Real Estate Crash thread

[Benny Profane]

shits still really fucking expensive in any decent place to live despite lots of foreclosures so I must be fucking retarded to not see this as the best opportunity in Benny's life.

That makes no sense, you know, but I know what you mean.

Benny, believe it or not, is a skier, and still hasn't seen close to lift RE get affordable, unfortunately. Just did a reco to one of America's small cities close to major pow, and, I can't live there. Fucking place is so fucking cheap. But, you know, ........cough cough....there's more than skiing.

[liv2ski]

That makes no sense, you know, but I know what you mean.

But, you know, ........cough cough....there's more than skiing.

Wait....what?

[Shredhead]

Benny, believe it or not, is a skier, and still hasn't seen close to lift RE get affordable, unfortunately. Just did a reco to one of America's small cities close to major pow, and, I can't live there. Fucking place is so fucking cheap. But, you know, ........cough cough....there's more than skiing.

Ogden?

I picked up a nice house in El Jebel. Five ski areas and tons of back country within 25 miles. Way more house than I need, but I got it for half what they paid to build?

[Benny Profane]

No, but I don't think I could live there, either. Christ, it's cheap there.

[liv2ski]

^^^^Benny, not to let the cat out of the bag, but I liked it when I visited some mags up there in February. The city has done a good job getting the downtown area revitalized and there are some sic homes that were built in the 1900's that I would love to live in. And errrr, you didn't here it from me but, Snow Basin is really fun. Yep, Ogden in the winter, Vancouver in the summer works for me.

[Benny Profane]

I don't know. If you're going to live in Ogden, live up in Eden. Closer to the goods, and still cheap.

[Shredhead]

Yep, Ogden in the winter, Vancouver in the summer works for me.

Ogden's OK, but if your already in Vancouver for the summer, why move for the winter? Snowbasin's not really known for it's early season? Or late for that matter?

[cramer]

For fucks sake, is cramer still reporting his monthly Zillow Zestimate. My home went up $3256 last month!!! Seriously. Stop.

whats wrong with zillow. if you do comparables in my area, i'd probably fetch more money. I have a larger lot, better kitchen and open concept. When i have new houses selling behind me for 260-275K with smaller lots and a couple hundy more in sq footage its pretty cut and dry. My value is on the rise. take zillow out of the equation and do the comparables. Sorry if im happy to see shit turning the corner here. Its a huge load of stress off me if i got laid off or something. I can get out of my house or rent it out without fucking my family over completely for the next 10 years. Thats really the good thing. Rent is sky high even out in BFE where i live. its nice to see the options open up instead of treading water the last 3 years. Either eway, carry on.

[liv2ski]

^^^^I recently read an MSN article on the 10 best appreciating areas in the USA and the bay area was one of them. So it makes sense your hanging in there. Tahoe on the other hand looks like it has started a new leg down with the arrival of spring, after likely a dismal rental season, due to little snow last winter. I wish I was ready to buy up there, but must stay patient and see how things unfold.

[4matic]

I have the only offer presented to BAC on a short sale across the street from me in East Bay Area. It sold for $467k in 2007 and my accepted bid is $220k. The appraisal was last Friday. Perfect rental house: New roof, electrical, wood floors redone, (cheap) granite countertops, interior paint. The outside is hideous. Zillow has rent estimate at $1711 and my payment will be $950 with tax and insurance. Nice family living in there hasn't been paying the mortgage for quite a while; I'd like them to stay if we can work it out.

[liv2ski]

Zillow has rent estimate at $1711 and my payment will be $950 with tax and insurance.

Well done 4matic. Not sure if I would want tenants in there that are not use to paying their bills though. I would certainly screen them well to make sure their other credit is perfect, dti is low and savings is high before talking them on. But that is just me hating on deadbeats.

[Benny Profane]

Yeah. How easily can you evict them for non payment? They've already proven that they know how to play the game.

[4matic]

Benny and Liv2ski, thanks for the heads up. Yes, that is definately a consideration but it is the approach the large acquirers are using and even BAC themselves are starting to do that; keep the deadbeats in the house and rent back. They have two children with one a two month old. They both go to work every day and drive nice cars. I'm tempted to turn it over to my (Spanish speaking ) realtor/property manager to handle the whole deal.

Benny, eviction in California is never easy. It is not a great place for landlord rights.

The house was taken off the market April 6th and the appraisals started last week so I'm optimistic on the outcome but short sales can fail at any point so I'm not counting my chickens either.

Pictures of dump:

[cramer]

Well done 4matic. Not sure if I would want tenants in there that are not use to paying their bills though. I would certainly screen them well to make sure their other credit is perfect, dti is low and savings is high before talking them on. But that is just me hating on deadbeats.

I hear you on hating on deadbeats. but they may be like my buddy in fresno who did the bad loan and his house payment went through the roof. his neighbor's dad came in and offered to buy their house on a short sale and rent it back out to them on a 2 year lease. They make good money and could easily afford the rent. So if you can find that kind of situation, its golden. He's a year and a half into that lease now so there are some good opportunities like that out there for both the buyer and the seller.

[cramer]

^^^^I recently read an MSN article on the 10 best appreciating areas in the USA and the bay area was one of them. So it makes sense your hanging in there. Tahoe on the other hand looks like it has started a new leg down with the arrival of spring, after likely a dismal rental season, due to little snow last winter. I wish I was ready to buy up there, but must stay patient and see how things unfold.

after reading this i just went and looked at the properties up there. Wow, it could be a little gold mine certain years. You could pay a years mortgage renting a place out up there during ski season. Theres some pretty simple houses on the market you could pimp out if you had the money. The lots are pretty big up there. Seems like a great long term investment and you've got a pad in tahoe at your disposal. That and somewhere to retire too. fkna, you've got my wheel's spinning upstairs. I thought it was alot more expensive up there. Did tahoe get hit as bad as everywhere else too? Or was i just clueless on the prices up there.

[shroom]

It sold for $467k in 2007 .

That number ^^ along with those pictures, blows my mind. I guess I don't get out of eastern WA much.

[cramer]

06/13/2006

Sold

$521,000

36.0%

$283

Public Record

This is what the guy paid for my house before me. I got in at 223k.

[schuss]

That number ^^ along with those pictures, blows my mind. I guess I don't get out of eastern WA much.

The bay area is stupid pricing wise.

[cramer]

The bay area is stupid pricing wise.

Not yet, but its heading that way again. Silicon valley is on fire again. rents and home values on fire again in that area. Pushing people out to other areas to rent and buy. Its the same thing down here every 10-15 years. Its a pretty vicous cycdle unless you cop a home and sell it for a big profit and leave california. Thats the big problem down here is you can come out big, but you either have to buy bigger or invest that monetary gain in a business. My buddy hit it big in 2005 and ended up having to buy a subway franchise. They only give you 30 days i think he said or capital gains tax. buying another house wasnt an option for him. Thats when the houses in BFE started hitting like 600K+

[Hugh Conway]

The bay area is stupid pricing wise.

Compare earning potential to Eastern Washington sometime.

no cramer, the current "boom" is nothing like 15 years ago.

[Shredhead]

They only give you 30 days i think he said or capital gains tax. buying another house wasnt an option for him.

1031 is 45 to identify and 180 to close.

[liv2ski]

Not wanting this thread to get all Cozy and Rosie, back to reality:

No Housing Recovery Until 2020 In 5 Simple Charts

"Every day (for the past 3 years) we hear countless fairy tales why housing has bottomed and will improve any minute now. Just consider the latest kneeslapper from that endlessly amusing Larry Yun of the NAR, uttered just today: "pent-up demand could burst forth from the improving economy." Uh, right. Here's the truth - it won't and here is why, in 5 charts from Bank of America, so simple even an economist will get it".
http://www.zerohedge.com/news/no-hou...-simple-charts

[powder11]

Not wanting this thread to get all Cozy and Rosie, back to reality:

No Housing Recovery Until 2020 In 5 Simple Charts

"Every day (for the past 3 years) we hear countless fairy tales why housing has bottomed and will improve any minute now. Just consider the latest kneeslapper from that endlessly amusing Larry Yun of the NAR, uttered just today: "pent-up demand could burst forth from the improving economy." Uh, right. Here's the truth - it won't and here is why, in 5 charts from Bank of America, so simple even an economist will get it".
http://www.zerohedge.com/news/no-hou...-simple-charts

If you're talking about the run and gun days of can't lose flipping, yeah, probably not happening for awhile, but if you want to get into a home for the next 5-15yrs, then buying a home at todays prices & interest rates is a no brainer.

[Benny Profane]

If you're talking about the run and gun days of can't lose flipping, yeah, probably not happening for awhile, but if you want to get into a home for the next 5-15yrs, then buying a home at todays prices & interest rates is a no brainer.

Again, think what will happen when interest rates go up, which is the only direction they can go. That's right, prices drop, because people buy payments.

[ncskier]

good grief that house in the bay area even at 220k is ridiculous. Good for you living amongst the 1% i guess. That house today in north carolina would sell for 50-75k tops. Although I could still get renters for 700-900. It looks like California is tough on landlords rights and ROI. Based on the original price of 400k plus I would have put that place on crackshack or mansion.