CFAH

1487 McKinnon Avenue
Six months ago 1487 McKinnon Avenue was listed at $559,000 and advertising “below market value!!” and “wont last!” Today it’s back on the market, bank owned, and asking $369,900. And yes, it’s in Bayview.
And no, we don’t have any idea what happened to 2340 Larkin #2 which thefrontsteps was betting would be sold or in contract within a month but had been on the market for two months and reduced by $296,000 (12.9%) the last time we looked. Readers?
∙ Listing: 1487 McKinnon Avenue (2/1) – $369,900 [MLS]
Reductions On Two Two-Bedrooms Approaching Two Months [SocketSite]

Comments from Plugged-In Readers

  1. Posted by Trip

    Drop the price by about another $100-150k and it’ll remove all bubble effects and be about right. Here is an abridged history of the past sales of this place (notably omitting an August 2005 refi — amount not listed). Sold for $95.5K in 1999 and you can see how funny money took it from there. Looks like Bear Stearns ate it on this one. Also note the similar impact of the last, much smaller, bubble deflating in the early 1990s.
    10/30/2007 $400,500 Trustee’s Deed
    5/3/2004 $353,000 Grant Deed
    12/15/2000 $200,000 Grant Deed
    5/19/2000 $162,500 Grant Deed
    10/25/1999 $95,500 Resale
    6/30/1999 $95,500 Grant Deed
    3/22/1995 $56,885 Trustee’s Deed
    11/16/1990 $123,500 Grant Deed

  2. Posted by S&S

    A “below market value” home in the Bayview is about as appealing as the idea of having to wear Kevlar to live there.
    I think Spencer is rubbing off on me a bit. 😉

  3. Posted by Satchel

    In 2005, I was talking with my dog groomer while he was cutting my dog’s hair. We got to talking about real estate as an investment (he actually brought it up – he knew I had been a buy side trader/pm in my prior life). I told him that SF was in an extreme bubble, a bubble that had gotten so crazy that “people were even buying $600,000 houses in the Bayview”. He seemed to get a little defensive, and went on to explain to me that those were going to turn out to be great investments because “it’s very sunny” in the Bayview, and that ALL of SF was going to be gentrified. I then tactfully (well, consider the source – perhaps not too tactfully!) dropped the conversation – his scissors after all were near my dog’s eyes!
    This was a regular kind of guy, well into his 60s, who really should have known better.
    25 years of practically uninterrupted credit infation have created such deep beliefs about the value of inflated assets and the future path of price inflation that it is actually getting scary to contemplate what is going to happen if our almost 400% total debt/GDP ratio returns to its historical and longstanding (equilibrium?) level of approximately 150%. That’s approximately $35 TRILLION that needs to go to money heaven. Tell that to the next person who says the “subprime problem” is only $200 billion or so. Or that the Fed can “print” enough money to make a difference.

  4. Posted by Jimmy (Bitter Renter)

    Bayview is an atrocious crime-ridden ghetto. Why anyone would pay $600k or $360k or, really, anything to live there is a great mystery to me. In fact, you couldn’t PAY me to live in that ‘hood. (One year living in Boston’s equivalent of Bayview i.e. Roxbury was quite enough of that scene for me).
    $56k (the 1993 price) looks reasonable but even at that price (less than the cost of my car…), I wouldn’t live there. Maybe it would cash flow as a rental given a purchase price of $56k?

  5. Posted by Anna

    “Jimmy (Narrow Minded Renter)” sounds more like it.

  6. Posted by Jimmy (Bitter Renter)

    Whatever you say, Anna. You ever live in the ghetto? I doubt it.

  7. Posted by Radar

    This house, and other houses in Bay View are a good opportunity for renters in SF to move out of SF, and get themselves some good deals!

  8. Posted by DavidQ

    @Radar:
    That house, and the rest of Bayview, is in the city of San Francisco.

  9. Posted by Dan

    This is an interesting crime “heat map” that makes the case that the Bayview might not be as unsafe as some think:
    http://www.teamten.com/lawrence/projects/sfcrime/

  10. Posted by kaya

    Dan,
    While it’s an interesting map, I suspect that there is a lot of under-reporting of crime in this area. I went to some burning man fundraiser party in this area and drove depsite knowing it wasn’t a super idea (but try getting a cab out of bayview in the wee hours). While my car wasn’t stolen, it was vandalized for the hell of it. The repair bill being slightly above my deductible, I didn’t bother reporting anything, and I know a few people who’ve had simialar experiences in the area.
    I could see (at least) a basic quality of life issue living in this area that the map does not reflect. Add to this that there are likely plenty of “disenfranchised” residents in the area (don’t report crimes for a number of reasons), and I’d say this property is still over-priced.
    Sorry to play “spencer’s advocate” on you, Dan, but I think this area would be too much for me 🙂

  11. Posted by iamlovejones

    Thanks, Jimmy, for letting us all know that your car costs more than the initial $56K this property sold for. Not everyone is as fortunate as you, and yes, I have lived in the ghetto….

Add a Comment

Your email address will not be published. Required fields are marked *

Recent Articles