Flippers Profiting in Costa Mesa
Remember this guy Flipper from TV? Well real estate flipping is alive and well in Costa Mesa right now. I try to keep abreast of most of the inventory that hits our Costa Mesa market, and yesterday I got the chance to see six homes on the market right now in the Mesa Verde area.
I will list them here, with a quick note, and I will give you the full description of each property below:
- 2939 Peppertree Lane – Nicely remodeled, great 3 bedroom home for an investor
- 3319 Wyoming Circle -Beautifully remodeled, move in ready. The pick of this litter!
- 1798 New Hampshire Drive – Large, modern re-do with a pool, exterior needs a bit of TLC
- 1586 Corsica Place – Spectacularly thorough re-do, nice street
- 3104 Samoa Place – Great curb appeal, large living spaces, interesting floor plan
- 1671 Gisler – Busy location, interesting floor plan with a 1960’s sun room
Hello Real Estate Flipper
So it’s really interesting to me- all of these homes for one reason or another were foreclosed on by the bank or were sold as short sales to investors. Most of them will create at least 10% quick profit for these investors, which would be more like a 30% return on investment if you looked at it as an annualized return.
The market has lots of these right now, not just in the Costa Mesa market. It has to do with banks not necessarily wanting them back on their balance sheets, so they will part with them for a reasonable amount of money, or what they call an automated market valuation (like a zestimate from pillow).
So when the bank unloads these, typically an investor will buy them (often sight unseen), and renovate the interiors. They will do paint, carpet, and sometimes they will have to complete renovations including kitchens and baths.
Most of these that I saw on the list had new kitchens and new baths, and these investors are really trying to maximize their sale prices.
Is it always a bad thing that these guys flip these homes? Not necessarily because it does typically raise the values of the surrounding local homes. These home sell as standard sales, so it helps the neighborhood comps quite a bit, especially if there are still short sales and REO properties in the local ‘hood.
Is it bad for buyers? Not necessarily. While a buyer might pay a slightly elevated price, what they get in return is normally a very well redone house. Many times buyers don’t have the extra $$$ to take on a kitchen or bath remodel, they only have money for the downpayment.
If you are wondering how’s the market??? It’s a strong seller’s market for all of these flippers to be flipping properties like this right now.
Need help with finding a property in Costa Mesa real estate? Feel free to contact local expert Colin Delaney at 714-743-9882 or E-mail me for help.