Tuesday, August 12, 2008

Update - 2815 NE 57th Ave Sold!

A reader sent in an update on 2815 NE 57th Ave. (see previous post).

Quick summary: The house sold for $485k in Dec 05, after only 2 days on the market. It was bought back by the bank at auction in August 2007 for $400k.

The bank initially listed the house at $339k in May this year, and it just sold for $285k in July, after 62 days on the market.

For those keeping score that's a 41% decrease from the previous (fishy) sale at $485k.

It's also a 16% reduction from the recent listing price of $339k.

That comes out to $96.54 per square foot of finished space, way below recent rates, which according to Trulia have been closer to $200 / square foot.

I'd say it's fairly priced, if not cheap. Granted it's not oozing charm, but it is over 3000 square feet and has been redone recently, hopefully properly.

Granted this is a foreclosure, but if that's the new going rate for price/square foot, a lot of people are in for a shock.

Thanks for the update James!

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Anonymous said...

$285,000 is fair for that outhouse? What was it worth pre-bubble? A sale price reduced from a grossly unrealistic price is a common tactic to fool the sheeple.

A tiny run-run down rambler in Portland (where unemployment is high) is worth maybe $60,000 to $70,000 if that.

Rents are falling and credit/interest rates tightening.

Patient Renter said...

Well here's to progress. Cheers.

Anonymous said...

I live by this house and I couldn't believe it when I saw the sale pending sign. That price is still to high considering the location, 57th is a very busy street.

Anonymous said...

This house was bought by an out-of-towner that owns rentals. I know the purchaser, and was shocked when they said the bought a house in Portland.

PDX Outsider said...

That makes sense. According to my calculations, if they can rent it for $1750 a month, it will be cash flow positive. Given that this is 4 bedrooms I think that's possible.

There's another data point that says this might be fairly priced, contrary to what anon 10:37 believes.

Bridgetownpeddler said...

still looks like a piece o' crap house to me in a bad location on a busy street. I would not have paid that for it.

Anonymous said...

My family rents a 4 bd/3 bath, 2800 sq ft home for $1250 a month. Granted, we are a ways further out in the Argay Terrace area, but we have gorgeous views, and a peaceful, quiet neighborhood. I find it highly unlikely that the owner will be able to rent that place out for $1750.

a landlord said...

anon 10:37:
Rent is falling? I'm getting $130 more for a 2bd apartment right now than I did in September '07 in Creston. I'm getting $80 more for a studio than I did in September '07 in Hosford-Abernathy. And that's 320 square feet. Not sure where you are getting your information.

Anonymous said...

rents are going up in your price range, but certainly coming down in the higher price ranges. It is difficult finding cheap apartments these days as greedy landlords suck the poorest of the poor dry. You should see the homeless shelters in this town, but I'm assuming we won't find you serving food to the hundreds of Portland families living on these here streets.

You've got too many desperate owner's of new or used McMansions trying sell, rent, lease, whatever. I'm seeing a lot of homes going for $2k/mo and more. I mean who the hell would pay $2k/mo in rent?

We negotiated our rent down from $1250 to $1100 on a nice older 2000 sf close in SE home. The land LORD had been trying to sell it for 2 years, but was asking way too much.

there's no way he's getting $1700/mo for that piece of garbage. maybe some college kids or 20 somethings??

Anonymous said...

I too seriously doubt it will rent for $1700. Interestingly, at the time the flipper purchased (pre Home Depot remodel) the house was being pitched as haveing "multiple rentable rooms with a common kitchen". The property was pre-foreclosure at this time too. After the flip ($485), the property was listed as a short sale @ $420. The bank repo'ed and listed it for $399,900 and lowered the price 5 times. Total marketing time: 369 Days.

Anonymous said...

$1750/month to rent that? Not likely. (perhaps if it were "close in") $1350 seems more likely.

been there said...

A 4 bedroom may get close to that much under section 8.

Went on tour of the 2121 Belmont apartments last weekend and the prices seem even more crazy. $3150 for a 2 bedroom plus an additional $100 for parking. Just think what you could get for that much in SF or NYC?

PDX Outsider said...

Anon 6:41, thanks for the additional info. I had no idea it was on the market for over a year. Ouch.

As for the rental price, we'll have to see what the market bears. I wouldn't rent it, but I bet you could get four twenty-somethings in there for 400 a month each. Or a family that wants to be in the Grant/Alameda schools.

But whatever they get for rent, if it's not covering their expenses they're idiots as I don't see any appreciation for years.

Anonymous said...

Greedy landlords? Have you ever been one? It isn't the easy money you think it is.

Were the tenants "greedy" these past years when rents staid flat or decreased year after year while expenses rose?

Anonymous said...

"these past years when rents staid flat or decreased year after year while expenses rose"

waaawaaawaaa...i want my bubble back.

Anonymous said...

Landlords are almost as deluded as realtors. Portland landlords probably thought that we'd see San Francisco rental rates here.

Anonymous said...

"Went on tour of the 2121 Belmont apartments last weekend and the prices seem even more crazy. $3150 for a 2 bedroom plus an additional $100 for parking. Just think what you could get for that much in SF or NYC?"

Couldn't believe that number, so went to the web site. Un-fucking-believable. Granted, that's the high end, but those prices are crazy. I can't imagine anyone moving in there--I'd imagine that anyone wanting to live on the east side would just rent a house for what they're asking.

Anonymous said...

Maybe you should join Land Lords anonymous for some support.

poor little land lord, boooohoooooo

My parents are land lords, but they aren't slum lords like some of the scum bags I've run into in Portland. They actually maintain the property and never raise rents unless it is absolutely necessary.

The law in Portland leans towards the land lords and some abuse the crap of it. You must be one of them.