中穀房市底不可測 - Second REO

Thought the last purchase a good deal? think again!

Purchased before end of 2008. Price: 120K ($65/sqft)
Size: 1838 sqft 4 bd, 2.5 bath, 2 car garage, 2 story built 2005
Sale history
10/19/2006: $410,000
08/13/2008: $145,769 (foreclosed first mortgage balance?)
2006 highest value est.: 430K
Location: Stockton (Park)









Rough cash flow analysis:

Rent: $1450/month (moved in within one week after purchase close)
Initial remodeling: $3500 - paint, window treatment, and back yard concrete. closing cost $900.
Can not get a loan, so use HELOC: 125K under 4.75%): Interest only 652/month

Mortgage payment: 652/month
Tax: 254/month
Insurance: 34/month

Total net cost: 652 + 254 + 34 = 940

$1450 - $940 = $510/month positive. (not counting vacancy & maintenance, only for entertainment/educational purpose). Who cares the bottom?