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When a 14 year old buys a home for 12k, and rents it out for $700/mo is that...


By burritos   Follow   Mon, 26 Mar 2012, 3:45pm PDT   1,766 views   14 comments
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a sign we might be closer to the bottom of the market than we are at the top?

http://www.huffingtonpost.com/2012/03/12/14-year-old-willow-tufano-buys-florida-home_n_1340452.html#s776033&title=After

Yes, I know that she put money in to it to fix it up, but still, wow!

Comments 1-14 of 14     Last »

ThreeBays   Mon, 26 Mar 2012, 3:53pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 1

Yep, 12k must be pretty close to the bottom.
Time to raise prices back to 1M then. ;p

thomas.wong1986   Mon, 26 Mar 2012, 4:05pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 2

burritos says

a sign we might be closer to the bottom of the market than we are at the top?

tisk tisk tisk.. a minor has no capacity to enter into contracts (voidable), but it is a nice feel good story.

burritos   Mon, 26 Mar 2012, 4:12pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 3

thomas.wong1986 says

burritos says

a sign we might be closer to the bottom of the market than we are at the top?

tisk tisk tisk.. a minor has no capacity to enter into contracts (voidable), but it is a nice feel good story.

The mother bought it. Both put in 6k. There's an understanding that the girl would pay off the other 6k till she's 18 at which point transfer of deed would go to the girl.

clambo   Mon, 26 Mar 2012, 4:15pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 4

Stop repeating nonsense. A 14 year old cannot enter into a contract.

thomas.wong1986   Mon, 26 Mar 2012, 4:16pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 5

burritos says

The mother bought it. Both put in 6k. There's an understanding that the girl would pay off the other 6k till she's 18 at which point transfer of deed would go to the girl.

Well that bursts that bubble of euphoria... just another flipper story...

tdeloco   Mon, 26 Mar 2012, 6:31pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 6

burritos says

a sign we might be closer to the bottom of the market than we are at the top?

Statistical data very frequently have outliers. Why do people build their mindset around one data point? Same thing for misleading anecdotes and testimonies. It would be better to take a broader view.

Also, Florida is one of the states hit hardest by the RE bubble burst. If anything, this data point is the outlier of an outlier.

Mobi   Tue, 27 Mar 2012, 2:45am PDT   Share   Quote   Permalink   Like   Dislike     Comment 7

That's kinda what I did. I bought a house ~ $20k, not much repair needed, and rented it out for $650 /month. Granted, it's in an iffy area, but not horrible. So, I would say there is still room (a lot of it) for price adjustment in better areas (otherwise I would buy in those areas instead.)

tdeloco   Tue, 27 Mar 2012, 3:06am PDT   Share   Quote   Permalink   Like   Dislike     Comment 8

Mobi, where did you buy? I could go for that also.

PockyClipsNow   Tue, 27 Mar 2012, 3:37am PDT   Share   Quote   Permalink   Like   Dislike     Comment 9

damn prices are really insane in coastal CA.....still cost 729k for a good 4 bedroom in good school district that isnt a starter shack builit in 60's.

It used to just be detroit with 12k homes for sale. Now detroit is giving them away free and FL is 12k homes.

Mobi   Tue, 27 Mar 2012, 4:15am PDT   Share   Quote   Permalink   Like   Dislike     Comment 10

tdeloco says

Mobi, where did you buy? I could go for that also.

Not in CA so probably will not help you. The rule of thumb used to be $65K house rented out for $650 here. But after the housing bust, price went down to half or even 1/3 in not so good school districts (but rent remains the same.) I can see rent going down a bit but since ou areas did not overbuilt like some areas in FL, I do not see a collapse in rent. You can probably find a lot of cities like ours in between the coasts.

RentingForHalfTheCost   Tue, 27 Mar 2012, 6:23am PDT   Share   Quote   Permalink   Like   Dislike     Comment 11

PockyClipsNow says

damn prices are really insane in coastal CA.....still cost 729k for a good 4 bedroom in good school district that isnt a starter shack builit in 60's.

It used to just be detroit with 12k homes for sale. Now detroit is giving them away free and FL is 12k homes.

Goes to show again that realtors are crooks. That house should have been available to all to buy at 12k. It is basically congratulating insider trading. The 14 years old has no idea that her mom just made her an accessory in a moral crime.

burritos   Tue, 27 Mar 2012, 6:28am PDT   Share   Quote   Permalink   Like   Dislike     Comment 12

For the record. I didn't say the bottom or close to the bottom. I said "closer to the bottom than to the top." You know, like 49 is closer to 1 than it is to 100.

PockyClipsNow   Tue, 27 Mar 2012, 6:43am PDT   Share   Quote   Permalink   Like   Dislike     Comment 13

i look forward to the updates on the article in future years:

Yr2013: genuious 13 year old flips home to FHA zero down buyer for 100k profitz!!!!

Yr2015: an article about the same buyer being a victim because they made zero house payments in 2 years and are getting mean letters about it and how foreclosures 'need to be stopped'.

Mark D   Tue, 27 Mar 2012, 7:01am PDT   Share   Quote   Permalink   Like   Dislike     Comment 14

aw how inspirational. i feel so motivated now. going to call my realtor tomorrow.

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