June 3, 2011

Further proof real estate in the Valley is bouncing back! Check out this appreciation!

$169,900

Beds: 1
Baths: 1
Sq. Ft.: 650
$/Sq. Ft.: $261
Lot Size: 2,500 Sq. Ft.
Property Type: Detached Single Family
Style: Cabin
Stories: 1
Year Built: 1951
Community: East of U.S. 101
County: San Mateo
MLS#: 81103573
Source: MLSListings
Status: Active

On Redfin: 113 days
New tile floor, double-pane windows, new doors, security gate. Home needs to be finished inside with kitchen cabinets, etc. Seller is willing to credit $5000 for finishing projects he started.

Does this look familiar? It should!

August 4, 2008

$130,000 house in Silicon Valley. Not a mistake.

2269 ADDISON Ave East Palo Alto, CA 94303

Check it out! 30% appreciation since 2008! How much has your 401k appreciated since August 2008? How much interest have you earned on all that cash you have sitting in the bank since 2008? That’s right… only enough to buy a forever stamp from the post office.

Sure you could argue that I should deduct the costs of upgrades and taxes – but that’s what an out of touch, ivory tower elitist would say. Common sense says that Profit on a house = Sales Price – Purchase Price. Duh!

Again, clearly it’s a great time to be a real estate speculator in the Valley. Dump your LinkedIn shares and start buying up East Palo Alto properties today!

Comments (10) -- Posted by: burbed @ 5:50 am

10 Responses to “Further proof real estate in the Valley is bouncing back! Check out this appreciation!”

  1. SEA Says:

    It’s already gone up another $10k!

  2. sfbubblebuyer Says:

    It’ll be 189,900 before too long, and then the lure of the ’8′ will be too strong to resist for the millions of rich chinese buying property in the bay area and you will have lost your chance to buy into the REAL EPA! Hurry! BUY NOW!

  3. madhaus Says:

    Wow, we’re really doing it up in East Palo Alto! Another little green house that will surely double faster than you can say “Instant Equity.”

    Oh man, this is one nasty flip attempt. The flipper bought it for $103K ($103K!!!) which was not too far off from the 1994 price! Tried to flip it immediately for an unknown amount (Zillow isn’t showing any of those listings) almost immediately but gave up in a month. Must have been working on those “unfinished projects” that you get $5000 “credit” when you buy the place. $179K was the original 2011 listing price, lowered to $169K after a month, and with no offers, raised back 3 months.

    Wonder how many unfinished projects await the lucky buyer of Uncle Flip’s Cabin.

  4. The Gilroy Alex Says:

    #2 they need to stop at $188,888.88 on the way, that’ll do it.

    Honestly, what Chinese person would want a tiny box in a war zone? No room for a family, Lexi will just get vandalized or stolen. This house makes no sense for anyone who isn’t running a ‘crack in the box’ drug operation or a war vet who’s nostalgic for those good ol’ times in Falluja.

  5. JuJu Says:

    Chinese person may not want it, but Mexican person or black person may be OK with it.

  6. SEA Says:

    Who is the targeted buyer?

    For someone to be attracted to a “$5,000 credit” such buyer needs to roll the $5,000 into a loan. What lender is going to loan money on this property when there’s not even a kitchen?

    Cash buyers simply don’t care about rebates–they’d rather just lower the price $5,000.

    “Financial Information
    * All Cash or Conventional”

    I’ve learned from the $8,000 tax credit, and I can tell you how to make this deal work: Owner financing.

    Simply have someone, anyone, sign a note for $188,888.88 (overbidding & 8s are likely) and rebate the buyer $5,000. In other words the buyer comes with a pen and leaves with $5,000 and a loan for $188,888.88. The seller comes with title to the property, and leaves with a mortgage backed loan. Sure the risk adjusted present value of the loan is probably $88,888, or less, but I’m sure everyone will be happy the day the deal is done, overbidding and all.

  7. sfbubblebuyer Says:

    Unless he paid cash for the flip, owner financing is a no-go.

  8. nomadic Says:

    30% appreciation since 2008? Too bad 30% of nothing is nothing, however in this case I think the seller is smoking dope. $70k-80k for a new exterior paint job and some demolition? Sheesh, he could at least toss in some light bulbs and Drano.

  9. SEA Says:

    #7- There are plenty of sellers who will hold paper on a sale with an existing mortgage, especially when selling for positive cash flow, generally from a higher interest rate or selling for more than what’s owed, often both. You know, take what would otherwise be an underwater property and sell it for a profit, even if little cash will ever be paid.

    Again we are talking about a buyer who is attracted to that $5,000 in instant equity…

    #8-

    “Too bad 30% of nothing is nothing”

    And 30% of ‘not a lot of money’ is definitely ‘not a lot of money.’ Not just an extra 30%, in this case 175% of ‘not a lot of money’ remains the same.

  10. Mole Man Says:

    The American Dream, now with windows!


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