Friday, March 12, 2010

Bottoms Up

2331 East 10TH St #304, 90804
Asking Price: $129,900
Beds: 2
Baths: 2
Sq. Ft.: 750
$/Sq. Ft.: $173
Year Built: 1988
MLS#: P712939
On Redfin: 100 days
HOA: $241
Down Payment: $26,000/$5,200 FHA
Income Requirement: $37,000
Monthly Nut: $900/$1,000 FHA
Description: * * * ROSE PARK CONDO * * * This 2 bedroom, 2 bathroom condo features include: Tiled entry; living room with carpet, gas fireplace, wall gas heater, & French doors open out to balcony with water heater closet; laundry room off of living room; kitchen with tile floors, stainless steel sink, disposal, Frigidaire appliances, range, microwave/venthood combo, dishwasher, granite countertop, breakfast bar area; master off of living room with mirrored wardrobe & private full bath with granite countertops. 1 Parking space.

Sure, it's tiny. Sure, you only get one parking spot. Sure, the HOA is a little high for the area and amenities.

However, it is nicely upgraded, comes with most appliances, and has in-unit laundry.

For those of you searching for low-income housing in less desirable neighborhoods, you're certifiably nuts if you're not out there making offers right now. I know, I know, I sound just like those mongoloid housing cheerleaders who call the bottom every other week, but there is no doubt in my mind the bottom is here on the low-end.

And say I'm wrong and it drops a teeny bit further (if it falls a lot further that means the entire system collapsed and we'll be living like Viggo Mortensen in The Road by the end of the month), who gives a crap? You locked in a crazy low interest rate for 30 years and your monthly payment for a clean, tidy two-bedroom apartment is less than what you would pay in rent--and that's before factoring in the (small) tax benefit.

You're running out of excuses, champ.

The most amazing thing about this property is not its affordability, but how much value it's lost. I don't exactly how much it sold for during the bubble, but the tax basis is $337,089 and it appears the bank took it back for $347,690 ($463 per square foot!).

And they're trying to unload it for just $130,000?

Um, wow.

It's pretty amazing just how quickly and dramatically this zip code fell off a cliff. In January 2008, the price per square foot in 90804 was $388. Today?

Try $201.

And just imagine what it must have been during the peak!

The scariest part is that despite the bargain basement price, this thing still hasn't sold. Given the incredibly low barrier for ownership (low FHA down payments, income requirement in line with local median income, payment lower than rents), that's a frightening prospect.

It probably doesn't make investment sense yet (otherwise you wouldn't even be reading about this place--an investor would have snapped it up already), but if you're looking for clean, updated, cheap digs and a tax break, and aren't picky about neighborhoods, you have until April 30th to get your ass in gear.


  1. Maybe it's happened before, but this is the first time since I have been reading the blog that there was actually a post about a real estate bargain in the LBC. It's a miracle!!!

  2. QtoR, I almost don't know how to react.

  3. I know...and it's MESSING WITH YOUR MINDS.

    But hey, I call 'em as I see 'em and if I spot a good deal I'll be the first to point it out to my readers.

    Afterall, not everybody is in the market for a million-dollar home.

    Have a great weekend.

  4. I can't figure out why they wouldn't take a pic of the "french doors" leading out to the patio, and then a pic of the patio itself (guessing a pic of the view from patio is WAY out the question).

    My current rental is WAY nicer than this place in a WAY nicer area with an oldschool cheap rent... but dag this is something for a bachelor to consider!

    The monthly payment on this would be in the range of only $700 a month, but then there's the HOA of $241 to add to that. The tax deduction should take care of that and the property tax, but I'm wondering why El Bee is minimizing the tax deductions?

    I'm no expert, but from what I've heard and learned, it's definitely a considerable amount. Maybe I'm missing something??

    Oh yeah and El Bee, check THIS out:

    Unemployment in Long Beach is at a record rate, and the state is borrowing from the Fed just to pay Unemployment Insurance.

    Gee, I wonder why this is. (being sarcastic here)

  5. Mike, the only reason I downplay the tax benefit for this particular place is because it's so dang cheap--you really aren't paying much in the way of property taxes or interest.

    The less you pay in, the less you get back.

    Either way, I'm with you: This is perfect for a bachelor.

  6. Not quite yet for an investor...maybe for a bachelor. There's been much better deals a few streets over for under $100k in the last few months.
    Wait until the tax credit goes away and with it the first time buyer. Then they'll drop as only investors, for the most part,are left.

  7. That area is rife with drug dealers. who live in the rentals across the street, and two streets west, again, across the street.
    Gang members, junkies and crack addicts galore day and night walking in that area.
    Isn't there a bus stop in front of that buliding?
    In any case, if you think something is "cheap" and still not selling, dig deeper. There is always a reason.
    This will probably be picked up by someone with an FHA loan.

  8. JK, how about being more specific? A "few streets over," if it's a few streets north, puts you in a gang-infested battle zone.
    Not a good investment at almost any price.