Audacious Flips and Renovations

[Alan]

According to Zillow*, your house is currently worth $530k. If it will be worth $600k in three years then that comes out to around 7% annual appreciation. Assuming the $800k house appreciates at the same rate then your future home is selling for $700k today. That $100k you plan to save will be completely eaten up by the appreciation. Break-even is an expected place to be in the market so that does not surprise me.


If you sold your current house right now and moved into your $700k dream home then you would only have to borrow another $170k. That would add about $1500 to your PITI.

If you want $100k at the end of three years, you will have to save $2400/month and earn 10% on those savings. You can have the same house now for only $1500/month extra.

I'm going to pretend that you financed your entire $430k purchase at 6% for 30-years. Your PITI is around $3200/month. Your home is around 1400 square feet. My observations put rent at about $1/sqft. You
could rent a comparable place for $1400/month.

What if you sold today? You would have $100k in appreciation to invest. You could invest the difference between rent and PITI -- $1800/month. You could also invest the $2400/month you are saving to $100k. At the end of three years earning 10% on your investment you would have $300k cash. Compare this to the $270k equity you will have with your current plan (given my assumptions -- which are certainly not accurate).

Oh, and since you are saving $2400/month and paying $2400/month on your mortgage it sounds like you are living well within your means. I applaud you for making such responsible decisions (and it sounds like purchasing the $700k house might be within your means too). Unfortunately (for me) I am not in a financial position to follow in your footsteps.

* I gathered the personal data from Zillow using the address you provided. I do not care who you are and I do not want to know any more personal information about you.)

[meshugy]

[Alan]

[biliruben]

Arg... the house in the first post just went contingent. More proof there are still some greater fools buying fast a furious in the Seattle market, though I haven't yet seen what they paid.





Lists at $885,000.
Zillows at $490,663.

In remodel process:Offer by 4/15 and choose paint floor covering, cabinets, inside doors, hardware & plumbing fixtures.

Is this desperation as the market teeters on the brink, to coral a buyer before the decline? Dunno.

Did they run out of money, and need the down-payment to finish the work? Dunno that either. It will be interesting to watch.

[meshugy]

[Puget Sounder]

[biliruben]

Well that last one's at 62 days and counting. Perhaps the market isn't so strong after all, Shug.

Just to rev this thread back up, and get it back on track from all that speculation about Meshugy single-handedly depressing local RE prices...





Purchased for $400K in 2002. Listed at 1480 sq. ft. on King County, though they have the audacity to list it at 2760 sq. ft. now that they walled up the bat-cave down below.

This baby could be yours for the low-low price 959 thousand dollars. If you offer a cool mil, they'll throw in the bats.

[ayles]

So what photoshopping has been done to that picture? Does not look real.

[biliruben]

Not sure.

Not nearly as bad as one I saw down in the southtowns someplace. Photo-shopped a 'Vet out front in the driveway, and then got a little carried away photo-shopping blue sky (even though the ground was wet), and turned a whole wall into sky!

Looked like you could see right through the house via the hand of Escher.

Too funny.

[ayles]

I know the photo! Not sure if I saw it here or somewhere else.

[Puget Sounder]

Flip of the month.

[Puget Sounder]

Oh, and take a look at MLS # 27058075.

I swore there would be no way that this condo unit (with a decent location, but in a building that's pretty comparable to the U-District apartment that I lived in from 2002-2004 during college for $850/month with one of my friends) would sell for $350k.

45 days, and it's now STI.

What did P.T. Barnum say? I guess the cheap IKEA furniture in the pictures went a long way.

[faster]

[mike2]

Here's one that went to preforeclosure quick. 200+ days on the market, sold for $415K last year now listed at $359K and is apparently still overpriced given how old the listing is.

12556 37 Ave NE
Seattle, WA 9815


That's -13% YOY if they manage to get the asking price.

http://www.redfin.com/stingray/do/print ... -id=297336

[EconE]

ok...so it's waterfront and comes with a boat slip....but over $850/sf.

nuf said.

MLS# 27093606