The Morning Report
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Reader J passed in this tidbit about a house in Clairemont:
I watched this house sit for over a year at $235k, then it sold mysteriously for 185k. Closed earlier this month at 340k. Looks like all they did was replace paint and flooring – but – they cemented over the pool rather than fix it! Breaks my heart.
Reader AT, a local real estate broker, passed along a couple of successful flips with potential profits (depending on the flippers’ investments) of more than $150,000. He passed them along with a lot of great detail — note the short periods of time between purchase and sale, and the difference in price:
15784 Caminito Cercado
San Diego, CA 92128
Purchase Price: $230,000 (CASH)
Purchase Date: 3/20/2009
Sold Price: $400,000
Sold date: 5/26/2009
That’s a potential profit of: $170,000.
11234 Pinestone Ct
San Diego, CA 92128
Purchase Price: $300,000 (CASH)
Purchase Date: 4/09/2009
Sold Price: $480,000
Sold Date: 7/31/2009
AT dropped some analysis into the mix, too:
There are lots of example of investors that are successfully buying and flipping in this market. The common theme seems to be that all these investors are buying up properties using CASH $$ and the banks are more likely to give them a break on the price. There is tremendous opportunity but the only problem is where do you get the cash to start flipping??
Reader TL echoed that sentiment, especially about neighborhoods in ZIP code 92114 and Spring Valley.
Here’s one example among the dozen or so he passed along.
An investment group bought 7662 Shorewood Drive in Encanto for $125,000 on May 14. The group rehabbed the property and it’s now in escrow for $239,000.
Keep in mind the pros make money doing it and the amateurs won’t.
Reader DP sent in a flyer of a house in escrow in her Normal Heights neighborhood:
Definitely a house being flipped. It went on sale a few months ago, was bought up and completely refurbished (including putting in lawn beside newly replaced sidewalks; something that amuses me in this water conservation era). … No doubt it is being sold for much more than it was bought for.
And one more:
Reader GJ passed this along, a property he noticed in the course of putting offers in on short sales around $400,000, only to get beat out many times by all-cash investors:
Not sure if I’d consider this a flip, but 3104 Juniper Street in South Park just sold and is now for rent. It sold for $450k (which is a good price for the place – cash offer I bet). I just saw it for rent on craigslist for $1995/month. If you bought it with 20% down your mortgage payments would be about $2000 a month. Obviously an investor.
Any more flips you’ve found? Drop me a line at firstname.lastname@example.org.