You must flip it!

A new flip came on market at 646 Maryland St. 90245. Listed by Jim Van Zanten, a Manhattan Based realtor.   Priced at an ungodly $1035/sqft this tiny 1038 sqft house is listed for $1.075 mil. and It will sell.

Someone  got some white paint from home depot and painted the 1950s cabinets therefore this house MUST be worth a million dollars.  Built in amenities like a chopping block that has seen 50+ years of use. Emmm, sounds delicious.

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Brand new hardware and vanity for your master ONLY bathroom.  Don’t bumb your knee when you get out of your shower.

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This is market price. The price is what the market will bare.

Someone is going to drop $200k of their life savings for the privilege of spending about $5000/month to live in this house.

Someone with a kernel of financial sense would save their $200k and rent this 1600sqft house for $4900 and get an extra bath and an additional 600sqft of living space. 

Here’s a little lesson on the future value of money. If you take $200k and invest it and get a 6% return on your money (completely achievable) after 10 years you will have $358K.  15 years = $479K, 20 years = $641K –

You want to tell me that your tax write-offs after ten years compares to an extra $158K in the bank?

Yes, I get it’s not a fair comparison because I’m not taking into account that this $1 million dollar house could be worth $1.6 mil in 15 years with a 3.5% annual increase. But one of these “investment” scenarios involves you taking all your chips and pushing them in. Seems like a sound investment.

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