Wednesday, September 02, 2009

Cap Rate? What Cap Rate?

Welcome investors. $244,950. Yup, 19x annual rent (or 223x monthly). That is if you can rent them. Vacant for months and otice the recent rent drop on the sign. What is the seller smoking asking $250/sf?


1.44MB said...

Is this another lost soul in Wrightwood? Must be a lot of 'investment' homoaners there looking west and chanting 'burn baby burn'.

Rob Dawg said...

Wrightwood it is. Went up last weekend. Utterly amazing. Realtor dot com says ~100 for sale. Easily 300 for sale or in process of foreclosure.

DQ says 4 selling per month. Years of inventory.

Cobradriver said...


I have been following the same area for about 2 years. I log the MLS inventory numbers every Sunday for various price points. It is really odd how that when inventories cross 16K for the area on Monday they are back to sub 15K. Heck one week they dropped to 13K. I know we didn't sell all those.

I will say what was taking 2-3 weeks to build back up is happening in days now. Sundays sub 50K was down to 280 listings after the reset. As of right now 309.

The realtor I know is selling under 100K like hotcakes. Over 100,not so much. Over 200K? Totally dead.


Rob Dawg said...

Is your (my mom's) area also seeing what I see in Wrightwood? By that I mean pocket listings, empty waiting for the market to turn properties, FSBO, etc? All kinds of houses available to buy that aren't counted as being for sale.

Cobradriver said...


There are at least as many empties with no action as there are listings. Not to mention delusional prices. It is pretty wild to watch the market move from Cape Coral to Port Charlotte and then on to Sarasota.

Like it has been said before,the higher priced stuff just held out/on longer.

In some of the nicer areas you can find 20%+ of homes with back taxes due. I keep telling people we are headed to 95-99 prices with a discount thrown in for the huge run up in taxes down here.

One thing I will say is that the crap that was empty 2 years ago is finally getting tossed on the market. The problem is that the new empties are exceeding that rate by a large margin...

I don't know how many listing you have followed but my ~45 that I tracked from NOD until the bank found a buyer has been running right at 2.5 YEARS.

You coming down your moms way anytime soon???


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Lost Cause said...

I know what you are doing... it will be beach front property right next to the San Andres fault, right after the big one.

Rob Dawg said...

It is actually about 50 fet on the north american side. You got me.