Case Study: REO

[Kevin Cardinale]

Case Study: REO

Price $49,000
11/04/2002 Sold $112,000 -- $122 Public Record
Beds 2 bed
Baths 1 bath
House Size 912 sq ft
Lot Size 0.14 Acres
Price/sqft $54
Property Type Single Family Home
Year Built 1977

COMPS
5788 Chisolm Trail
Last sale: $69,900 on Jul 19th, 2011
Status: Sold
Bedrooms: 2
Bathrooms: 2
Property type: Single Family Residential
Size: 928 sqft
Lot: —
Price/sqft: $75/sqft
Year built: 1997

6266 Foothill Boulevard
Last sale: $110,000 on Feb 4th, 2011
Status: Sold
Bedrooms: 2
Bathrooms: 1
Property type: Single Family Residential
Size: 1,220 sqft
Lot: —
Price/sqft: $90/sqft
Year built: 1977

6410 Aclare Avenue
Last sale: $60,000 on May 5th, 2011
Status: Sold
Bedrooms: 3
Bathrooms: 1
Property type: Single Family Residential
Size: 1,008 sqft
Lot: —
Price/sqft: $60/sqft
Year built: 1977

CONCLUSION
Hard to pull comps on such a tiny house. But anyway, this is an REO. The properties around it were all sold for ranging from $65k - $100k.

Pulled up rentals in the area: $720 - $834 range for 850 sq ft. assuming $750 rent.

( $750 x 12 ) / $49,000 = 18.4 cap rate [ uh ROIL ]

NOW I'M COOKING WITH BACON? :mrgreen: