Monday, February 1, 2010

Bank-Owned Bargain

Address: 1080 TEMPLE Ave #102, CA 90804
Asking Price: $104,900
Beds: 2
Baths: 2
Sq. Ft.: 710
$/Sq. Ft.: $148
Year Built: 1986
MLS#: S583753
On Redfin: 185 days
HOA: $296
Down Payment: $4,000 (FHA)
Income Requirement: $37,000 (3.5 x income)
Monthly Nut: $900
Description: Great 2/2 condo with updated kitchen counters and appliances, newer bathroom counters and fixtures, laundry hook ups, wood and tile flooring, and balcony.

Anybody still think the bottom isn't here on the low end? This tidy two-bedroom is only asking $148 per square foot. We haven't seen these prices since the 1990s.

And for such a little place, it's nicely upgraded.

The fact is, the bank (read: the taxpaying public) is going to lose its ass on this one. The lender took it back at auction for $369,000 in 2008 and, as is typical with lenders during this horrific housing implosion, took its sweet ass time getting it back on the market. Nine months sitting off the market, to be exact.

Anybody still think Shadow Inventory doesn't exist?

Anyhow, in July 2009, the lender finally got around to adding it to the MLS with an asking price of $193,900.

I guess that was wildly optimistic because five price reductions and 186 days later and we still don't have a sale.


I don't care what you say about the neighborhood--two garage spots, granite sinks and countertops, and tile and flooring upgrades for only a hundred grand? That's a smoking deal.

Or is it?

Because the HOA is an astounding $296. Yikes! That's just a few hundred bucks shy of the monthly Principal, Interest, and Tax payment!

So what exactly do you get for that kind of coin?

Here's a comprehensive list:


So, uh, yeah...nada. No pool, no gym, no nothin'.

But a $900 monthly nut (which is closer to $800 if you put down 20%) still seems to make sense for a rental property.

On a final note, how bummed is this guy is to have bank-owned competition undercutting him by six-figures?

Note: I'll be in Planes, Trains and Automobiles on the east coast and in the mid-west all week, so probably not a whole lot of posting. I hope you had a great weekend y'all!


  1. I'd be curious to see more pics, because fitting TWO beds and baths in 700 square feet, seems like quite a feat.

    And yeah, the HOA is sometimes the killer.

    I remember I was focusing on a condo downtown, in one of the older historic buildings (can't remember the name), and there was a unit at an unbelievable price, which was simply to die for.

    Unfortunately, the HOA was to die for as well.

    The price of the unit was $180,000, and the HOA was $415.

    Upon doing some research, I found that much bigger and more expensive units, had much lesser HOA fines.

    Somehow, this place incorporated a system where certain folks were paying unfair shares of the HOA burden.

    I never could find out how they justified it for the record, but I certainly wasn't buying in.

    Oh, and did I mention that the $415 didn't even include ONE parking space?!?!

    Yep, that means that you would have had to spend EXTRA, to park in a nearby OUTDOOR lot.

    Sorry, but I really don't want to park my Acura outside, a couple blocks away, for an extra $75 bucks a month.

  2. HOA's are the devil.

    Of course I had a great time last week. I spent Sun - Tue in San Antonio (work), and Fri - Sun in Dallas (fun).

    Enjoy your travels.

  3. If you look at the photo of the kitchen closely, you'll see a light reflection on the wall that looks suspiciously like Satan eating a banana....I'm just sayin'...You get what you pay for, consider the cost folks.

  4. It's on Temple, lol. 20 years ago it was an apartment that rented for $300 a month. Still overpriced. No thanks.

  5. HOA fees are the next bubble to crash. There is no reason in hell to pay $396 a month when there is no pool, etc. It's just a way for corporations to pull the wool over people- and those days are OVER.

  6. That dinky condo is no bargain. From the cheap looking motel-syle exterior to the exceedingly tiny size - not to mention being subject to HOA - I am stunned anyone thinks this is some sort of 'deal.'

  7. There's a very good reason to pay $400 a month to the HOA, if like where I live in Alameda CA they skimped on construction and are now replacing the siding and roofing of the entire complex. I expect we'll see 3 bedroom homes two or three times that size for six figures before this is done.