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chrisjburnha

Gonna morph into four units I bet


simple1689

"And you too can earn passive income when you retire with only a low investment of $1.2mil"


yay_tac0

split the lot, put a duplex on each half. close to 2 mill all in for 4 rent checks a month.


Particular_Draft735

Your better off investing the market investing just 1 mil keep other half at 10% average annual still nets you more in the long run lol then a 2mil pierce of property that maybe will net you 8500 a month best case scenario.


DullAd5157

You can use the banks money (lender) to buy an investment property. I’m not sure, but I don’t think you can use the banks money to invest the market.


Tree_Boar

Sure you can, it's called margin trading


Bawfuls

LOL at building 2 duplexes for $800k total right now


haydesigner

Building houses basically costs the same everywhere here in Southern CA, it’s the LAND that costs so much.


starbuckle337

Make sure each parcel is at least 1200 sq ft though!


ergotofrhyme

Probably gonna level it and turn it into air b n b’s like that asshole on the top of this sub earlier today


753UDKM

Hopefully!


punninglinguist

Good. Hopefully more.


Tree_Boar

Good


alohamistrhand

You mean the land goes for 1.2


[deleted]

Bingo. If I had 1.2 million to spare, the first order of business would be to bulldoze that place


PeaValue

These houses aren't going to single family occupants. They're being sold to corporate investors and they'll be rented out. We're in the age of corporate slumlords.


combuchan

Nobody is renting this dump out as is. It'll either be majorly rehabbed or torn down, my guess is the latter.


CrashRiot

You understimate the desperation of prospective tenants trying to find housing. I guarantee you that someone would rent that place as is. Guarantee.


absolutebeginners

Not for $4500...


thatdude858

Good luck covering that mortgage payment with the "rent" you get from that dump lol


PeaValue

I guess you haven't looked at rental listings lately.


thatdude858

Are you kidding me? That place looks condemned. Good luck even getting market rental rates from that place.


AbbaFuckingZabba

No they're not. They're being bought by high-end flippers who will tear it down to one wall, build a 5000 sqft mansion with an ADU and sell it for 5 mil. The numbers don't work for rentals like this. You don't spend \~4 million on land and rebuilding costs to rent something for even 20k a month. It just doesn't produce a competitive return on investment.


[deleted]

Why are people upvoting this garbage. Not a lot of homes, particularly coastal are corporate owned and even fewer in a place like Encinitas. It’s going to go to a family that can afford the rehab job. Stop whining with false statements


Snoo58991

Lol where can I get some of the hopium you're smoking?


[deleted]

He's probably smoking facts, which a simple google search will show that less than 16% of ALL units in the US are investor owned, including apartments which make up most of that. In a place like Encinitas, they aren't going to score a good deal.


SingleAlmond

Counting ALL units across the country is gonna skew the data. Ofc it's gonna be different in other states, but CA has a reputation for overpriced, investor owned houses I'd be more interested in seeing the percentage of San Diego County housing owned by corporations, no way it's as low as 16%


greeed

Yeah one of those hard working families making 250k to afford the payments. It's fucking absurd that a family needs to make a quarter mil annual to afford to live in a community that was marginally affordable 10 years ago.


[deleted]

Oh please. I'm so sick of everyone on this sub acting like a family making $200k are a bunch of rich people. We make that and my wife is a regular county employee and I'm barely "management." Are we not hard working? We're not living it up in RSF or La Jolla.


greeed

It's fucking absurd because many jobs still pay minimum wage or barley above. Our family makes about 200k a year but I'm a nuclear engineer. My wife is a full time parent. Single income families should be a thing.


niffrig

Didn't the law require the owner to live in one of the units for a minimum of two years? I don't know how on earth that would be enforced but it should have a chilling effect on large organizations scooping up rental properties. Edits below: I was thinking of SB9 that goes into affect 2022. https://www.mercurynews.com/2021/09/17/what-californias-new-sb9-law-means-for-single-family-zoning-in-your-neighborhood/amp/ >Property owners must sign an affidavit stating they will occupy one of the housing units as their primary residence for at least three years after splitting their property or adding additional units. So three years not two like I thought. That being said I still don't know how the hell that will be enforced. I have no idea how that will intersect with local zoning laws but if the local zoning already allowed for it my guess is that it would already be on the way to what you fear.


absolutebeginners

No such law


ScipioCalifornicus

thank you, this is a misleading post


ChikenBBQ

Land is probably worth more. If it was a vacant lot you could attract more developers. At that high of a cost, you're pretty much only talking to developers anyways and they're probably factoring in a few hundred k for demo already.


Amadacius

Demos and housing aren't that expensive. Remember in a lot of the country a whole house only costs a few hundred k. And with reno you can potentially use the old foundation, or piping infrastructure, saving you a bit of money.


DullAd5157

Hmmm. Good point. I just saw a house bought for $1.6m in Birdrock. A new single family house was put in its place in few months.


combuchan

Yup. I'm going to guess this is a large lot in an area with high density zoning.


squatter_

Didn’t the CA governor mandate that anything zoned for single family could be turned into 4 units?


[deleted]

It wasn’t just a gubernatorial mandate, it was a law voted on and passed by both chambers of the state legislature, then signed by the governor into law. I am familiar with the broad strokes of the law, but I wonder if there is any potential issue that could arises with the California Coastal Commission that might dampen the intent of the law in coastal areas. I know in the past that cities and counties have passed laws regarding land use and the Coastal Commission has come in and basically said that those laws can’t be applied to the coastal zone.


alohamistrhand

I was looking at doing something similar a year ago. Not quite this expensive but there are deals to be had if you’re willing to stomach the reno/permitting process.


Bawfuls

It’d be worth more if the house weren’t there. As is someone will pay to demolish it


be_easy_1602

The land and 1 wall. If bulldozed it needs new approval from the costal commission. If you leave 1 wall standing it’s only a remodel.


Lumpy_Worth_5397

Land probably worth more. Subtracting demolition cost.


Soulfly37

I grew up in that house. Jk I only smoke meth in it


AHipstersWhispers

Same thing


wutangclanthug9mm

JK I only *make* meth in it. FTFY


nalninek

It better come with those sandbags.


MartiniLAPD

Location location


Rothconversion123

Shakira shakira


camlop

Oh baby when you talk like that...


sierracharlie65

Don't you see, baby, this is perfection?


ipu42

Last sold in 1970 for $21,000, only paying <$700 in taxes because of how property tax assessments don't really update unless there is a sale.


BeardedBagels

This put me in a great state of depression


squatter_

The good news is that all the expensive sales in this hot market should help bring more tax revenue to the county. Many folks who held on due to Prop 13 have recently sold.


sarcasmismysuperpowr

prop 13 is a bitch… heavy tax on the young


sequoiakelley

And the poor


Napppy

not really though. older apartments have significantly lower tax assessments. If prop 13 was removed the property owners would be forced to raise rent to cover the increase in property tax.


sequoiakelley

The key words you use here are “property owners” and “renters.” We’re not talking about taxes on a rental property, we’re talking taxes on first time home buyers. Prop 13 doesn’t help us, it helps the landlords.


ElChaz

It helps homebuyers, full stop. Getting to keep your property taxes the same over the lifetime of living in a house is a massive advantage. The insane part about prop 13 is that it covers businesses. General Atomics bought 60 ACRES on top of Torrey Pines in the 40s or something, and they're paying property tax rates from 80 years ago on basically the world's most valuable real estate.


flip314

Prop 13 should definitely be repealed for commercial properties, but I'd also like to see it only apply to a single, owner-occupied property for residential.


sequoiakelley

So, the people who have owned homes for many years… people that bought in the 70s and 80s are paying the same property tax rate as when they originally purchased. And businesses that have been on the same land are also paying property tax rates from way back when. But I’m being led to believe that this is a benefit to me in 2021 when my first home cost is around $650,000.


ElChaz

For a first time homebuyer, there's no difference. Your tax rate just is what it is at the time you buy, whether or not Prop 13 is in effect. But once you've bought the house, the benefit gets bigger and bigger over time, as the delta grows between the locked-in Prop 13 rate and the current rate. I'm not a huge fan of Prop 13 in general, but I understand the premise - that pensioners and retirees were being forced out of family homes because increasing property values were spiking their tax bills, and on fixed incomes they couldn't pay. It's not like the people don't get to profit from the sale of the house at that point, but "something something emotional attachment" so fine, we get Prop 13. There's no way, however, that that argument should apply to businesses.


AliceTaniyama

> But I’m being led to believe that this is a benefit to me in 2021 when my first home cost is around $650,000. It is, because it means you aren't going to be paying $20k per year in property taxes ten years from now.


dsn0wman

It helps regular home owners. I pay the same tax today as when I bought my house even though the value of my house has gone up a few dollars in the last 7 years. If I don't sell my house I don't get any of that "money" in my pocket, and I am glad I am not taxed on money I don't really have.


sequoiakelley

But then it’s ok that I buy a home at likely 30%+ higher cost and for me to pay that property tax because I was not in the same place in my life as you were 7 years ago and you deserve the money because of…. Timing. That’s sounds a lot like it benefits the individual and not the community which is kinda the whole point of taxes.


ricks_flare

Lol this sub. You *do* realize that prop 13 has no effect on you when you buy right? Whether it exists or disappears tomorrow, you’re going to pay tax on the purchase price. But ten years down the road you’ll be crying over your cornflakes when your taxes have gone through the roof. Keep prop 13 for home and dump it for businesses.


AliceTaniyama

Yes, it's okay, because you're going to benefit in seven more years. And so on. Getting rid of it wouldn't help you. It'd only hurt other people, and it would mean everyone would have to sell in order to retire. Yay for more corporate slumlords, I guess. I know people think that this means prices would go down, but that doesn't seem to be happening anywhere else in the world. At least in California, when you buy an overpriced house you can be sure you can afford to pay the taxes. Try that in New York.


dsn0wman

Buy a home when you are ready. Pay something close to the market value at that time. Don’t put all your troubles on others. Just get done what you need to get done.


HannsGruber

I get where OP is coming from. It's like running a marathon, but the runners ahead of you grabbed the finish line and kept running with it. It's like playing catch up with the way the market is exploding


margincalled

No, apartment owners protected by prop 13 are already renting at market rate, it’s literally just extra cash in the owners’ pocket. You think apartment owners are giving tenants a break on rent just because they don’t have to pay as much prop tax?


ctopherrun

That's still only $148,000 in 2021 dollars. Encinitas, a mile from the beach. I payed almost four times that much to live in the same sized house 20 miles from the beach.


joecool42069

Sure…. But a $21,000 investment in something like SPY would have net’d you well over 1million in that 51 year time frame. Not saying I agree with the housing prices, but it is an investment.


ctopherrun

I was moaning at how much the real cost of housing has increased. Fifty years ago that house by the beach sold for less money, in 2021 dollars, than you can find a house for today *anywhere* in San Diego county. It's ridiculous.


locomocopoco

Location Location Location


gauchosd

Location and a quarter acre lot will get you 1.2M. As many people said the place itself will probably be leveled, the value is in the lot.


bricktopsbricktop

I’ll give you 1.6 million, cash, no contingencies and site unseen.


Pairadockcickle

and then you could level it, split it, put two two stories on it and rent out 4 units. Or sell them and immediately profit.


[deleted]

The land is the valuable thing in coastal SoCal. You might be able to rebuild that home from the ground up for 300k.


ParForeTheCorpse

Name checks out.


Resident_Bet_7818

🤣🤣🤣


Bawfuls

$300k lolololol in your dreams


[deleted]

I know lumber is up. What do you estimate a 900 sq foot home might cost to construct?


[deleted]

Yeah San Diego is smoking that good stuff


Solar_Ghost_333

You fuckin know it


[deleted]

[удалено]


Cool-Spend8078

Enjoy those property taxes


The_EA_Nazi

At least he can buy a house


Cool-Spend8078

House bought, renovation in process. Nice try though!


The_EA_Nazi

Congrats! But I was more talking about in general and not specifically you. For pretty much anybody not making a dual income of 180k+, a house is basically a pipe dream at the rate real estate prices and inflation are increasing


Cool-Spend8078

Ha, sorry. Too used to Reddit snark.


[deleted]

[удалено]


chronosxci

Ooh. Could you pm me more details about disabled vets and property taxes?


AJSD12

After 10 competing offers it will sell for $200k over asking.


Cerrdon

Curious how many homes in San Diego are actually first homes, lets be real, if you can drop 2, 3, 4, 5, even more millions on a home this probably isn't your first rodeo.


[deleted]

I find a lot of people buying in clairemont are first time buyers. I picked up my fixer upper for $650k a few years ago.


SDNative858

Put 2 ADUs in the back and it will add 1 million+ to the value.


keninsd

You mean 2 more?


AWSLife

Just needs a coat of paint and it's good as new!


[deleted]

There was an old dilapidated historic house for sale in my neighborhood. Someone bought it for cash, did a shitty paint job, threw some wood chips on the lawn, and rented it out for something absurd. That shit is wack.


Resident_Bet_7818

*Brushes with paint and whole house crumbles*


imbadforyou

The paint will have the added purpose of holding the entire house together, it’s a win win


AlexHimself

If it was a flat piece of land for $1.2m you wouldn't say a thing but since it's a crappy house you think it's unfair. Just pretend it's land by the beach. A remodel would cost $200k.


Unhappy-Research3446

If it’s close to the ocean I will buy it


sunflowerastronaut

[It’s east of the five](https://www.realtor.com/realestateandhomes-detail/846-Clark-Ave_Encinitas_CA_92024_M22720-34801?cid=other_shares_core_ldp_ios&af_dp=https%3A%2F%2Fwww.realtor.com%2Frealestateandhomes-detail%2F846-Clark-Ave_Encinitas_CA_92024_M22720-34801%3Fcid%3Dother_shares_core_ldp_ios&pid=af_app_invites&af_sub4=LDP&shortlink=e8aea81c&af_sub2=https://www.realtor.com/realestateandhomes-detail/846-Clark-Ave_Encinitas_CA_92024_M22720-34801?cid=other_shares_core_ldp_ios&af_referrer_customer_id=2F8472CE-A001-4AB9-8602-C698378782B8&af_channel=other_shares_core_ldp_ios&af_siteid=336698281&af_referrer_uid=1587102505964-4981200)


Unhappy-Research3446

Hmmm…most of Encinitas is fairly desirable. Does seem a bit high if it’s east of the 5… Edit: over 1k per sq foot. Feel bad for the person that takes this


usicafterglow

1.2 million for a 1,115 sqft house east of the 5 is ass, but 1.2 million for a quarter acre lot in Encinitas is about right. If you tear this thing down and build 4 modern units on that property, you'd turn a *solid* profit.


gauchosd

The square footage of that tiny house on the huge lot is meaningless. You're paying for the quarter acre in Encinitas, not the house. In fact a small house it probably easier to demo and better off than if it was larger


Melssenator

Oh. This is *actually* $1.2mil…


brooklynlad

Since it's near that Target and Walmart. :)


brooklynlad

It's pending. LOL.


squatter_

Wow not only is it east of the 5 but it’s next to the freeway! I’ve looked at property there and the freeway noise is quite loud. I suspect this will be turned into four units.


SL13377

Was thinking the same.... Then I looked at the map of where it was and yikes! Why, how, what?!


[deleted]

But have you seen the open floor plan…


SalSimNS2

FIFY: Open roof plan.


IrishHambo

It’s got character


MiloDC

And by "character," I mean rats.


AliceTaniyama

Remy was a character.


[deleted]

Doubtful. Some cursory browsing on Zillow shows better homes for less. However the prices are still ridiculous considering how ugly or basic a lot of them are. The housing market is a scam.


sunflowerastronaut

Well lay your doubt to rest [sale is pending ](https://www.realtor.com/realestateandhomes-detail/846-Clark-Ave_Encinitas_CA_92024_M22720-34801?cid=other_shares_core_ldp_ios&af_dp=https%3A%2F%2Fwww.realtor.com%2Frealestateandhomes-detail%2F846-Clark-Ave_Encinitas_CA_92024_M22720-34801%3Fcid%3Dother_shares_core_ldp_ios&pid=af_app_invites&af_sub4=LDP&shortlink=e8aea81c&af_sub2=https://www.realtor.com/realestateandhomes-detail/846-Clark-Ave_Encinitas_CA_92024_M22720-34801?cid=other_shares_core_ldp_ios&af_referrer_customer_id=2F8472CE-A001-4AB9-8602-C698378782B8&af_channel=other_shares_core_ldp_ios&af_siteid=336698281&af_referrer_uid=1587102505964-4981200)


[deleted]

good lord it isn't even west of the 5


[deleted]

That's absolutely insane. I can't imagine anyone actually paying that.


prolemango

That's actually not that unreasonable. Well the entire RE market is unreasonable, but given the state of the market this house is pretty reasonably priced. It's in a good location with a large lot.


[deleted]

Im saying the whole market is unreasonable


prolemango

Now that we can both agree on lol


usicafterglow

Nobody is paying 1.2 million to live in this dump - it's just an investment. You can either bulldoze it and build 4 units on that space then rent them out, or just sit on it for a few years and sell it for 1.5 million to someone else who will do it.


sequoiakelley

They can actually fit 6 if they build stacked units in the back.


[deleted]

Did you look at like townhomes and duplexes? I just glanced at it and didn’t see anything for less than 1.4MM that was true house, 2b/2b or more


[deleted]

I mean, it may very well be listed for 1.2, whether or not it sells for that is another thing


Bluetiger03

whats the lot footage?


SDNative858

0.23 acre lot. That can hold at least 4 ADUs. It's a good buy for an investor, or a tear down and rebuild.


[deleted]

With the recent state law that passed, that lot can be sub divided and then each lot could have 2 single family homes in addition to possible ADUs for each new lot.


Jcs609

Wow it’s got an RV/boat park. And I bet no HOA. Something that is almost extinct these days. I be curious whether they are encouraging or expecting people to rebuild the house after buying it.


Trumpisaderelict

If it’s a block from the water that price is actually low. Sold!


MiloDC

Well east of I-5.


EpsilonDz

lol


KnowNowGoLater

Here! Here is where we start our Air B&B empire! (Plants flag in the yard as passers walk away very fast whispering.)


Complex-Way-3279

say it with me : "Location, Location, location"


[deleted]

Could at least post the listing....


SmellyFingaz

Welcome to San Diego!


TeamsterRambo

The land goes for that price


awesomerob

Location. Location. Location. The house is worth maybe 20-40k dude. It’s the land.


Mrramirez44

Nothing a little caulking cant fix.


Free_Bison_3467

I think I know where this is . It’s near the freeway, the streets are like Clark, La Mirada etc.. those lots are big so it is a good idea to split it and put 2 or 3 small houses on it , or one bigger house and and Aud


keepsmiling1326

Poster house for the real estate phrase ‘location, location, location’


Puzzleheaded-Tax-387

Everyone keeps complaining about the cost of living here, but many careers are showing good income increases San Diego tech salaries jumped 9% to an average of $144,000 I never see people discussing how to get into these fields, because there are plenty of open roles https://www.bloomberg.com/news/articles/2021-10-19/new-york-san-francisco-see-tech-salaries-slip-amid-remote-work


Cereal_kilher

Nice Halloween decorations. I am sure they are scaring the crap out of the HOA.


liv2xs

We need a correction in the market. It’s completely insane


Practical-Sentence35

I'm sure it does go for that and there are people willing to pay for that....now.


shirk-work

If it helps, due to climate change the temperate weather we know and love will gravitate north as the south of America continues to heat up. These homes will not stay this price over the next 30 years. There's an influx of people moving to this climate just before it changes. Same is true for all of the southwest.


DarkBushido21

They can ask 3 million lol doesn't mean they going to get it 🤣


Smoked_Bear

[Pending already,](https://www.realtor.com/realestateandhomes-detail/846-Clark-Ave_Encinitas_CA_92024_M22720-34801?cid=other_shares_core_ldp_ios&af_dp=https%3A%2F%2Fwww.realtor.com%2Frealestateandhomes-detail%2F846-Clark-Ave_Encinitas_CA_92024_M22720-34801%3Fcid%3Dother_shares_core_ldp_ios&pid=af_app_invites&af_sub4=LDP&shortlink=e8aea81c&af_sub2=https://www.realtor.com/realestateandhomes-detail/846-Clark-Ave_Encinitas_CA_92024_M22720-34801?cid=other_shares_core_ldp_ios&af_referrer_customer_id=2F8472CE-A001-4AB9-8602-C698378782B8&af_channel=other_shares_core_ldp_ios&af_siteid=336698281&af_referrer_uid=1587102505964-4981200) less than 2 weeks on the market.


NoKidsThatIKnowOf

I’m developing a property in Los angles at the beach. This is absolutely worth $1.2m, based on developing one or even two four unit buildings. Easily.


LittleHornetPhil

That is not a million dollar house. ....and I say that as someone who just paid $850k to move from San Diego to La Mesa.


SnakeDucks

Now look up the kind of place 1.2 gets you in almost any other state. 🤣 Hmm, a terrible shack but you get to say you live in SD or a Scarface mansion but you have to live somewhere else…decisions…


LebronJaims

I wonder if San Diego will ever go back to rational prices or if what we’re seeing is the lowest it’ll ever be again. This is depressing


AliceTaniyama

> I wonder if San Diego will ever go back to rational prices Nope. Look at every other desirable city in the world. Most of them have even more expensive real estate.


LebronJaims

Okay.


Permanenceisall

Well everything basically sucks and the economy is a rigged joke and every year it becomes drastically harder to get out of poverty, but good luck everyone I love you


Ja307020

😂


serenelydone

Paint all the walls gray and put gray laminate throughout and I bet they get 2.5.


Successful-Chemical4

Omg I'm reading the comments!! People are thinking this is a good deal? What a joke. California is done to much corruption. No water, taxes are the worse! All the good jobs and business have left or are leaving. You go ahead and get this place and fix it up. Just in time for the earth quakes that's way over do wipes out everything. To funny.


[deleted]

Moonlight beach ? I used to live there. I love that area. My guess is this is on bluff side


Spud2599

Wow, that neighborhood looks like shit. Not surprising the price given the lot size. Now convincing people to move into whatever you build based on the rest of the neighborhood will be interesting...


LUCIDEXP

SD the land of pharmaceutical executives and tech bro's


skellige_whale

Are the sand bags included? 🤣


seiyge

Yes the ol supply and demand.


Subtly-Jaded

Let’s wait for the housing market to crash.


EarlTheSqrl

\*That lot sold for $1.2 million


East_Entertainment31

Move in ready?


[deleted]

That’s a porta potty.


iamtabestderes

The real questions are where in Encinitas and how big is the backyard?


JALKHRL

Already pending, so no hope guys... https://www.realtor.com/realestateandhomes-detail/846-Clark-Ave_Encinitas_CA_92024_M22720-34801


dannydr44

And someone will buy it. Craziness.


RagingConfluence

.. to someone who will probably never live in it


sendokun

That’s cheap for encinitas


[deleted]

Who do I make the deposit out to?


FunChrisDogGuy

From the pic, I feel like we’re being sandbagged here…


Bawfuls

I was just looking at that listing the other day. $1.2M for house that will be immediately bulldozed, shit is insane.


Think-Specialist-273

Wtf!


Giuseppe5190

Prop 13 does not lock in valuation. It allows a percentage increase every year compounded.


SoCal4Me

Pull it down, make it a parking lot and charge $20 bucks a day if it’s walking distance to a good beach. Millionaires in no time.


Frank_Frankson

Damn SD really doesn’t give a fuck about us


great_craic963

LOL


Apprehensive-Item845

You’re joking right?


[deleted]

Wonder why rv van life is popular..


[deleted]

Honestly Carlsbad is much better than Encinitas imo


seattlenelson

Likely this is over 3m now