New Listing - single-story home in Westminster (15421 Maryknoll St)
- Thread starter usctrojancpa
- Start date
NEW -> Contingent Buyer Assistance Program
So cap rate gets even lower as the denominator increases. A lot of work and risk to get the same return as Treasuries, or half what private credit is yielding these days.
sgip
Well-known member
Yes, the house will need a remodel of some sorts. Wall paper needs to come down. Flooring has to be replaced. Minor things here and there will need to be refreshed.
Lenders used to use a .3 rate for annual insurance, but most quotes came in at .15 to .20. Today, with major insurance companies leaving the state AND that this would be a rental, assume a .5 to .6 rate of coverage - all dependent upon the cost to rebuild and the size of the mortgage.
Don't know if the owner or the tenant will pay utilities, or if there is going to be a property manager, but those costs also have to be considered.
Finally, comparable homes are renting - per Redfin - in the $4,100 - $5,000 range. $5kpy is "toppy" but not un-possible....
Lenders used to use a .3 rate for annual insurance, but most quotes came in at .15 to .20. Today, with major insurance companies leaving the state AND that this would be a rental, assume a .5 to .6 rate of coverage - all dependent upon the cost to rebuild and the size of the mortgage.
Don't know if the owner or the tenant will pay utilities, or if there is going to be a property manager, but those costs also have to be considered.
Finally, comparable homes are renting - per Redfin - in the $4,100 - $5,000 range. $5kpy is "toppy" but not un-possible....
irviniteeee
Active member
I like that part of WM. Very convenient to coastal areas, Long Beach, and other parts of OC. I'm sure it'll get snatched in a second.
usctrojancpa
Well-known member
Got word earlier this afternoon from escrow that we closed today. The all cash sales price was $1,150,000 or $150,000 over the list price. Congrats to both the buyer and seller.
I do want to mention what did happen, the highest offer of $1,150,000 (initial offer of $1,050,000) was actually a financed buyer who was putting a little over 40% and the second highest offer was a $1,130,000 cash offer (initial offer of $1,078,000). When we were reviewing counters the seller asked me if I thought the cash buyer would be willing to match the $1,150,000 offered by the financed buyer. I told her there would be high probability because the cash buyer's agent was constantly following up with me and her buyer went to see the home 4 times (including at the open house). So I called the cash buyer's agent and told her the highest price is $1,150,000 and if her buyer was willing to match that price the seller would go with her client (seller did allow me to send the financed buyer's counter to her). Within an hour she came back to me telling me that her client will do $1,140,000 because they were all cash....I laughed and told her this is not a negotiation, it's a take it or leave it and the only reason she client got a chance to match the highest price was because they were all cash....NO CASH DISCOUNTS! A few hours after that conversation, she sends me an updated buyer counter from her client for $1,150,000.
I do want to mention what did happen, the highest offer of $1,150,000 (initial offer of $1,050,000) was actually a financed buyer who was putting a little over 40% and the second highest offer was a $1,130,000 cash offer (initial offer of $1,078,000). When we were reviewing counters the seller asked me if I thought the cash buyer would be willing to match the $1,150,000 offered by the financed buyer. I told her there would be high probability because the cash buyer's agent was constantly following up with me and her buyer went to see the home 4 times (including at the open house). So I called the cash buyer's agent and told her the highest price is $1,150,000 and if her buyer was willing to match that price the seller would go with her client (seller did allow me to send the financed buyer's counter to her). Within an hour she came back to me telling me that her client will do $1,140,000 because they were all cash....I laughed and told her this is not a negotiation, it's a take it or leave it and the only reason she client got a chance to match the highest price was because they were all cash....NO CASH DISCOUNTS! A few hours after that conversation, she sends me an updated buyer counter from her client for $1,150,000.