« previous   misc   next »

59 Sparrowhawk Irvine, CA 92604


By Goran_K   Follow   Tue, 13 Nov 2012, 1:12pm PST   1,589 views   10 comments
Watch (0)   Share   Quote   Permalink   Like (1)   Dislike  

This house is listed at $524,900, REO.

What attracted me to it was that it was a single story home, nearly 2,200sqft in a desirable area (Yale Loop in Irvine).

Walking up to the front door, it was obvious this home had some "deferred maintenance". The garage door had wood trim pieces literally hanging on by a single nail, there were two pieces of wood on the driveway. The grass was dead, and the windows looked like they needed to be sealed. Not a great first impression.

Walking into what might have been the living room, I was caught off guard. The house had no floors. Literally concrete, and exposed nails sticking out where the baseboards should have been. The kitchen was missing most of the cabinets as well. Looking around, I noticed all sorts of cracks running across the floor, and up the walls to the ceiling. This home looked like it had major foundation issues.

I asked the agent about it, and he responded with, "Some work has been done with the foundation, the bank has fixed it." Yeah......

The backyard was a decent size, especially for Irvine, but backing to Culver Street, there was definite street noise. Livable for some, maybe not for most. The grass was also dead. The roof from the back looked to be in okay shape, but probably would need replacing in 5 years or so. At least it wasn't wood shake.

Overall, not a very impressive tour. It's certainly priced right, but I would estimate at LEAST $60,000 to $80,000 worth of work to get the home into condition to make it actually livable for a family. Could be worth it for someone with lots of cash on hand.

Comments 1-10 of 10     Last »

E-man   Tue, 13 Nov 2012, 4:20pm PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 1

What's the FMV after you remodeled the house?

Goran_K   Tue, 13 Nov 2012, 11:16pm PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 2

Based on comps, if this home were fully remodeled, it might sell in the $640k to $660k range. It does back to Culver, but it's also 2,200 sqft on a single story plan (very hard to get in Irvine).

So based on the $524,900 list price + $80,000 out of pocket expenses to remodel, it looks like a good deal.

BUT....

The cracks from the floor, going all the way to the ceiling are worrisome. Foundation issues always give me pause. The bank said they fixed it, but who knows? Will this home even get traditional financing? I'd love to see the inspection report on this house if someone does try to buy it. I have a feeling that there is some costly repairs I may be missing from my cursory tour last weekend.

Goran_K   Wed, 14 Nov 2012, 8:40am PST   Share   Quote   Permalink   Like   Dislike     Comment 3

Well, I guess I know why this house is priced so cheap. About 400-500sqft was part of a poorly done addition on the right side of the house. The foundation is sinking at one end, and rising at the other, causing major cracks throughout the area (I noticed this myself while touring).

With that new knowledge, I'm guessing this house is priced way high, because the cost of repair might tack on another $50,000 to $80,000 alone, cash out of pocket. Who knows what else might be wrong.

Goran_K   Wed, 14 Nov 2012, 8:49am PST   Share   Quote   Permalink   Like   Dislike     Comment 4

E-man says

Goran,

This is a dream property for investors/flippers. You have to pay all cash. The house needs a lot of work and has foundation issue. I see the potential for a lot of profit here. Don't be surprised that someone will buy it for $400k-$450k all cash. When it hit the market again in the next several months, it will be priced at $699k. That's my take based on what you have described above.

Yeah I have no doubt that someone will buy it all cash, and do the remodel work and fix the foundation. If they buy it for $450,000, and have to do $150,000 of repairs, I could see it going back on the market at $700k. This is definitely a flipper special IMO.

Goran_K   Wed, 14 Nov 2012, 9:20am PST   Share   Quote   Permalink   Like   Dislike     Comment 5

I think you should do it E-man. :)

Goran_K   Wed, 14 Nov 2012, 11:26am PST   Share   Quote   Permalink   Like   Dislike     Comment 6

I'm a simple guy. In terms of real estate, if I were to become an investor, I might look at multi-unit. Flipping SFHs isn't for me.

Goran_K   Wed, 14 Nov 2012, 11:43am PST   Share   Quote   Permalink   Like   Dislike     Comment 7

Yeah, I don't think so either. Hence.

zzyzzx   Thu, 13 Dec 2012, 12:50pm PST   Share   Quote   Permalink   Like   Dislike     Comment 8

Goran_K says

Well, I guess I know why this house is priced so cheap. About 400-500sqft was part of a poorly done addition on the right side of the house. The foundation is sinking at one end, and rising at the other, causing major cracks throughout the area (I noticed this myself while touring)

How much would it cost to undo the add-on?

Goran_K   Thu, 13 Dec 2012, 1:08pm PST   Share   Quote   Permalink   Like   Dislike     Comment 9

I'm not sure. It would have to be sizable.

It sold for $555,000. I'm actually surprised. That had to be all-cash, or pretty close to it.

Goran_K   Tue, 18 Dec 2012, 9:45am PST   Share   Quote   Permalink   Like   Dislike     Comment 10

We'll see. That would be one of the highest prices for a home in that neighborhood in the past 5 years, especially one that backs to Culver (pretty much a freeway).

My best is it still goes for under $700,000.

Goran_K is moderator of this thread.

Email

Username

Watch comments by email

home   top   share   questions or suggestions? write p@patrick.net