We’re continuing our DEALS DEALS DEALS all week long!  As we work our way further and further from our usual comfort zone, we’ll be visiting the entire Bay Area, or at least every county. 

Today we stop off at the one with a serious diversity shortage.  Yes, we’re talking Marin County, where diversity means there’s a redhead in your kid’s class.  And we’ve found you the absolute cheapest house in Marin.

57 Ocean View Ave
Dillon Beach, CA 94929
$275,000

Price 
2
Beds 
1
Baths  680 Sq. Ft.
$404 / Sq. Ft.
Built: 1927  Lot Size: 1,830 Sq. Ft.  On Redfin: 351 days Status: Active
Property Type
Residential, Detached, Single Family
Stories
1
County
Marin
Style
Cottage
Community
Dillon Beach
MLS#
21131349

One level, no stairs.

Four pictures, no trash.

1,830 square foot lot. Wow. When someone said they weren’t making any more land, guess whoever owned this property said, “Nuh uh! I’m going to build a bunch of tiny shacks and sell them on 1/9 acre lots and I’ll be rich, rich!”

Now if you want to be rich, rich as well, you had better start buying up property in Marin now.  Because right now certain neighborhoods in San Francisco are ultra-hot with all those well-paid high-tech engineers and social media purveyors and game-engine optimizers.  Now what do you think is going to happen when these people get married and have kids?

Well, nothing.  But what do you think is going to happen when their oldest kids start turning four? They’re going to be out the door to the land of Safe Public Schools in time to register for Kindergarten. Watch Marin values skyrocket then.  You read it here first.

Remember, a little of something is better than renting a lot of nothing.  And today’s Black Friday Deal is about as little as you can get.  But it’s a little sliver 600 feet from the beach… and a little less of a walk every day!

We’ve dropped by the Buena Vista “Mobil Home Park,” the only trailer park in Palo Alto, a few times.  But Burbed reader Stefan alerts us that the much-maligned mobile mews may be moving on.  Thanks very much!

Burbed reader Real Estater also mentioned this article in comments.

Palo Alto mobile-home park faces redevelopment

Buena Vista residents could be forced out to make way for apartments

by Sue Dremann, Palo Alto Weekly Staff

Buena Vista, the only surviving mobile-home park in Palo Alto, could soon be history, according to city officials.

Residents in the 117-unit park located at 3980 El Camino Real received a letter from property owner/manager Joe Jisser last week informing them that his family is exploring redevelopment options.

The family has owned Buena Vista, located near Los Robles Avenue behind a strip mall, since 1986, Jisser said on Monday. They are working with Prometheus Real Estate Group in San Mateo.

Prometheus specializes in the acquisition, development and management of residential and commercial properties and builds apartments, according to its website. It also focuses on transit-oriented development in areas that are close to corporate campuses, such as Apple in Cupertino and Google in Mountain View.

You think 15 units per acre is too dense for Palo Alto?  Promethius Development has many more rent-paying people per parcel planned for what they’re putting in.  Try 40 units an acre.  If you’ve read this book, just imagine life in The Stacks (which are literally mobile homes stacked into slum towers).

Why is the owner finally considering selling out, after owning the park since 1986?  Infrastructure.  Water pipes and electrical wires and transmission are nearing the end of their useful life, and state codes have changed.  It isn’t enough to replace them, they’d have to be upgrades.  Not only that, most of the mobile homes in the park are too old to handle new systems.  And not only has the electrical code changed.  So has the law on spacing the units themselves.  Keeping the park legally open is going to become very, very expensive.

Meanwhile, the City of Palo Alto has a plan for development, and that includes multifamily homes along El Camino Real.  So apartment blocks are looking pretty likely.  And the low-income folks living here may well be SOL.  There is a city law that says they should get moving-out money, but realistically, there aren’t a lot of places they can go.  Many of them will move out in advance of the paid relocation, simply to ensure finding subsidized housing elsewhere.

Be sure to check out the comments on this article.  Some posters are glad to see the park go, and some prefer it stay in favor of a denser apartmentplex.  Of course most of them are worried about all those extra kids moving into THEIR SCHOOLS.  Because anyone moving into an apartment isn’t a Real Palo Alto Resident and should never be allowed to enroll.  We can’t understand why the trailer trolls are allowed, either.

But fear not.  Even if the BV is scraped to the ground and a shiny new (and dense) apartment complex goes up in its place, there will always be mobile home living in Palo Alto.

…Once they’ve seen the bright lights of South San Jose?  This is a floor wax and a dessert topping, two mints in one, yes an actual farm in San Jose.  Thanks very much to Burbed reader Abby Dow for this fantastic farmyard complete with funky photos and retail store pricing.

3630 KETTMANN RD
San Jose, CA 95121
$2,999,999

3 beds
2 baths
1300 sqft
8 acres
1937 built
18 days on site
MLS# 81229181
Walk Score™ 48

Wow- Great Location and Potential. Developers, investors and owner builder; come see for yourself this one of a kind evergreen property, wonderfully located on 8+ acres.

The value must be in the land because the actual house doesn’t appear in the listing photos until you get to #4.  Our pal Abby seemed quite taken with the idea:

I’m sure this is priced for development, but it’s still strange to see a shabby looking little farm with a rundown house going on the market for $2,999,999 in San Jose.

It sure is.  8 acres?  It should be going for $3,999,999, especially with trash bins of this quality.  Plus you can be lord of the manor on that much property right in the middle of all this suburban sprawl.

Except that big house we’re seeing on Streetview is someone else’s manor.

You’ll get to know them well, as it looks like you’ll be sharing that gated one-lane road.  That’s going to be awesome when you build you PUD zoned 12 homes to the acre.  Who needs Santa Cruz, you can play real bumper cars just trying to get in or out!

Who wants to make a small fortune in real estate?  You know what to do: start with a large fortune.  That is, unless you’re investing in Real Bay Area real estate.  Then all you have to do is let the checks roll in while the property appreciates every single minute!

Thanks very much to Burbed reader Michael Boltonestater for this bodacious apartment block in… of course!  Mountain View!  In case you haven’t already noticed, we’re giving Mountain View a lot of extra love for three days in a row.  Why?  Because we didn’t talk about them once last week!

1720 WRIGHT Ave
Mountain View, CA 94043
$2,200,000

BEDS:  -
BATHS:  -
SQ. FT.:  8,120
$/SQ. FT.:  $271
LOT SIZE:  0.55 Acres
STORIES: 2
YEAR BUILT:  1969
COMMUNITY:  North Shoreline
COUNTY:  Santa Clara
MLS#:  81228487
SOURCE:  MLSListings
STATUS: Active
ON REDFIN:  9 days

The units are unusually large, averaging 902 square feet. They offer private backyards and balconies that face an expansive green space protected by the city. Built on over half an acre the land offers the investor a very strong long-term investment as both a rental property or a for sale redevelopment opportunity. The property is less than a mile from a number of major Mountain View employers.

Every real estate purchase is an opportunity in the RBA, and this is a great example.  We particularly like the realtard’s 100% correct but absolutely useless claim that the units average 902 square feet. The listing info says the building has eight one-bedroom apartments, each 865 square feet, and one 2/1 apartment, weighing in at 1200 sf. 

Are you on the fence about buying this place?  So’s the math!  The Gross Rent Multiplier is 15.03, right in between buy versus rent.

And speaking of opportunity, check out the location!

Looks like you’ll have a front row seat on whatever’s going in that right-of-way!  Maybe if you’re really lucky that’s the alternate route for High Speed Rail!

We get all kinds of mail at Burbed.  Here’s one that asks us for some advice.  Instead of our just sending our answer, wouldn’t it be awesome if we sent several responses?  Our readers are a fairly high-powered bunch, so let’s go!

Dear Burbed.com,

My name is Darren and I am a business student at <school not in the Real Bay Area>.  I’m taking part in a summer business incubator program in <city not in the RBA> where students create startup companies.  I believe the best businesses begin by solving a problem and I’m interested in building my business around helping real estate investors since this has always been an area of interest for me. 

I was wondering if you could take a few minutes to answer some of my informational interview questions below?  I am trying to determine what problems/inefficiencies real estate investors encounter that I could solve through developing a software solution.

I appreciate your help.

Thank you,

Darren <last name goes here>

Questions:

1.)    What is the biggest hassle real estate investors have to deal with?

2.)    If you could wave a magic wand and change something about what you do, what would it be?

Here are our answers for Darren.  What are yours?

1.) The biggest hassle for real estate investors is buying a property and subsequently discovering that it wasn’t in the RBA after all.  Usually this is revealed right after the comps drop.

The second biggest hassle is when business students ask anyone running a website even remotely related to one of the topic terms to do their homework for them.

2.) What would we change?  We would find a way to monetize this site using advertisers who would pay us $1000 per pageview.  Also, we’d implement better email tools to direct these sort of blast requests directly to our readers who are here to help.  Plus we’d give ourself super powers.  No way are we letting go of this magic wand.  We may throw it open to our readership to suggest how to use it on people like Darren.  We’re debating between “sic a high-pressure real estate investment salesman on him” and “replace his computer with a motivational book.”

We’ll be sure Darren sees your answers.  Hopefully he’ll also answer some of our questions.  Our first one is “If you could be any kind of house, what kind of house would you be?”

This is also your Weekend Open Thread.  Feel free to tell us what kind of Open House you’d be as well.  If you could wave a magic wand and change something about the house, what would it be?

Some cities are more compliant than others in providing BMR (Below Market Rate) housing.  Perhaps Menlo Park will be getting off the “But we don’t have any below market residents” excuse pot.

Menlo Park eyes below-market rental housing

HIP Housing proposes deal with Menlo Park

by Sandy Brundage, Almanac Staff

The city of Menlo Park has its eye on a Willow Road apartment complex that might be purchased for use as below-market-rate rental housing — something that currently doesn’t exist in Menlo Park.

The 12-unit complex, located at 1157-1161 Willow Road, comes with a price tag of around $2 million, according to a representative from HIP Housing, a nonprofit organization that specializes in finding below-market-rate housing and hopes to partner with Menlo Park on the deal.HIP currently operates 13 rental properties in San Mateo County.

The Willow Road complex would rent nine units to people earning less than 50 percent of the regional median income of $81,300, and three units to those making less than 30 percent. Rent at the complex would fall in the range of $610 to $1,016, according to a staff presentation.

A real estate listing described the property as vacant and partially renovated; it also said the complex had won a renewable energy award for upgrades such as solar panels and efficient lighting. Laundry and parking are available on site.

The apartment buildings are not currently for sale (the first is pending, the second is merely delisted).  They were built in 1958.  If you want to dig deep into the offering memorandum for the two buildings, have a look at this PDF.  And check out the pictures.  Solar panels!  Sweet!

Assuming the rental numbers are correct, that would give this complex a rent ratio of 10.26.  BUY!!!!!!!!  Then again, I’m not sure I trust these numbers.  Notice something hinky here?

While Burbed has yet to amass a huge portfolio of investment property, even we can tell the difference between a 5 and a 50% vacancy rate.  This is another great reminder of how Real Estate Professionals deserve those hefty commissions, whether commercial or residential.

Discuss this neighborhood, older apartment homes like these, BMR housing, any Open Houses you visited, or anything else you can think of. Yes, this is your weekend open thread.

Burbed continues with Burbed reader Petsmart Groomer week, and now we return to Palo Alto.  Ah Palo Alto, home of high prices for working-class residences.  This fine investment property/teardown/whatever cannot be yours because it went pending in just six days.  Let’s drool on it and hope the sale falls through.  We’ll use Zillow this time because Redfin already took the listing copy and pictures down.

2316 Amherst St
Palo Alto, CA 94306
$1,498,000

Beds: 4
Baths: 3
Sqft: 2,025
Lot: 6,098 sq ft / 0.14 acres
Type: Single Family
Year built: 1959
Parking: —
Cooling: —
Heating: —
Fireplace: —
On Zillow: 9 days
MLS #: 81211442
County: Santa Clara
Legal description: —
Parcel #: —
Per floor sqft: 2,025
Zillow Home ID: 2120434658

Sold in conjunction with 2320 Amherst. Two buildings: 2316 is spacious 1/1 with hardwood & updated kitchen. 2320 has 2/1 downstairs with refinished hardwood & updated kitchen; small 1/1 upstairs with huge deck and lovely views of the hills. Both buildings have laundry facilities. Legally 2 lots, zoned R1. Fabulous College Terrace location – Move in, buy for investment or build a new home! [Listing information © MLSListings Inc. All rights reserved.]Brokered And Advertised By: Dreyfus Properties, Inc.Listing Agent: Lucy Berman

This one is a Wow!  As in Wow, that photography really hurts to look at.  We’ll include a number of pictures in case the listing is scrubbed from teh internets forever.

You can also try your luck with the Virtual Tour, which has the same pictures, only in much sharper focus.  The color intensity is still dialed up to 11, though, so you keep that feeling you accidentally wandered into The Bee Movie.

This photo at right is from the Virtual tour.  It’s the only one not on Zillow as well, and lucky for us, it’s got that riot of color so distinctive of this photographer.  The kind of buyer who wants an investment property in Palo Alto will definitely appreciate this effort that makes it look like a Henri Rousseau painting.

The rest of the photos, available after the break, are straight from Zillow.  That way you can enjoy the blurry effect on top of the bright colors.

(more…)

Real estate is a great investment that can pay you to live in your house.  That is, it pays you to live in your house if you rent some of it out.  Here’s an investment opportunity too good to miss from Burbed reader Petsmart Groomer.

3799 PARK Blvd
Palo Alto, CA 94306
$1,149,000

BEDS: 3
BATHS: 3
SQ. FT.: 2,236
$/SQ. FT.: $514
LOT SIZE: 6,930 Sq. Ft.
PROPERTY TYPE: Detached Single Family
STORIES: 2
YEAR BUILT: 1979
COMMUNITY: Ventura
COUNTY: Santa Clara
MLS#: 81207935
SOURCE: MLSListings
STATUS: Active
ON REDFIN: 30 days

Duplex home set up as a two separate units of 1,100sq feet each rents for $1,950. 1 level is a 2 bedrooms/2 baths and the other unit is a 1 bedroom/1 bath rents for $1,500 on a month to month. 1 car garage is rented for $100 a month. Home can be shown by appt only every TuesdayRight fence to be fixed before close of escrow.

The market is hot, hot, HOT here at Ground Zero of the Google-Facebook Nexus.  I don’t understand why this one hasn’t been snatched up yet.

Any ideas why some dot.com entrepreneur hasn’t moved into one unit, rented out the other, did some internets magic in this amazing Garage, and raked in the Profit?

Is it because the listing copy has even Redfin too befuddled to compute a rent ratio?

If we just add up all the dollar amounts mentioned above, we get $1149000 / ($1950 + $1500 + $100) * 12 = 26.97.  That ratio would say “RENT!” anywhere but in Palo Alto.  Here, just getting the privilege to bid on a neglected rental property in a dynamic neighborhood right on the cusp of High Speed Rail is such an honor, the agent won’t show you the inside.  Even though today is Tuesday.

Today’s fun find is a Cambrian cutie from Burbed reader yaknuts.  If you’ve been wanting something in the suburbs, but enjoy a sense of excitement and unpredictability, this may be the house for you!  Come and talk a walk on the wild side of the Cambrian!

3682 May Ln
San Jose, CA 95124
$439,900

BEDS: 3
BATHS: 2
SQ. FT.: 1,234
$/SQ. FT.: $356
LOT SIZE: 7,519 Sq. Ft.
PROPERTY TYPE: Detached Single Family
STYLE: Ranch
STORIES: 1
YEAR BUILT: 1959
COMMUNITY: Cambrian
COUNTY: Santa Clara
MLS#: 81204098
SOURCE: MLSListings
STATUS: Pending Without Release
ON REDFIN: 25 days

This is a CASH AS-IS SALE ONLY. contractor exp investor Special. THERE IS NOT A KITCHEN SO FINANCING IS NOT POSSIBLE. Aproximatly 500 foot of unpermitted additional space. Garage has been converted to living space. The property is dangerous holes in floors debris all over, dog waste all over back yard. Old garage converted to living space. Cooking done in microwave and outdoor bbq grill.

Here’s why yaknuts thought this home was Burbed-worthy:

I have been a long time reader of your blog. I came across this listing the other day (already taken down from Redfin).

Check out all the junk in these pictures and the description: "the property [has] dangerous hols in floors," "dog waste all over back yard," or "cooking done in microwave and outdoor bbq grill." It went pending on 2/5/12 for $439K. I don’t have time to do a full write up at this time, but I had to bring this to your attention. I hope to see a feature on this property soon — you should have plenty of material in this listing. Cheers!

This is one of those features that just writes itself.  After all, a picture is worth a thousand words, so we can save 7,000 of them.  Redfin could take these pictures down again any minute!

This must be one of those listings where the agent made a drunken bet with the broker.  In this case I’d venture they bet over whether incoherent photography sells houses faster.  That should explain why some of the rooms look almost staged, while others suggest they refused to spend 10 minutes picking up.

And since this poo palace went pending the very next day, congrats to the winner of that bet!  It clearly worked! 

Although we know who the real winner was when it came to this house: the geniuses who sold it in 2007 for $620K.

RadarLogic to launch housing futures

by LIZ ENOCHS
Thursday, October 13th, 2011, 5:21 pm

In about two weeks, hedge funds, mortgage lenders, and other investors will be able to bet on the future of the U.S. housing market without buying a home.

RadarLogic, a housing data provider, is introducing a tradeable futures contract based on its national composite index that compiles data on home prices in 25 U.S. metropolitan areas. The contracts are slated to be available through the CBOE Futures Exchange after receiving regulatory approval, which is anticipated within the next two weeks.

The product could help bring stability to the housing market and ultimately lower costs for borrowers, said Quinn Eddin, director of research for RadarLogic.

Who cares about how housing is doing nationally?  It’s doing terrible, that’s why I stuck in that photo of hard-earned equity getting burned up every month.  (Also I couldn’t find a photo of flat-screen TVs getting thrown out the window.)  But what you should care really about is When Can I Buy Myself a Futures Contract on the Real Bay Area?

RadarLogic is looking into regional and metropolitan-level futures contracts, but there’s nothing about an RBA-specific deal (which should obviously be called the RBAXX, because it’s eXtra Special Here).  Also, the RBX is only going to be settled twice a year. 

The RBAXX will need to be settled daily, because it will only go up. 

This is an Open Thread.  How much would you overbid to get in on the ground floor of the RBAXX?