thatcher shortcrust: Single Family Rental market is running out of inventory ? OC Beach ...

10/01/2012 By: Esther Cho

No doubt, the potential of the REO to rental market has caught the attention of both individual and institutional investors. But, what is the potential of the REO to rental market, and how long will it continue? In a recent report authored by economist Paul Diggle, Capital Economics addressed those questions.

So far, Capital Economics said those who seized the opportunity early on appear to have achieved gross rental yields between 8 percent and 12 percent, a sufficient amount to cover the price tag of managing single-family rentals.

The sufficient rental yields, however, will only last as long as there are enough discounted properties to purchase.

Recently, the National Association of Realtors reported pending home sales slipped month-over-month in August, noting shortages of lower priced inventory in much of the country, especially in the West.

While recent housing data points to a decrease in the supply of distressed inventory, Capital Economics said, ?the potential supply of distressed homes is considerable,? noting an estimated 3.8 million homeowners who are either deeply delinquent or already in foreclosure.

Wouldn't you be embarrassed to overpay by $100,000? Only fools buy houses without knowing neighborhood values. Don't be a fool. Don't suffer the pain of an underwater mortgage. The surest way to lose your house is to overpay for it. Our reports identify overvalued and undervalued neighborhoods. Use it to broaden or narrow your search area. Savvy buyers work with us to find bargains. We've saved thousands from financial ruin. Let us save you too. If you want peace of mind while shopping for your next home, sign up for our monthly market newsletter.

412 Goldenrod, Corona Del Mar, CA 92625 (MLS # S713215)

(all data current as of 10/5/2012)

Price	$1,695,000
Beds	4
Baths	2 full
Home size	1,800 sq ft
Lot Size	3,540 sq ft
Days on Market	8

This duplex sits on one of the best streets in CDM, just a few homes from the Goldenrod footbridge. Ideally located just steps from the beach, restaurants and shops. The front and rear home consist of 2 bedrooms and 1 bath. A large courtyard divides the two properties and provides a great outdoor space for entertaining. This property offers a great rental opportunity or build the home of your dreams.

Property Type(s): Single Family, Residential

Last Updated	9/27/2012	Tract	Corona Del Mar South Of Pch (CDMS)
Year Built	1950	Community	Corona Del Mar - Spyglass
Garage Spaces	2.0	County	Orange
Total Parking	5

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with Christopher Bello DRE# 01492889, Pacific Coast Estates, Inc.

(view all details for MLS #S713215)

Proprietary OC Housing News home purchase analysis

412 GOLDENROD Corona Del Mar, CA 92625

$1,695,000 ??.. Asking Price
$417,500 ???. Purchase Price
4/13/2001 ???. Purchase Date

$1,277,500 ???. Gross Gain (Loss)
($33,400) ???? Commissions and Costs at 8%
============================================
$1,244,100 ???. Net Gain (Loss)
============================================
306.0% ???. Gross Percent Change
298.0% ???. Net Percent Change
12.4% ???? Annual Appreciation

Cost of Home Ownership
??????????????????????????
$1,695,000 ??.. Asking Price
$339,000 ???? 20% Down Conventional
4.00% ????. Mortgage Interest Rate
30 ?????? Number of Years
$1,356,000 ??.. Mortgage
$323,865 ???. Income Requirement

$6,474 ???? Monthly Mortgage Payment
$1,469 ???? Property Tax at 1.04%
$0 ???? Mello Roos & Special Taxes
$424 ???? Homeowners Insurance at 0.3%
$0 ???? Private Mortgage Insurance
$0 ???? Homeowners Association Fees
============================================
$8,367 ???. Monthly Cash Outlays

($1,345) ???. Tax Savings
($1,954) ???. Equity Hidden in Payment
$471 ????.. Lost Income to Down Payment
$444 ????.. Maintenance and Replacement Reserves
============================================
$5,983 ???. Monthly Cost of Ownership

Cash Acquisition Demands
??????????????????????????
$18,450 ???? Furnishing and Move In at 1% + $1,500
$18,450 ???? Closing Costs at 1% + $1,500
$13,560 ???? Interest Points
$339,000 ???? Down Payment
============================================
$389,460 ???. Total Cash Costs
$91,700 ???. Emergency Cash Reserves
============================================
$481,160 ???. Total Savings Needed

The property above is available for sale on the MLS.

Nearby Foreclosures

Gain a competitive advantage over other buyers. By locating distressed properties -- before they hit the MLS -- you can discover where tomorrow's REOs and short sales will appear. Most of these properties are not listed on the MLS, but they will be soon. Research properties in advance and get a jump on your competition. Don't miss out on another deal because you couldn't act quickly. Use this tool to your advantage!

The red properties are already bank owned. As soon as REO asset managers prepare them for sale, they will be on the MLS. Get ready!

The green and blue properties have owners who are not paying their mortgages. They may be offered as short sales, or they may go through foreclosure and become REO. Either way, they will also likely be available on the MLS soon. Find your next home!

Be prepared to offer on these properties by researching them in advance or risk losing out to buyers who are have done their homework. Start your research today!

To find distressed properties, enter your desired location and press search. Scroll through list by pressing "next."