 of Los Angeles, uses to end his program.
*** ***
Dow drops nearly 680 on consumer spending worries (AP)
AP - The reality that the nation is indeed in recession and that the downturn may well be prolonged sent Wall Street plunging Monday, hurtling the Dow Jones industrials down nearly 700 points and wiping out more than half of last week's big gains. All the major indicators fell more than 7 percent, with the Standard & Poor's 500 index down nearly 9 percent.
Dow Index tumbled 679.9 points today, December 1, 2008.
Is it a surprise to you? No, it is not for me. Because I read some great articles, I know there is no way for Paulson or Gaithner doing the right way to cure the root cause.
One great article of them is encolsed here for your reference: U.S. consumer confidence plunges on financial crisis5:57 AM ET, Oct 28, 2008. If you read it and still act as GWB's boys like Paulson, blame yourself.
Supply, supply, supply, sounds we have a planned economy as those communists' did and failed. Yes, Paulson's "Supply" sounds like "surprise" to me, at least. I am just wondering where the demand goes?
Are we idiots? To those politicians who are good in solving a problem by creating other more serious problems, maybe.
Foreclosures, delinquencies skyrocketing among 'prime' borrowers
By E. Scott Reckard
November 24, 2008
Nationwide, 3.07% of prime mortgages were in foreclosure or at least 60 days late in the second quarter of this year, easily topping the previous record of 1.97% set in 1985.
Home prices keep plunging; L.A. sees some of the sharpest declines
By Peter Y. Hong
November 26, 2008
November 26, 2008
**** ****
Scott reported a story using Judy Jones' home in Murrieta as example to describe the general situation in the downturn of real estate. Very impressive, even it is so sad.
One thing makes me very upset, even I shouldn't since I know it is a cruel reality. Jones figures she owes about $100,000 more on the mortgages than her home's current value. She notified Bank of America Corp.'s Countrywide unit, the approach the lender urges troubled borrowers to take. No surprise to a seasoned real estate investor, she was told so long as she was current on payments, there is no way for asking help. So she intentionally missed an Oct. 15 deadline, then called Countrywide again and asked for help.
Why we have a system that awards those who defaulted (maybe with their maliciousness); while it declines to give a hand to those who act honestly and responsibly to keep making their payments, even it is so obvious the later are trying to stay afloat before drown? If the situation is so clear, what are the reasons for us to wait until the last minute it is almost no cure? Is it fair to treat a decent person who is known in trouble by asking him to be a "bad" boy before asking a help? Ridiculous!
Today, I am so busy in collecting foreclosure info in a particular area of California. One year ago, there is just almost no distressed property in this upper middle class neighborhood of Los Angeles County. Simply it is not the target area of "subprime" loan. I advised my client to wait for 8 months since I am expecting the second wave of "Option" or "Alt-A" loan to hit California, that is much much bigger than the subprime.
With the unemployment rate up to 8%, making California the third highest in the nation. The finding of my study is no surprise to my anticipation, but still it is very amazingly incredible. The distressed properties in that area increase roughly 7-8 times more than a year ago. That figures include those under NOD and NOT. It is difficult to precisely quantify the numbers (since sources are using different methods or sometimes do double counting).
Just out of my perception, it is about 30 or more NOT (notice of trustee sale) filings in September-October 2008; and in my memory, it is only about 3 filings a year ago. Almost 10 times more if we just factor in NOT only. Put it the other way, The numbers of NOT have a big surge in these two (most recent) months alone, more than the aggregate of the previous 8 months. (NOTE: Sorry, I didn't bother myself to study the NOD numbers.)
In my previous article Dealing With a Shark, You Are Out of Luck! , I mentioned a suspicious "pocket listing" (coming up on MLS for just one day.) The NOT against the house was filed in on December 27, 2007 (the opening bid is $458,059.) Two weeks ago, it was finally put on the market and listed for $284,000 (sold in one day). Clearly, the price dropped a lot. Some guys are so happy to jump on it, grasp it and thank their good friendly agent for the extra valuable help, now. However, is it really a good deal? We will find out in 8 months.
Other things being equal, it may be safe for me to assume all recent distressed properties come on the market at the same speed and processing (it is very possible wrong), then in mid-2009, we will see 10 times REO listings on the market and the pressure to sell them will be much greater. If it is the case, buyers will be able to pick up a real bargain if they can wait.
The L. A. Times reporter Scott Reckard seems to conclude that "The only practical help in sight is to get as many of these potential foreclosures modified as possible, so they come off the market." Gee, said easily than done.
How can we do it with the shrinking working forces due to the current popular policy to freeze employment in financial institutions? It is almost an impossible mission, right?
Wrong, I will say it is not the right way to do it, let alone the only way. But what I say or think doesn't mean anything to Paulson or Gaithner.
Regulators shut down three banks
SAN FRANCISCO (MarketWatch) -- In the biggest number of bank seizures yet on a single day, the Federal Deposit Insurance Corp. and state regulators have shut down two banks in Southern California and one in Georgia.The FDIC said late Friday that U.S. Bank based in Minneapolis, has acquired the banking operations, including all the deposits, of Downey Savings and Loan Association, F.A., Newport Beach, Calif., and PFF Bank & Trust, Pomona, Calif.
**** **** ****
Finally come out a good news. Good for California nature course of real estate market; and good for FDIC to make money on this arrangement since all the deposits are purchased by paying a premium to FDIC.
Compared to Obama's possible pick Geithner for Secretary of Treasury and FDIC chairwoman Bair's modification of loan, this is truly a good news to California real estate. U.S. Bank will purchase virtually all their assets, not only the deposits. Unlike the Indymac's case, it will be in a good position to deal with those nonperforming assets head on. I believe U.S Bank is not a bureacrat who doesn't care its REO sales and can tolerate the REO pile up on the book as FDIC.
Probably, US Bank is the best equipped with excellent REO working forces. From its past marketing, it is expected to do more aggressive and positive management to Downey's inventory than FDIC has done to Indymac bank.
Expect a big REO listing inflow into your California market very soon since Downey has quite big portion of California REOs (about assets of $12 billion, 1/3 of Indymac holdings). There are some US BANK REO coming up on the market in 20 days after it officially became its REO. That fact maybe makes the US Bank the only smart and realistic financial institution with that fastest efficiency.
So tell your investors the new development; and prepare themselves to take out those cash under mattress if they don't have much patient and want to act in 2-3 months. Certainly, be ready to be busy in making money, my folks in California.
As Ronald Reagon forgot, I don't remember anything. Did I work there in that little white cloudy house? Are you sure that was ME up there? How come I am down here? That's definitely not me!
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