So Much for that FlipPosted on Thursday, February 3rd, 2011 at 5:21am.
Here's an update on one of them: It didn't work.
801 11th (4br/3ba, 3025 sq. ft.) is a newer (2004) custom Caliterranean in a compromised location. (The home runs along somewhat busy Pacific and backs up to a commercial property, 50 yards from MBB.)
This one's been on the radar multiple times. It was offered for sale from May-August 2006 at $2.495m (pre-MBC), and again from June-August 2007 for $1.995m. (See "Figuring Out a Location Discount" from June 2007.)
In April 2010 it came back as a short sale at $1.6m, with the listing touting that price as "approved" by the lender. After a couple sips of short-sale kool-aid, apparently, even MBC called it "a veritable steal for a fairly large Hill Section house."
801 11th foreclosed last July, with an investor grabbing it for $1.320m.
Back to market it was for 11th, with the would-be flipper asking $1.590m (+$270k/+20%). After a couple of months, the price was down to $1.499m, still a little markup.
Well, we already told you this whole flip didn't work. The resale price, just posted: $1.380m.
So, yes, the market was right to reject the home at $2.5m and $2.0m in the late bubble years, and last year's short-sale opportunity at $1.6m doesn't look so hot, either.
The would-be flipper would break even at this price with about 4.5% costs of sale (ignoring holding costs since last July), but this was basically a flip that flopped.
As to the other "foreclosure flip" at 2612 Poinsettia, it ran 60 days last year and was supposed to come back in January this year. (See "Sketchy Speckie Returns" and "Sunday Opens (9/5)" for a review.) Hey, it's February, time to see how that one plays out, isn't it?
comments powered by Disqus