Today I'm going to avoid talking trash* and am featuring a seller that should be applauded for their acceptance of reality and their no-holds-barred pricing strategy.
Address: 1833 E APPLETON St #8, 90802
Asking Price: $165,000
Size: 1 beds, 1 baths, 684 sq. ft.
$/Sq. Ft.: $265
HOA Fee: $90
Purchase price: $260,000
Purchase date: 1/2006
On Redfin: 273 days
Down Payment: $24,750
Monthly Payment: $1,200
Income Requirement: $41,250
Description: FOR MORE INFO SEE AGENTS COMMENTS. SPACIOUS, TURNKEY CONDO, 2ND FLOOR UNIT WITH BALCONY & PLEASENT VIEW OF PARK LIKE COURTYARD. UNIT FEATURED HARDWOOD FLOORS, & CLASSIC CERAMIC TILE, NEWER KITCHEN CABINETS, BUILT IN MICROWAVE, STOVE, DOUBLE PANE WINDOWS THROUGHOUT. EXELLENT LOCATION IN DESIRABLE ALAMITOS BEACH , JUST FEW BLOCKS FROM THE OCEAN, AND WALKING DISTANCE TO THE PARK, SHOPS, AND RESTAURANT. SELLER'S IS HIGHLY MOTIVATED, PRICED TO SELL FAST ! BANK APPROVED !!!! EASY SALE, NO MORE WAITING CLOSE IN 30 DAYS.
Monthly Mortgage Payment (not including the small tax benefit): $1200
Monthly Rent Payment: $900
If someone bought this as an investment property, it would be cashflow negative to the tune of $300 per month. However, if a buyer rented it out, the $90 HOA fee could be written off as well. Given, as an investment property there would likely be higher interest rates and down payment requirements, but by my quick calculations this almost makes sense as a purchase.
However, it's still a comp. A scary, scary comp
Although 1833 Appleton makes sense at the current price I doubt it will actually sell for $165,000. Because the bank will likely drag its feet approving the sale, the property will continue to rot while surrounding prices plummet further. And even though this starts making sense at $165,000, it us STILL overpriced and doesn't align with local incomes. For f**ks sake, it's priced a whopping 65% more than the 2003 price.