Two of the strangest little projects in the NW finally received NODs today.
Mayberry Villas is a Homercraft’s project at McCarran (busy street) and Mayberry (pretty busy). Half million dollar duets aimed at I’m not sure just whom. Rich lock-and-leave Californian retirees, I guess. Sketchy location, sketchy market, beautifully executed as are all Homercraft’s projects. I think 6 of the 24 units have been constructed, and the foundations for the rest have been poured. NODs for $2,700,000 and $3,500,000 were filed based on missed May payments. As much as I could never figure out how this project had a chance to succeed, I really can’t fathom what will become of it in foreclosure.
Upstream is literally Rancho San Rafael on the River – same developer, same basic unit design. It is located on Dickerson near Ox Bow Nature Area, one of the oddest little pocket of the City, if you ever took my Northwest Side Story road-trip tour, you would know what I’m talking about. I think 5 of the units sold original 10 units sold, so they plowed ahead with 8 more that are going splat in the noonday sun. Upstream was always a weird little project, but I like weird, and there are some pretty amazing improvements to the area in the Reno planning pipeline. None of the "prime" lots on the river have been developed yet, though they have been marketed for a couple years. $7,950,000 NOD from a missed February payment. I’m incredulous that they held on that long.
I actually applaud these tow projects for their risk taking. Both were really thinking out of the box, and would have been game-changers for their neighborhoods if they had succeeded. But sometimes the box is there for good reasons.
Holcomb Townhouse are indeed listed starting at $159,900. "Reserve your today!" Extraordinarily weak marketing plan for what will be a troubled effort. How would you have handled this one?
Derrick, I’ve got 489- (and 322- ) profiled. Very interesting decisions, and ones that might be worthy of a post – it would certainly generate comments! If you want to give permission and give me your input, email me. Contact link is with my head shot at the bottom of the page. Despite the crap you flick my way on occasion, I have always valued your voice and perspective here. Up for an autopsy, big fella?
Reno Ignoramus
Mike, You ask what was the business/marketing plan of Mayberry Villas? Perhaps the passage of time has fogged your memory of the bubble frenzy a bit. Business plan? Marketing plan?
Simple: flash back to the great heady days of the bubble, when every developer was a genius and every realtor was a star. When everybody knew you could never lose money on a house in Reno, because everybody wants to live here, and because it’s different here, because Reno is a hidden gem in the Sierras, and they aern’t making any more land here, and you better buy now or get priced out forever, because rich California retirees will come here and prop up the Reno market for decades to come. Yes, step right up and get your Voodoo loan from some “mortgage expert” who was selling cell phones at the mall last month, and don’t worry about the payment after the teaser rate expires because you can refinance next year after your house has gone up 15% from what you just paid.
That was the business plan, Mike. How could you have forgotten so soon?
Perry
I would have titled this post, “All the right projects in all the wrong places for all the wrong prices.”
I actually know someone who bought at Upstream on the river. Try as I might to talk them out of it they plowed ahead.
So what’s to become of these projects? Do they all drop the prices so low they are picked up by investors becoming apartment complexes? It seems their only hope is to give away what’s left of the projects to developers. I do mean give away as in free.
With so few owners in these developments I don’t know how the HOAs will surive. The basics won’t even be covered. Something tells me the bank won’t be paying Waste Management.
Free Falling
Mayberry Villas was a real surprise from Homecrafters. This would have been a great site for an extension of the retail village on the south side of the street. (Not that Reno will need any new retail any time soon.) Why Homecrafters would build high end townhomes on a site that busy was a puzzle. Equally puzzling is why Ribeiro would have built Quail NW II commercial plaza in the hollow west of Robb and south of Mae Anne. That would have been a great site for some nice townhomes but is a lousy site for commercial.
As RI said, in the froth of the bubble, developers were cranking out their product on any site they could find. Did I mention Lennar’s attempt to build townhomes on the site east of the Fire Station at the gates of Somersett. Why Lennar broke ground 18 months after the market was finished made no sense. Not sure who financed that mistake.
Happy New Year.
Mike – For another story of bad things happening to good people, you might look at 1745 Dakota Ridge. This McCaffrey home was listed for about $1.3 M in late 2005. Construction completed in spring 2006 and just sold for $550 k. Assuming $1.0 M development cost to McCaffrey ($300 k projected profit), they lost $450 k plus four years carry (say $200 k), for a net loss of $650 k. Ouch.
The bursting market bubble has peen punishing for all but the non participants. It will be quite a while before we see any spec building in Reno. There may be thousands of serviced lots, but don’t expect any building boom in the next six years.
My projection for Dec 2010 Median – $195 k. Even with the spring wave of foreclosures about to hit the market, supply continues to dry up. At current $175 k median price, homes pencil as rental properties. With credit shot for five years, there are plenty of renters in the market to soak up the rental inventory. Why rent an apartment if you can rent someone else’s shattered dream for not much more….
Irv
But Mr. Free Falling, don’t all those renters have to work somewhere? Surely there won’t be a wave of retirees coming in to rent the modest townhomes, apartments and small houses.
I visualize more hotel closings, no new hirings by other employers — other than replacing natural attrition — and more small business closings.
Without an injection of new industry and commerce, the area is headed downhill for the next two or three years, sorry to say. Population will most probably decline over the next two years, and I feel that it will be the working folks from the hotel and distribution centers who will be leaving. Those are your renters of these apartments, townhomes and modest houses.
BanteringBear
Free Falling posted:
“Even with the spring wave of foreclosures about to hit the market, supply continues to dry up. At current $175 k median price, homes pencil as rental properties. With credit shot for five years, there are plenty of renters in the market to soak up the rental inventory. Why rent an apartment if you can rent someone else’s shattered dream for not much more….”
Your post was spot on until you typed this. It couldn’t be further from the truth. I’ve spent a bit of time in Reno, recently, and the shadow inventory is MASSIVE. One can drive around any neighborhood, write down numerous addresses of empty homes, and then search the local mls and they are not listed. In fact, it seems more homes are NOT listed, than are. Furthermore, Del Webb is building out Sierra Canyon, and there are other projects forging ahead, too, increasing supply. Factor in the reality that Nevada is now losing population, and you’ve got the perfect storm for even lower prices.
Derrick
Mike-
Feel free to show the 4893 and 3225. I’m interested to see what some posters think. Ofcourse there is always more info than just what the records show, so I will be willing to clarify anything if needed.
just try not to make every aspect of my life completely public! lol
happy new year!
BanteringBear
So, Derrick sold a house that mommy gave him and bought a condo? Yawn…
Derrick
Actually BB you are mistaken. but thanks for being an A**hole!
smarten
Thanks for the invite Derrick [or Big Baby, or TOW, or???].
So let’s take 3225 first [I’m maintaining your privacy as to the street name, but I will say it’s located in Sparks and it’s a stucco SFR]. Public records show you purchased this home in 2003 for roughly $269K, and you sold it this month for $229K. On previous posts you stated you paid all cash [so no mortgage], and you put out an additional $50K out-of-pocket in improvements [like landscaping and Brazilian cherry wood flooring (as I recall)]. So please give me the spin on this apparent $90K loss?
I know you purchased a condo this month as your new personal residence, but why sell the SFR at a loss [especially with very little in carrying costs]? Did you need the money [even though you told us you didn’t and you were sitting on $350K cash after your purchase]? And why downgrade from a Sparks SFR to a Sparks condo?
Okay, now let’s get to 4893 [again I’m hiding the street name for your privacy concerns]. This is a[nother] Sparks stucco housing unit [here a condo] that you purchased for $145K – what you refer to as “the sweet spot” insofar as Sparks condo pricing is concerned. Apparently your seller overpaid for this puppy in 2006 [$345K or thereabouts as I recall]. So I can’t criticize you price drop wise for your purchase [although aren’t you one of those predicting another 30% or so price drop – especially for a purchase price that is basically twice the median, but it was far from the “sweet spot” price for a Sparks condo.
So you criticize me for purchasing a more expensive SFR in Incline Village that was close to the median, yet infer you’re going to be immune from the large percentage drop in value you’ve predicted for me for your less expensive Sparks condo? Makes no sense Derrick.
Now for the trifecta insofar as your story is concerned. Your listing agent was someone from the Keller-Williams agency [again withholding the name for your/her privacy concerns]. Don’t know who your sales agent was but I’m guessing NOT Guy. Now weren’t you the one who several years ago bestowed praise after praise after praise on Diane and Guy testifying that if you ever again purchased real estate, one or the other would definitely be your agent? What happened Derrick?
Yes, please clear up the questions.
And as to the rest of the blog, Happy New Years!
DownButNotOut
I goes without saying shadow inventory and jobs in this area are going to be the biggest hurdle in getting the area Real Estate back on track.
Other than driving around, which admittedly shows a lot of houses empty that aren’t even close to going on the market,is there a more precise way of showing the current real number of greater Reno area bank owned properties, whether up front or shadow, and tracking this? Following this number would be valuable information in calling a trend.
Obviously developers would be foolish to build if inventory is going to constantly be released by banks below building costs for the next four years. I just would wonder how big that inventory really is.
2 years? 5 years? If so how far are banks actually putting off a recovery?
BanteringBear
I’m going to really go out on a limb here, and speculate that the “Stucco Oracle” isn’t the wealth machine he portrays himself to be. This transaction makes zero financial sense if the information he’s been feeding the blog over the years is, in fact, true. Of course, I never believed much of his tripe anyway. Empty suit…
Reno Ignoramus
Hey Bear and Smarten:
It was April 28, 2007, under Diane’s thread “Treats, Tidbits and Links Galore” that Derrick laid out in detial all his real estate killings.
One thing about a blog……what you say stays there forever, and sure as hell somebody will remember it.
smarten
Hey RI, how the heck do you find something like that on this blog? Although it may stay “forever,” it’s not like there’s a search engine for blog comments; is there?
bob c
i really wanted to use guy as my agent, but a family commitment pushed me in another direction
and i probably have the most attractive agent in reno (hope she doesn’t read this blog),she’s
getting the job done and she’s a nice person—
i hope her career really takes off
i would have liked to find a distressed property in historic reno (a deal), but the inventory in the newlands area is quite small, i don’t want to be a renter and my sale went so well in san jose that i can afford to give up a few % to the shark of a seller i’m dealing with here in reno
(the seller prob is one of you guys—-he carried
the paper and foreclosed on the property i am negotiating to buy—–i wanna hard ball him, but he seems just arrogant enough to take more loss than lose the battle of the wills w/ me)
reading this blog is still part of my internet rituals, even though i found a home
i can’t give any more details, but i want to wish
you all a great new year
bob c
maybe i will never give all the details, because i might not feel like being torn to shreds…..
Derrick
smarten if you look at comparable sales in the same development, you will see that my condo is STILL the best deal so far.
Also! the major difference between my condo and your house investment wise is that my condo will EASILY cash flow. your house? I wouldn’t bet on it!
Derrick
The cono was not purchased to be my main residence for a LONG time. it is more likely to be temporary (2-3) years, at which point we will rent it out for a handsome fee. In turn we will be looking at properties back in NAPLES FL.
We would like to move back but are willing to wait a few years to do so.
Yes we did lose money on the house, but then again that house always needed something to be fixed! The roof needed some replacement, hot water heater was toast, windows needed to be replaced. It is STILL a beautiful house! but with our lifestyle a condo made much more sense.
We travel a lot, and plan to do so even more in the coming years. with Asia, europe, fiji, and others that we are already planning.
The house didn’t give us much flexibility when it came to traveling.
BB I don’t really care what you believe or what I have said in the past. I have laid it ALL on the line with this blog! which is more than many can say INCLUDING you!
maybe you should be thankful im willing to let my personal information be published for the good of this blog? Afterall you LIVE HERE!
Sully
bob c; the only ‘caveat’ is that you are not comparing the price you are paying for Reno to a similar house in San Jose. It’s not apples to apples.
I intended to rent from the outset, in order to get myself localized. Also, I knew where we were in the downturn process. So, unless the price you’re paying is a far cry from 2005 – 06 prices, then I would think twice about moving too fast.
Also, I was able to keep almost all of the sales money (house was 2 payments from end of 30 yr loan) and had a good size house fund. I still have about 2/3 left for another one! In short, I’m glad I rented for two miserable years (under landing path) as it payed off very well.
smarten
Derrick, originally you told us “of course there is always more info than just what the records show, so I will be willing to clarify anything if needed.” So what’s not accurate about what the records show? Nuts and bolts wise, what needs to be clarified?
I told you I couldn’t criticize your condo purchase based upon the raw numbers other than the fact that whatever those numbers were, they were still at least twice the Sparks condo median; and, you felt prices were still coming down another 30% or so. So why sell the house you didn’t need to sell [it would cash flow as a rental (since you long to become a landlord)] in order to double down on real estate you believe is going to depreciate in value in the short term? It makes no sense.
I didn’t make my purchase as an investment nor to cash flow as a rental. The sad thing you don’t realize is neither did you! If you think you’re going to be able to rent out your Sparks condo in 2-3 years with no vacancy factor for “a handsome fee,” you’re dreaming. What do you think you’re going to be able to secure in rent when a former $500K SFR in Arrowcreek rents out for $1,200/month? And after $200+/month in property taxes; $20/month in insurance [assuming the HOA carries a master policy]; and another $150-$200/month in HOA dues; there isn’t a whole lot left over to offer a “handsome return;” especially given your definition of handsome.
MikeZ
RE: “purchased in 2003 for $319K, sold in 2009 for $229K”
Congrats, Derrick. I assume you wanted to get rid of $100K in excess wealth. Mission accomplished.
MikeZ
RE: “Derrick, I’ve got 489- (and 322- ) profiled. Up for an autopsy, big fella?”
RE: “Feel free to show the 4893 and 3225”
You’ve got the green light, Mike McG … let’s see the toxicology report. 🙂
Mike McGonagle
Derrick, thanks for playing along. I would have chimed in earlier, but I got “Chartered” – no phone or internet for the last 2 days.
The “facts” on 3225 Palacio. Purchased for $269,500 in October 2003, and sold for $229,000 in December 2009. Original sale of $182,500 in January 1999. My recollection of your posts is that you put “equivalent” to $50,000 in improvements into the place, but a lot of it was sweat equity, and it looks like you did a nice job based on the pictures in the MLS listing: http://nnrmls.fnismls.com/publink/default.aspx?GUID=58799f48-54af-468f-bafd-cf981125592d&Report=Yes (ignore JoAnn’s head shot, it is just how I see MLS listings in default for whatever reason, and I don’t have any reason to believe she was involved in the deal).
4873 Bougainvillea. Purchased for $142,000 in November. Purchased new in October 2006 for $328,495. Condo in name only. 46.5% of original price. http://montagebuyer.wordpress.com/files/2010/01/4893.jpg I only publish the address so people can search the comps – you made a good deal, D, though I do question the cash-flow positive assertion based on a 20% down and 80% financed deal. Close, though.
First, glad it was a travel issue, and not a division of assets deal.
Second, you bring up an important issue about the generic “stucco shit-box”. The quality of construction can be truly third world and a money pit moving forward.
Lastly, the implicit belief that the below median market has somewhat stabilized, while your former above median home has not. It takes a lot of moxie to cut bait and move on. My gut is that you could have done $10K better on your sale in this market, but that’s chump change when you have charted a new path and want to move on.
Note to haters: Derrick closed for cash prior to the closing of his existing home. Could you do that?
GrandWazoo
Mike, if the CIA is hiring, you need to look them up. Epic, just epic footwork on this, as well as the Mayberry fiasco.
Martin
So, Derrick lost about a hundred grand on his house. Hardly unusual in this current market, but noteworthy from the guy who boasted how his house was worth well over $300K when he called BB a sour renter.
So, Derrick bought a condo for 46.5% of bubble pricing in ’06. Again, hardly unusual in this market. This blog has referenced numerous instances of similar deals.
So, I really am puzzled about what is so noteworthy about all this. This seems actually totally unremarkable on both the sell and buy side. Is the interest just because it is Derrick?
Carleton
I am a fairly new reader of the blog, about the last year or so. I certainly don’t have the history with the blog like RI, BB, Smarten, Wazoo and others. So I too am curious why the info on Derrick’s dealings is of interest. I appreciate his willingness to come forward and allow this info to be made public, but what’s so notewrothy about it? Surely many many people have lost 100K on selling a house in the last few years. And surely many many people have bought (especially a condo) at half off bubble pricing in the last 12 months.
Derrick
“Note to haters: Derrick closed for cash prior to the closing of his existing home. Could you do that?”
not many I would think mike. I appreciate the props though 🙂
have a prosperous new year! (couldn’t be much worse than 09′)
p.s.
The wife and I will be in Key west visiting my father for the next 2 weeks. Sorry I won’t be around to be kicked in the face ! lol
Derrick
Martin said :
“So, Derrick lost about a hundred grand on his house. Hardly unusual in this current market, but noteworthy from the guy who boasted how his house was worth well over $300K when he called BB a sour renter.
So, Derrick bought a condo for 46.5% of bubble pricing in ‘06. Again, hardly unusual in this market. This blog has referenced numerous instances of similar deals.
So, I really am puzzled about what is so noteworthy about all this. This seems actually totally unremarkable on both the sell and buy side. Is the interest just because it is Derrick?”
I think you along with some other readers have completely missed the point. What IS interesting is the combination of transactions.
1> Selling a larger house
2> buying a smaller house/condo
This is the NEW trend in housing today! people are downsizing more and more. higher end homes are STILL dying on the vine, and this market isn’t really producing any move up buyers.
THATS THE POINT
Geiser
No disrespect to Derrick, but buying a condo today for 50% of what it sold for in 2006 is a no-brainer. A chimpanzee could do that in this current condo market. In fact, my nephew, who is about as smart as a chimpanzee, just bought a Fallen Leaf condo for 50% off of its 2006 selling price.
Ralph
The MLS is full of condos selling for 50% off of 2005-2006 prices. They are a dime a dozen.
The trend toward smaller houses is pretty well known at this point. I think every major publication in the country has run an article about that in the last 6 months or so.
BanteringBear
What’s noteworthy about these transactions is that the narcissistic, deluded loudmouth of the blog with a penchant for portraying himself as some financial genius, who force fed the readers endless boring accounts of what a great buy his house was and how much it was worth, and screamed that median prices would “never” fall below $250k, took a bath to the tune of nearly $100k, and then decided to latch onto another depreciating asset in time to lose, perhaps, another $50k. Sweet.
bob c
Hafta agree about reno condos—with the HOA’s and property taxes condos there isn’t that much left for the principle——-same with some of the mcmansions (upkeep and taxes)
and they are so readily duplicate-able
MikeZ
18 mos ago:
https://renorealtyblog.wpengine.com/2008/07/reno-sparks-real-estate-market-update-8.html
derrick said,
in July 9th, 2008 at 3:47 pm
3225 palacio ct? I hate to burst all your bubbles, but first off thats not even my House! I would be the first to admit if I had my house or any of my properties listed on the market. So you guys really need to take some medication lmfao
What’s really curious is why Mike McGonagle covered for him:
GreenNV said,
in July 9th, 2008 at 4:28 pm
3225 Palacio:
Purchased 10/23/03 for $269,500 by Linda M. Heegard. She subsequently purchased 8081 Tres Arroyos 6/26/07 for $688,000 with co-owner Joel E. George. Research is easy, guys. Do your homework before pointing fingers. Just because a listing has Brazilian cherry floors, pavers, and a pretentious Beamer parked in the driveway doesn’t make it Derrick’s abode.
smarten
MikeZ, when it comes to our friend Derrick you have to remember, as he cautioned us: “Of course there is always more info than just what the records show.”
Linda M. Heegard is Derrick’s mother. In 2007 [if not before] she wasn’t living in the Palacio SFR – because on November 5, 2007, she recorded a Declaration of Homestead declaring the Tres Arroyos SFR to be her principle residence.
On July 27, 2009 Derrick came out of stealth mode when his mother transferred title to Palacio to her son – no real property transfer taxes were assessed because of exemption 5 [transfers between parents and children (you can also go to the County’s history of assessed data, see the transfer for $0.00 and in the note section, see the explanation of conveyance to her son)].
Then in December of last year [remember, it’s 2010] Derrick [and not his mother] sold Palacio.
So when Derrick asserted in July of 2008 that he did not [legally] own Palacio, the statement may have been literally accurate [“I did not have sexual relations with that woman”]. But in-truth-and-in-fact it wasn’t. As we see he held equitable title [“it depends upon what is, is”], and his mother was living somewhere else.
Now getting back to Derrick. Since he has invited us to ask questions so he can clarify, I have a question. Was Palacio a gift from mom? Or did you really come up with the money on October 21, 2003 and place title in your mom’s name [maybe to protect yourself]?
Let’s assume it was a gift – one with no mortgage [don’t we all remember Derrick’s boasting how he was a 28 year old kid who owned his own home in Sparks free and clear of mortgages?]. So even though he may have taken a $100K loss on the purchase/resale, at COE [for Palacio] he had over $200K cash. And then he turns around and purchases Bougainvellea for only $142K [no mortgage]. What’s so impressive?
Or to restate the question, how many of us could pay $142K, all cash, for a property after our parents had given us $229K? Me thinks A LOT of us!
BanteringBear
Smarten posted:
“So even though he may have taken a $100K loss on the purchase/resale, at COE [for Palacio] he had over $200K cash. And then he turns around and purchases Bougainvellea for only $142K [no mortgage]. What’s so impressive?
Or to restate the question, how many of us could pay $142K, all cash, for a property after our parents had given us $229K? Me thinks A LOT of us!”
Exactly. There is NOTHING impressive about this. Snot nosed kids running around bragging about mommy and daddy’s money, as if they had some sort of hand in the wealth building, is nothing new. Old money is easy money- you’re born into it. What’s impressive is picking yourself up off the pavement, and blooming, when you were born with nothing. Interestingly, you don’t hear a lot about the latter, because these people aren’t blathering on and on about their own perceived financial prowess to complete strangers, as they aren’t suffering from insecurity due to a blatantly obvious lack of talent and class.
SkrapGuy
Some of the old timers on ths blog will recall that Derrick bragged that his family owned a business that was sold for a substantial profit a few years ago, and that he was a man of independent means. Then at other times he would post about how hard working he was in the EE business. Recall when Mike Z called him out about this and inquired about his professional affiliations? Derrick never responded to Mike Z. Derrick put up so much contracdictory nonsense about himself in a lame effort to impress that I at one time commented there must be two Derricks. One was the affluent guy short selling commodity futures for big profits and bragging about it on this blog, and the other was the hard working guy from upstate New York.
I agree with the 4 or 5 comments to the effect that there is absolutley nothing the least bit impressive, or notweworthy about any of what Derrick has done here. He lost $100K selling his stucco box. This is impresive why? This is noteworthy why? He bought a condo with a loan for a price 50% off of the bubble frenzied most recent sale. As Geiser points out, a chimpanzee can do that today. This is impressive why?
Martin is right in that if it wasnt Derrick these transactions would be so unremarkable as to warrant no attention.
Maybe Mike was looking to run up the number of comments on the blog. I guess he accomplished that.
derrick
Actually smarten I closed on the condo with CASH BEFORE the house sold.
derrick
smarten-
The palacio house was infact a gift. the condo however I purchased with money I had saved over the past few years.
smarten said:
“So even though he may have taken a $100K loss on the purchase/resale, at COE [for Palacio] he had over $200K cash. And then he turns around and purchases Bougainvellea for only $142K [no mortgage]. What’s so impressive?”
I purchased the condo BEFORE I sold the house NOT after. I also paid CASH.
Reno Ignoramus
Mike I suspect there are some readers of this blog who could easily buy for cash another residence before selling the one they live in now. Especially if you are only talking about $142K. I think you might be surprised. This is a fairly upscale blog, as you know. Remember a couple of years ago when Diane announced that some blog analysis company had studied the level of commentary here and determined that discourse on this blog was equivalent to the Ph.D level?
I believe there are some highly educated and fairly affluent people who read this blog.
bob_c
if one had a million and lost 858K, they could purchase a 142K home with cash
bob_c
there is no doubt that real estate market has stabilized (just as all asset classes have seen
a rebound), but the age old question is where do we go from here? this recession feels very different from the early 80’s, early 90’s and nasdaq crash of 2000—-i don’t have a clue how this will resolve itself, but life goes on and you have to smell the roses sometimes
BanteringBear
bob_c posted:
“…there is no doubt that real estate market has stabilized (just as all asset classes have seen
a rebound), but the age old question is where do we go from here?”
Keep drinking the Kool-Aid, bob.
smarten
Hey BB, here’s some more kool-aid fodder FWIW!
I was watching a special Bill Gates/William Buffet round table at Columbia Business School [on CNBC] and heard the following from Mr. Buffet [I am sure those of you who have regularly followed Mr. Buffet have already heard this one before, but I hadn’t]: “if you wait for the Robins to appear, spring will be over.”
smarten
Hey Derrick. With your permission I’m going to give you some free advice since your stated long term intent is to treat your new home as a rental. Assuming you can qualify [which you should be able to with a household income (including your wife) of about $75K/annually]; and can document your earnings as ordinary wage earners]; finance the condo. Rates are historically low; you will pay favored interest rates/terms as an owner-occupant; and the cost for a 30 year $114K fixed rate [under 5%] home loan should be under $600/month, P&I! With your $350K cash in the bank [soon to be $464K] and stock market acumen, you should easily be able to cover the mortgage expense. And then once your home is a full fledged rental, you’ll appreciate the debt service expense [offset by depreciation]. Just a suggestion Derrick. Oh, and you might want to try and take advantage of the [existing] first time homebuyers’ tax credit – but you might have a problem explaining why you were the owner 5 years ago, but did not take title until this year.
Good luck – our parting gift [“sorry I won’t be around to be kicked in the face”] to you and your wife!
MikeZ
RE: “Linda M. Heegard is Derrick’s mother. In 2007 [if not before] she wasn’t living in the Palacio SFR – because on November 5, 2007, she recorded a Declaration of Homestead declaring the Tres Arroyos SFR to be her principle residence.”
smarten, that doesn’t explain why Mike McGonagle obfuscated the facts.
That was Derrick’s residence, and it was for sale at the time (another falsehood from Derrick). Are we to believe that Mike McG – one of the best data diggers here – was the only one who didn’t know it?
Come on! I was born at night, but not last night.
Mike McG, do you have anything to add?
MikeZ
Derrick, liars get kicked in the face when they’re exposed. That’s just the way it is.
You can 1) run away, or 2) stick around, man up, apologize, stop lying and start acting like an adult.
derrick
Mike-
did your get pay your rent on time this month?
take care board! I wil be in sugar loaf fl. if you need to get a hole of me !
cheers!
derrick
I’ll choose option 1) run away (to key west florida)
GrandWazoo
“if you need to get a hole of me”
Wow. Some things you just can’t make up.
Well done Mister Stucco.
bob c
BB
I’m not drinking the Kool aid. What does anyone do with money these days???????
Money market 0.15%
3 year brokered cd’s 2.40% +pay ordinary
income taxes
3 year AA state G O 1.25%
10 year AA state G O 3.00%
real estate (not beyond my primary
residence)
s and p 500 1110 + or – ExtremeRisk
gold or oil just rallied 100% f/low
ExtremeRisk
Inflation indexed bonds?
Mattress????
there’s no return for bond investors and major
risk for asset holders
SO BB where does one put their money????? without
taking extraordinary risk or lack of diversification????????
BB what does a guy do with a couple of million
and still be able to sleep soundly at night??
we already not into reno real estate or any american real estate …..but where??????????
smarten
Hey MikeZ, give Dyson’s Dad a break. Just checking title in a vacuum [and of course, who had reason to question Derrick’s attestations to the contrary], one would not know that Derrick was the equitable owner of Palacio. The only reason I knew otherwise was because I examined the deed from Linda Heegard to Derrick and saw it was exempt from the real property transfer tax. My question then was why? That led me to find the answer.
It’s hard enough mining the portion of the public record available to the public online. If Mike or anyone else for that matter had to start examining recorded documents to look for clues of hidden events behind the scenes…