Monday, August 25, 2008

Flippin' Ain't Easy: UPDATE II

The last time we profiled this property, we noted a massive price reduction from $499,000 to $399,000. A call of desperation that went unreturned.

But now the house has been re-listed with a new description, a sales-killing disclosure, fewer pictures, and a price tag that must make the few remaining true believers out there shudder in their boots.

Address: 514 Temple Ave, 90814
New Asking Price: $309,900
New Down Payment: $61,980
New Monthly Payment: $2,100
New Income Requirement: $77,475
Year Built: 1923
Size: 1 bed, 2 baths, 1240 sq. ft.
$/Sq. Ft.: $250 (!)
Purchase price: $520,000
Purchase date: 9/2005
MLS#: P653081
On Redfin: 2 days
Fantastic Value On This Charming Spanish '1 Bedroom + Den' House. Den Could Easily Be Converted Back In To A Master Suite with Fireplace, Master Bath and Walk In Closet. Priced For A Quick Sale!!! Spacious Living Room with Ceramic Tiles, Upgraded Open & Bright Kitchen with Granite Counters, Wood Cabinets, New Plumbing Fixtures, Remodeled Bathrooms With Granite Counters, French Doors, Recessed Lighting, and Detached Garage With Long Driveway For Extra Parking. Submit!!!!

It appears as if the "sale" on July 23 for $420,000 was actually a return to the bank. Boy, who could have predicted that? Um, well, me, actually.

In April I wrote:

The former residents got in over their heads financially and got the hell out of dodge. And judging by their hilarious pricing strategy and lazy-ass photos, I don’t think they’re the types to make much effort to avoid foreclosure.

This new asking price of $309,900 represents a nearly 45% scalping from the asking price of $562,599 just six months ago. Can you say capitulation?

The first thing I notice about the new listing is that the bank only included one measly photo. And all that photo shows is the still-unimproved front of the house and their "foreclosure lawn." It's a damn shame the bank didn't maintain that lawn. I think it was one of the best features of this dump:

And if you recall, in July I said:

At $300,000, I'd mosey on down for a look-see. But until we're in that pricing neighborhood, there's no way I'm moving to this neighborhood.

But that's before I noticed the new, previously-undisclosed information that this house is in fact only a 1-bedroom.





And this gem made me laugh: "Den Could Easily Be Converted Back In To A Master Suite with Fireplace, Master Bath and Walk In Closet."

Yeah, sounds like a blast! Just what I wanted to do after plunking down $300,000! I hope they didn't knock down any walls or add those awful double doors. Either way, good luck with that.

Now that this information has been added to the listing description, there is absolutely no way I'd consider this house. I mean, who wants to deal with that? If this were any other place, it might not be a big deal, but given the lack of detail in the uncompleted flip and the fact that these speculative overpayers were clearly uninterested in ever living have to wonder about the craftsmanship.

And even though it's priced at an appealing $250 per square foot, I still think it will have trouble finding a buyer. Location, age, no yard, only 1 bedroom, needs's possible--but not likely--that the bank will find a buyer even at this price.

I guess the real question is, now that detached Long Beach houses with bathroom and kitchen upgrades have hit $250 per square, how nervous do you suppose nearby sellers and distressed loanowners are?


  1. Is this little place in Belmont Shores?

  2. This lil' yardless buddy is in the Rose Park South neighborhood.

    I prefer Bluff Heights personally, but that's just me.

  3. It's also on Temple, which is not a small street. Pretty good amount of traffic.

  4. eckalectic,

    I agree. A lot of traffic in that area of Temple. Sitting right on Temple will keep many people far away from this house.

    I'm personally more interested in buying a detached house than a condo, but regardless of how low this price goes, I don't think this particular one would make a good investment.

    You can replant grass, you can repaint the exterior, you can reconvert the den into a bedroom, you can finish the interior detailing...but what you can't do is move the house to a better location.

  5. You could put in a nice 3 foot wide lap pool in the back yard!

    Basically a nice, large 1+d apartment with good parking. But if it doesn't need too much work, it starts becoming a good buy compared to rent at what? 225k?