What's $880K between friends--2152 Pacific Avenue, Alameda, CA
It takes a special kind of chutzpah to list a home for more than twice its previous price when that last transaction occurred just over two years ago. 2152 Pacific Avenue (MLS #40340522) just showed up on the market listed at $1,570,000, or $523 / sqft (aka way too much):
Yes, replacing a foundation is very expensive, and building "fabulous" kitchens and all the rest isn't cheap, but one has to wonder what kind of a Wunderrenovator creates $880,000 worth of value in 27 months (that's over $30K a month). One also wonders how a $1.57M triplex is ever expected to be cashflow positive when a 90% LTV loan at 6.5% interest comes out to about $9,000 a month.
Update 5/4/08: My, oh my, it's a HGTV special floating-sink-travertine-granite extravaganza. They must be trying to grab the high-end rental market, which as we all know is simply booming in Alameda. Or maybe they're trying to appeal to the incredible pent-up demand from buyers who are waiting the market out and want to rent it style. Or something.
Remarkable remodeled central alameda triplex. Suitable for owner occupants. Fabulous kitchens, bathrooms, floors, paint & light fixtures. Elegant kitchen & bathroom tile. Foundation replaced in 2007. Lots of updated electrical & plumbing. Separate gas, electric and water meters.
The previous transaction closed in January, 2006 for $690,000:
SQFT: 3000 Lot Size: 0.14 Building Description: Total Units:3
Unit 1 Bedrooms:3
Unit 2 Bedrooms:4
Unit 3 Bedrooms:1
Yes, replacing a foundation is very expensive, and building "fabulous" kitchens and all the rest isn't cheap, but one has to wonder what kind of a Wunderrenovator creates $880,000 worth of value in 27 months (that's over $30K a month). One also wonders how a $1.57M triplex is ever expected to be cashflow positive when a 90% LTV loan at 6.5% interest comes out to about $9,000 a month.
Update 5/4/08: My, oh my, it's a HGTV special floating-sink-travertine-granite extravaganza. They must be trying to grab the high-end rental market, which as we all know is simply booming in Alameda. Or maybe they're trying to appeal to the incredible pent-up demand from buyers who are waiting the market out and want to rent it style. Or something.
I'm curious about the stereo toilets in the last picture. Bidets don't usually come with lids, so maybe it's a child-sized toilet. Perfect for all those high-end renters with small kids who don't already own a home, or maybe got foreclosed upon and can afford the rent needed to make this a great, cashflow-positive investment.
Update 11/2/08: Zillow and the listing agent still have it for sale for the original $1.57M price.
Update 11/2/08: Zillow and the listing agent still have it for sale for the original $1.57M price.
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