patrick.net

 
register or log in

#housing #investing #politics
10,859 registered users, 1 online now: BlueSardine
public post private group chat

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

  share  

By burritos   2012 Mar 26, 3:45pm   ↑ like   ↓ dislike   2,737 views   14 comments   watch (0)   quote  

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 »

1   ThreeBays   3/3 = 100% civil   2012 Mar 26, 3:53pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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

2   thomas.wong1986     2012 Mar 26, 4:05pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

3   burritos     2012 Mar 26, 4:12pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

4   clambo     2012 Mar 26, 4:15pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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

5   thomas.wong1986     2012 Mar 26, 4:16pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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...

6   tdeloco     2012 Mar 26, 6:31pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

7   Mobi     2012 Mar 27, 2:45am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.)

8   tdeloco     2012 Mar 27, 3:06am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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

9   PockyClipsNow   31/31 = 100% civil   2012 Mar 27, 3:37am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

10   Mobi     2012 Mar 27, 4:15am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

11   RentingForHalfTheCost     2012 Mar 27, 6:23am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

12   burritos     2012 Mar 27, 6:28am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

13   PockyClipsNow   31/31 = 100% civil   2012 Mar 27, 6:43am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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'.

14   RealEstateIsBetterThanStocks   154/154 = 100% civil   2012 Mar 27, 7:01am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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

Comments 1-14 of 14     Last »

home   top   users   about   suggestions   contact  
topics   random post   best comments   comment jail  
patrick's 40 proposals  
10 reasons it's a terrible time to buy  
8 groups who lie about the housing market  
37 bogus arguments about housing  
get a free bumper sticker: