Richmond, CA Ranch

Here's a rather cute mid-century ranch in a not-so-horrible part of Richmond, CA (in the East Bay -- north of Oakland, just east of Marin County) listed for a mere $64,900 -- That's less than 20% of its peak "bubble" price of $385,000 (8/24/2007)! What might sound too-good-to-be-true really has become commonplace here in recent months. In its usual, overly optimistic way, Zillow.com still thinks this place is worth $328,000.


Based on a survey of craigslist rental ads, a house like this could probably rent for $1000 to $1200 a month, delivering positive cash flow for an investor, considering a mortgage payment, including taxes, would likely be around $600 to $700 per month. Based on what is shown in the listing info, the place appears to be in pretty decent condition, but needs cosmetics (the usual makeover... carpet, paint, finishes) and bathroom fixtures. For what would likely amount to about $5,000 to $8,000 this place will shine.


Over the course of the past 6 months, prices have fallen so far in some parts of the Bay Area that it is possible for nearly anyone to buy a house. As recently as a year or two ago, people who could not afford a few hundred thousand for a modest place in a remote location were excluded, unless they person chose a wildly creative mortgages that never really got them any closer to having any equity in the property and only set them up for disaster when the bubble popped.

The moral of the story is that places like this will likely prove to be fantastic investments -- a person can get a house like this for its 10-years-ago price and wait out the market, living in or renting out the house in the meantime. People continue to move to the Bay Area, and the projections show this to continue for decades to come, meaning that in the long run, demand for housing will continue to grow and prices will rebound (eventually) to their previous heights.



The basics...
Address: 579 8TH ST, Richmond, CA 94801
Current Listing Price: $64,900
PREVIOUS Sale Price: $385,000
Size: 2 Bedrooms, 1 Bathroom; 950 square feet
Lot: .06 acres

http://www.realtor.com/realestate/richmond-ca-94801-1100165336/