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Thread summary:

Florida real estate investment opportunities, seller auctioning off WPB house, seeking information on how much to bid, seller paid 440K one year ago

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Old 02-10-2007, 08:51 PM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 13,726,219 times
Reputation: 1026

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Interesting opportunity, a desperate seller is auctioning a WPB house. Bid how much? I was thinking between $250k and $275k and my parents would be the ones buying the house. The seller had paid $440k for it just over a year ago and is now taking a big loss as property values have gone way down in FL. The seller wants mid $300s asking price takes it or auction to the highest bidder. The house is 3/2.5/2 and about 2900 total, 2300 living square feet. Its waterfront by a lake. House has marble floors and granite counters in bathroom and kitchen. Guarded gated community of 500k+ houses. Taxes and HOA will be about $11k a year and thats without hurricane insurance(price too high) Theres some uses for that house.

1. My parents can move to this house, literally just a mile from this current house. Downsizing will leave them with lots of equity as their current house is worth mid $600s, but my dad thinks he can get alot more than that. They wont be saving any on taxes/hoa but the equity will grow as my parents can invest this into stocks and funds which appreciate while houses are depreciating for the next 2 years.
2. The other option is we can rent it out for a small profit after paying taxes and HOA and landlord insurance in case the tenent trashes the house, the insurance will cover it.
3. I can live in that house rather than let it sit empty. It will be a good learning experience for me and my parents prefer I live close to them the first few years so they can be in close contact with me.
4. Me and my parents know we will lose money on this house but the loss is going to be half of what rent will be(sorry Murphy) If we bid $275k for it and get the house at that price, it will be worth that much once the market bottoms out. Then the market will go back up slowly at 3-5% a year so itll be several years before we can resell this house at a break even point. The taxes and HOA will be a loss to the tune of $11k a year(and we take the hurricane risk) but renting a house like that would cost about $22k a year. My parents and I can split the HOA and property taxes so we each pay only $5500 a year, that comes out to under $500 a month for each. Beats paying almost $2k a month to rent a house like that, even 1 bedroom condos are almost $1k a month to rent! This is why I know rent is a very bad deal. People would be much better off buying a house and reselling it even if it means breaking even because the taxes/hoa/insurance(if you choose so) is much less than the rent!
5. Is it still worth bidding $275k or should we only bid up to $250k and have a much lower chance of winning it for that price? The loss would be too great above $275k bid to bother going higher.
6. Thanks for reading this long, interesting post. If you have nothing good to say, dont post it. PM me if you have to rant but dont crap in my thread, take all rants to PMs.
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Old 02-10-2007, 08:59 PM
 
Location: Living in Paradise
5,701 posts, read 23,499,661 times
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I would not bit in this home. Taxes are way high, HOI is also high and a plan never execute as planned. My best advise....
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Old 02-10-2007, 09:13 PM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 13,726,219 times
Reputation: 1026
Quote:
Originally Posted by sunrico90 View Post
I would not bit in this home. Taxes are way high, HOI is also high and a plan never execute as planned. My best advise....

Not even $250k? The taxes and HOA are actually normal, this is a guarded gated community and the HOA includes many other services. High taxes is because its Florida!
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Old 02-10-2007, 09:18 PM
 
Location: PA
669 posts, read 3,120,012 times
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Guarded communities tend to attract crime because of the signs of having things in your home, etc.

True Florida has high taxes but you might get a better deal further north in FL?

If you want this house, I'd say YOU should live in it. Close to home and no foreign surroundings.
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Old 02-10-2007, 09:24 PM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 13,726,219 times
Reputation: 1026
Well I hope the guard does a good job of denying entry to anyone unauthorised. I would feel safer in a guarded gated community than without any security. I could get a better deal in PSL than WPB yes. Theres a 20% chance we will get this house for our $275k bid
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Old 02-10-2007, 09:37 PM
 
Location: NE Florida
17,833 posts, read 32,103,130 times
Reputation: 43376
"The seller had paid $440k for it just over a year ago and is now taking a big loss as property values have gone way down in FL. The seller wants mid $300s asking price takes it or auction to the highest bidder."

If he put 20% down that would mean he owes in the $350k range
if that is the case there is no way he would be able to accept a $275k bid unless he wants to pay the difference to the mortgage co.
Most auction have min bids. I would bet his is the mortgage balance.

One thing I have always found funny about gated communities is that unless they have very high walls with some kind of deterrent folks can get in if they want. Also I have friends that live in guard gated communities and they say most of the "crime" issues they see are from the "bored" kids that live there.

I have to chuckle when I see the condos near where we live, they are gated but all you have to do is walk from the sidewalk around the lake and your in.

Last edited by FLPL75; 02-10-2007 at 09:47 PM..
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Old 02-10-2007, 09:43 PM
 
Location: So. Dak.
13,495 posts, read 36,241,004 times
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NAH, you asked for opinions and mine is a definite "NO". Have your parents ever considered the possibility of finding a 55 plus condo or townhouse near to where they live now? I just visited the real estate site and saw a lot of nice condos for under 125,000. Since you don't qualify for a place like that, would they consider moving and let you stay in the home you share now?
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Old 02-10-2007, 09:51 PM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 13,726,219 times
Reputation: 1026
I dont know the story, if I had to guess maybe he is a speculator who bought at the peak and is selling now before prices drop further. Or maybe his job wants him to relocate and house prices have gone down so he has to take a loss or be out of a job if he refuses to relocate. Thats one thing I hate about jobs and love being self employed.

My parents already made it clear they are not interested in condos, especially not 55+ I told them this long ago.

By the way Jammie, if you want to move to FL, wait for house prices to bottom out then youll be able to afford one Or if you can get a house in 2007 at rock bottom prices thatll work too
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Old 02-10-2007, 10:53 PM
 
Location: So. Dak.
13,495 posts, read 36,241,004 times
Reputation: 15195
Thanks Nah, we won't be able to move until my husband is 62 so it'll be the beginning of 2008. He has a county job and wants to stay until he's 62 so he'll get a bit better state pension and I agree with him. I don't think we're interested in buying a house. If we buy anything, it'd be a 55 plus condo, but renting an apartment actually seems to be a better option for us at this point. It just seems that insurance is so high down there and if something happens, you have to pay so much out of the pocket to do the repairs. We just feel that you end up throwing so much money away for insurance, taxes, upkeep, HOA fees, out of pocket expenses if there's damage, etc. We have had the opportunity to own our own house so it's no longer at the top of our list for things we want out of life. We're actually interested in the apartments that seem almost like a chain there since the same company owns and manages so many of them in a lot of Florida. Their rent is actually quite comparable to rent up here, which is surprising. I guess eventually we'll all be settled and have everything found that we're looking for. Good luck if you decide on bidding on that house.
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Old 02-11-2007, 02:46 AM
 
Location: FL
1,316 posts, read 5,654,186 times
Reputation: 986
There is NO WAY that house is going to be 275!!! You're dreaming!!! It would be a steal at 350!!! It will sell for at least that!
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