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Updated over 2 years ago on . Most recent reply

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2
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Wilson C.
  • Daly City
2
Votes |
2
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Looking for solutions to help my friend out!

Wilson C.
  • Daly City
Posted

Hello guys, I have been studying real estate for about a month and reading the book, Investing in real estate, with no and low money down. So far, I have loved everything that Brandon wrote.

Today I just talked to my friend, who wants to sell her house, but she has a hard time selling now and needs help.

First, the house is selling for $1,629,000; the price decreased from $1,798,888 on Aug 25. she also told me the mortgage is 7,500 per month. I think her house is beautiful, but the price is too high because this house has 4 bedrooms, 2.5 baths and 2 parking spaces with 2,380 Sq Ft. I believe this house is suitable for family-style only.

Here is the description of the house,

Absolutely spectacular home with incredible ocean views. Modern interior design, married with a panoramic view, makes this home your must-see destination! Enjoy panoramic divine ocean views from almost every room in this stunning home. The bright and open floor plan features vaulted ceilings, recessed lighting, a gas fireplace, and access to a deck, expanding the length of the living and dining room, perfect for entertaining. Large windows featured throughout the home allow incredible light so you can enjoy the view during sunset and sunrise! The updated kitchen features stainless steel appliances, quartz countertops, and a custom tile backsplash. The lower level offers four large bedrooms, a playroom with a full bathroom, and a laundry room with additional storage space. A lower deck overlooking the large backyard.2-car garage. This house is located nearby shopping, restaurants, coastal trails, and the highway for easy commuting.

So, I was brainstorming for the whole day, thinking about what I could do for her and which methods I could use from the book; as I mentioned, I was reading the book and remembered there is a "lease" option that may fit this situation. But, unfortunately, I am just a newbie here, so I can't give her many suggestions yet. Also, I don't think this is a good deal on the market now; plus, I used the calculator from BP, and the rent for the area is very low, not more than $4500, and the CoC ROI is a negative number.

Thank you for reading my post; I hope my post can get some experts' attention and get some suggestions to help her.

Most Popular Reply

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67
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27
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Slaiman Atayee
  • Real Estate Agent
  • Washington, D.C.
27
Votes |
67
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Slaiman Atayee
  • Real Estate Agent
  • Washington, D.C.
Replied

Assuming she's working with a competent agent, they should be able to advise her what her house is worth compared to comps and given the current market outlook in that area. Maybe it was worth 1.7m months ago but things have changed in a lot markets with prices softening. Since we're in the downseason in most markets maybe it makes sense for her to pull the property until the spring and then relist then and get max value.

From an investment standpoint I can't think of anything you could do with a $1.6m SFH to get this cash flowing except maybe STR/Airbnb (but there's probably local city rules you'd have to consider).That or tell her to get some roomates! Just my take but maybe others have more creative options. Good luck!

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