Double Your Money Thread

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ABC123_IHB

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I'm looking for examples like <a href="http://www.redfin.com/CA/Irvine/28-Blue-Smt-92603/home/5900868">this one in Turtle Ridge</a> where the seller is looking to double his money.





28 Blue Smt Irvine, CA 92603

Price: $2,860,000

Beds: 5

Baths: 6

Sq. Ft.: 4,450

$/Sq. Ft.: $643

Lot Size: 9,388 Sq. Ft.



Last Sale: $1,433,000 (09/29/2004)
 
<a href="http://www.redfin.com/CA/Irvine/37-Ascension-92612/home/4745958"> 37 Ascension</a>



Price: $1,688,888

Beds: 6

Baths: 4

Sq. Ft.: 3,800

$/Sq. Ft.: $444

Lot Size: 5,812 Sq. Ft.

Year Built: 1997

Last Sale: $885,000 (08/23/2001)
 
<a href="http://www.redfin.com/CA/Irvine/15-Pemberly-92603/home/4745826"> 15 Pemberly</a>



Price: $2,980,000

Beds: 4

Baths: 4

Sq. Ft.: 4,473

$/Sq. Ft.: $666

Lot Size: 0.42 Acres

Year Built: 1992

Last Sale: $1,400,000 (09/08/1992)
 
It is actually much more then doubling.



Assuming a 20% down payment they made 5x their initial investment. Assuming a 10% down payment the made 10x and if they put 3% down they made over 30x their original investment.



So at 3% down on the first property on your list the owner could have put down 43k (3%) and sold for 1.43 million more then purchase price making a paltry 1.38 million.



**If it was zero down they made 1.43 million without investing a cent!!!
 
The big question is, will they sell? With the cheapest at $444 per sqft, it is still FAR overpriced fo the property. I bet these people ride down the market even worse.... I bet you a little bit of research ad you'll find that the home is a HELOC/second hell.



good luck

-bix
 
<a href="http://www.redfin.com/CA/Irvine/7-Bitterwood-92604/home/4688370"> 7 Bitterwood</a>



Price: $1,295,000

Beds: 4

Baths: 4

Sq. Ft.: 4,600

$/Sq. Ft.: $282

Lot Size: 6,780 Sq. Ft.

Year Built: 2005



Last Sale: $455,000 (06/06/2003)
 
<a href="http://www.redfin.com/CA/Irvine/44-Solstice-92602/home/5845355"> 44 Solstice</a>



Price: $1,169,000

Beds: 4

Baths: 3

Sq. Ft.: 3,250

$/Sq. Ft.: $360

Lot Size: 5,500 Sq. Ft.

Year Built: 2002

Last Sale: $569,500 (02/19/2002)
 
<a href="http://www.redfin.com/CA/Irvine/28-Maywood-92602/home/5772795"> 28 Maywood</a>



Price: $1,225,000

Beds: 4

Baths: 4

Sq. Ft.: 3,220

$/Sq. Ft.: $380

Lot Size: 5,546 Sq. Ft.

Year Built: 2000



Last Sale: $624,000 (03/15/2001)
 
<a href="http://www.redfin.com/CA/Irvine/27-Kernville-92602/home/5858624"> 27 Kernville</a>



Price: $1,345,000

Beds: 4

Baths: 3

Sq. Ft.: 3,650

$/Sq. Ft.: $368

Lot Size: 6,000 Sq. Ft.

Year Built: 2002



Last Sale: $641,500 (10/02/2002)
 
You haven't taken into consideration the last sale. I house like 15 Pemberly is more likely to have doubled its value since it was last purchased in 1992, whereas blue smt was only purchased in 2004 and so it is impossible to compare the two unless you take into consideration inflation, market trends, etc.



[edit] blackvault beat me to the punch
 
I wouldn't call it a horrid investment. It looks like a nice place to live. Their taste in decorations, however, I would call horrid.
 
[quote author="blackvault_cm" date=1223955914]Also...



Time Period

1992-2008 = 17 years.



Home Appreciation

2.98 / 1.4 = 112.8%

Avg. = 112.8/17 = 6.64%



Inflation

3.5% * 17 = 59.5%

Avg. = 59.5%/17 = 3.5%



Total Return = 6.64 - 3.5 = 3.14%



This is 3.14% not considering how much they put in, down payment (which I assume 20%) or what they put in AND its on the assumption they can sell for 666sq/ft.



I'd say its a horrid investment considering the possibilities.</blockquote>


Uhm, what? You need a place to live. Assuming that costs at minimum 3k a month for a fair size family, you have the tax write off on the mortgage for over 17 years, and you got to leverage your downpayment 5x over at 3.14%



Tell me where else I can leverage 5x with a guaranteed 3.14x?
 
1. Open hand

2. Place dollar bill in hand

3. Fold dollar bill over so both ends stick out the top

4. Close hand so it appears there are two dollar bills in there.



Works like magic...
 
<a href="http://www.redfin.com/CA/Tustin/10810-Turnleaf-Ln-92782/home/5856646"> 10810 Turnleaf Ln Tustin</a>



Price: $2,700,000

Beds: 5

Baths: 4

Sq. Ft.: 5,354

$/Sq. Ft.: $504

Year Built: 2002



Last Sale: $1,292,500 (12/16/2002)
 
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