Remember my uncle’s house in Los Altos?
The buyers paid $4,137,000, and financed $2,689,000, which at 7% will be around $17,890 per month. Add around $4,000 per month for property taxes and $1,000 for insurance and it totals $22,890 per month.
And now they are renting it for $8,500?
Get Good Help!
That’s 8.5k a month of free money if you have no intention of ever paying the mortgage.
This is what banks are encouraging if they continue to now prioritize foreclosures.
Wow! I actually just saw yesterday that the house you offered on is up for rent – for $7,350 a month!
https://www.zillow.com/homedetails/9017-Sundance-Ct-San-Diego-CA-92129/52512748_zpid/
I thought of you right away. Remember how your buyer bid 12% over asking, and it ended up selling for about 16% over at $2,300,000? I think the new owners are from the Bay Area too.
Yep, they have a Santa Clara address.
They financed $1,725,000 and at 7% the payment is $11,476 + $3,000 for T&I = $14,476 per month.
Maybe they need a write off?
Rents are usually 20 to 30 percent lower than the total cost to buy until inflation and property appreciation (Rule of 72) turns the rental into a situation of positive cash flow, in my case it’s buying a million buck asset for 20 to 30 percent of what it cost originally and even that is for a limited period of time. The drawback is of course you have to paint the bloody thing. I’m maintaining one of mine at the moment and perusing bubble into during teatime.
It’s a .4 acre lot in Los Altos. They’re probably just looking to put someone in there short term while they’re waiting for the plans and approvals to tear it down and build their new 10,000 sq ft home.
Yes and on a busy street and it has 8-9 pine trees that are 30-50 feet tall.
I wouldn’t spend the $150,000-ish to remodel it just to put tenants in for a few months (although you can depreciate a rental) and then tear it down. But that’s just me.
The lease for the PQ house is only for 11 months, so perhaps their move was delayed. The sellers also stayed for two months post-closing, likely for free, and the house was tented after they moved out. So far, the property has been bleeding money.