Check out these two studies in contrast. About 5 miles due east of the previous houses this is Greentree Drive. In the lower right corner is 6350 Greentree. On the upper left, 6460 Greentree.
6350 W Greentree Dr
Price: $788,388
SQ. FT.: 2,376
YEAR BUILT: 1977
6460 W Greentree Dr
Price: $3,400,000
SQ. FT.: 7,900
YEAR BUILT: 1982
We've been through this before apparently.
8 comments:
SECOND!! ;-p
When I was looking for a house I drove up to the bank owned home. Anything under a million looks like a deal in this area. It is in serious need of being gutted and remodeled. Honestly it is a totally useless 3.x acres. In fact these properties are on such a steep hillside I would be afraid to live in them. Just walking down into the orchard would be dangerous.
I would say the first house is probably worth 600k and the second is probably worth 1.5 million. The second house is to steep for older folks and the traffic and distance from work for anyone with the income to afford it is just too far to be convenient. At least it is not in the school boundary for Rio Mesa, we all know what happens to kids that go there :{
WTH is that building halfway up the driveway? Special RV storage???
w,
I thought you might have looked at the first one. My equivalent is straight across the valley.
La Loma.
What's the financial breakdown on only 800 avocados?
At 4:15 PM, tj and the bear said...
WTH is that building halfway up the driveway? Special RV storage???Ummmmmmm... "income producing property?"
Ummmmmmm... "income producing property?"
Dare I ask???
Well I am not an expert on Avocados but 800 trees could be quite lucrative depending on how you see things. To me, if the place is paid for or a buyer does not need the avocados to make the mortgage they will be a nice little benefit.
Because costs are higher to manage a small ranch on a hillside lets say you could earn $2,000 a year after costs per acre on 8 acres (~100 trees an acre). So $16,000 a year, but maybe $30,000 a year if the trees are good producers. I assume they are Hass. As you know avocados are so random you really cannot know what they will return unless you see the books.
The big deal is that 800 trees should be easy to value at $200,000 to $250,000 for depreciation. Let's say you take them over 10 years you can cut your regular gross income $20,000-25,000 per year in the eyes of the government. As I understand it, it could be much better if you can get the property seller to value the trees much higher in the exchange. If the seller said they were selling you the trees for $1,000,000 you could use that with the IRS to cut your gross income $100,000 a year over ten years. Again, as I understand it the IRS will willing take that number as the seller (the free market) has the most incentive to keep the sales price of the trees down as they will be taxed as a capital gain, whereas the rest of the property get's the homeowner's exemption.
I am not an accountant but I play one one financial blogs!
Rob, I hope you noticed the walrus smiley in the first post.
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