A reader pointed us to a listing on Craigslist offering 1688 Dolores for $9500/month. What raised his eyebrow is that 1688 recently flipped and sold after a relatively long time on market. We;re curious, too, so we turned to John Downing for some background. In short, a developer bought it from the bank in 2011 for $928,000, renovated and put it on the market in April of 2013 for $2.295M. It went in and out contract, on and off the market and eventually closed escrow on November 4 for $2.2M.
All of which begs the question: why would someone pay $2.2M for a house and then put it on Craigslist as a long term rental? We asked John if he knew anything more:
That's an interesting question. I did some more digging. Looks like the buyer purchased it as a 2nd home. They put $1.2M down and got a $1M loan with a 30/yr amo from BOA. The mortgage payment, taxes, and insurance might be just be under the $9,500 asking rent.What do you think? Is a $2,200,000 single family home on Dolores near 30th the new normal for income property?