I took a look at this property yesterday after it had been on the market five days. I should have looked sooner considering a friend of mine mentioned the property before it hit the market.
The condition was good-the pictures I have are from one of the older units, I couldn’t get into the top floor two bedroom unit that looks like it had a recent remodel-condition was excellent.
This four unit building sold back in December of 2004 for $1.1 million. The bank took it back at the auction for $920,593, then turned around and listed it for $581,130.
A chance to own a building as nice as this in Bankers hill for under $600,000-$700,000 is awesome. As per the listing agent, previous rents were $1,500 for the two bedroom, $1,000 each for the one bedrooms, and $850 for the studio, for a gross of $4,350. Seems about right for the area. The interesting thing is, these rents are only about $100-$150 more than rents up the hill in neighborhoods like Normal Heights, but the purchase prices there are generally a lot lower than this area.
If you do 25% down with a 6% loan at $581,000, your principal and interest payment is -$2,612.54. You still have to add taxes (about $530 per month), 5% vacancy rate, insurance, etc, etc. At the price it’s listed now, what a killer deal.
Apparently the rest of the San Diego investor community thought this as well-I finally got a call back this morning regarding the status of the property from the listing agent’s assistant: ten offers, many of them cash, most over list price. All of them in four days.
Like most people on the listing side, she had the whole “smoke and mirrors” thing about the price and wouldn’t disclose it. If I break out my ouija board, I think this one will shake out in the low to mid $700,000’s or high $600,000’s. I’m interested to see. A lot of people will pay a premium to live/ own in Banker’s Hill.
The outside street pictures: the first one is looking towards downtown, and the second one is looking towards Hillcrest, both taken right in front of the building.
