WC Varones

Don't lend your hand to raise no flag atop no ship of fools

Sellers unclear on the concept: 1176 Nardo, Encinitas, CA

Wishing price for your smaller, older, rental house, in an average-ish neighborhood east of the freeway: $695,000.

Refusing to let prospective buyers see the house before agreeing to buy it: Priceless.
Please DO NOT DISTURB OCCUPANTS. SHOWN WITH ACCEPTED OFFER AND 24 HOUR NOTICE TO OCCUPANTS/TENANT. DO NOT DISTURB TENANTS!! CALL LISTING AGENT WITH ANY QUESTIONS. Shown with accepted offer only with 24 hours notice to occupants/tenants.

UPDATE: To try to fill in the seller's picture a little more, let's look at the tax assessment. The same Redfin link shows an assessed value of $562,343. This would be what the seller paid for the house, minus 2% per year for inflation. That would mean the seller purchased for around $525,000 near the peak, in 2004 or 2005. Now assuming the seller has great credit and locked in a 5.5% 30-year-fixed loan with 20% down, his mortgage is going to be $2400 a month. Property taxes on the place are $520 a month. So he's into the place for at least $2920 a month, assuming he got a great rate and put in a big down payment (not likely in the bubble years), and before maintenance and insurance. Realistically, the guy's probably looking at closer to $3500 a month.

So what could he rent it for? Well, there are an awful lot of 3-BRs west of the freeway going for $2200 - $2800. And this guy's place is old and tiny. For comparison, here is a much nicer 4-BR in the same neighborhood for $2750. If he's getting $2500 a month for it, he should be kissing his tenants' feet. Hence the reluctance to disturb said tenants. Still, $2500 coming in each month and $3500 going out is not a pretty picture.

Still delusional from the bubble though, Mr. Landlord doesn't want to cut his losses and price his house in the $400,000s where it might sell. He's holding out for some sucker to come along who wants to pay a big premium to buy a dump.

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