mls # 07-199841
874 SANBORN AVE
LOS ANGELES 90029
$549,999 2 bedrooms
1.00 bathrooms
FIXER! SELLER RAN OUT OF MONEY. GREAT OPPORTUNITY! THIS PARTIALLY RENOVATED 2+1 LOFT, AND FRONT DECK IS ABOVE STREET. PROVIDING AMAZING CITY VITEW & HOLLYWOOD SIGN. NEW FOUNDATION. FLOORS, ELECTRIC. PLUMBING KITCHEN CABINET, EXOTIC GRANITE TOPS & WINDOW/WALLS. ALL IT NEEDS. IS YOUR MAGIC TOUCH! SELLER IS VERY MOTIVATED.

Is that because the person who bought this 1,000 square foot house for that price is crazy?

I live in a 1,750 square foot house with three bedrooms and one bath. How do you squeeze so many rooms in such a tiny house? (I also have a full basement with 700 square feet totally finished (beautiful woodwork, carpeting, etc.) + a full bath)

House includes a big yard, garden, many trees a half size soccer field, in a nice neighborhood (many parks and very low crime) in a large midwest city. Current price: $170,000.

CA prices are hard to fathom from a Midwest perspective.

You have a solid income and $150/s.f. seems reasonable. But again, what part of Orlando, quality of schools matters in arriving at a reasonable price. You mention that the oldest will start college. You have a solid income and with the equity you have, I would compare rental rates (which you have) with the price of the home. Florida is getting slammed. Highest foreclosure rates in the country. If anything, the ball is in your court. I would find a good realtor in the area, someone with experience and a proven track record, and make an offer below market if you can.

Keep in mind in a buyer’s market you are in control. Whether we are in a bubble or not doesn’t really matter if you can run a simple market analysis and see if owning makes more sense than renting. I would go online and run the numbers on a rent vs. buy calculator. If you are planning on staying their 5 years, I wouldn’t expect any significant appreciation and possibly, some minor declines. But you shouldn’t worry too much and enjoy your equity and new career opportunity.

Go watch an Orlando’s Magic game to acquaint yourself with the sporting atmosphere.