As we wrote about the return of 3917 18th to the market over in Eureka Valley last month:
Listed for $750,000 last June in need of some TLC but “not a fixer,” the 1,142 square foot single-family home at 3917 18th Street sold for $900,000 last July.
Since power-washed and remodeled at an estimated cost of $91,000 per the permits (new fixtures, appliances, cabinets and furnace), the three bedroom home has just returned to the market as a “remodeled brown shingled Italianate home proudly situated in the Castro” for $1,095,000 and touting a “magnificent gourmet kitchen.”
The sale of 3917 18th Street closed escrow on Friday with a reported contract price of $1,160,000, we’ll let you decide whether it was successfully fixed or flipped.
∙ Flipping (Not Fixing) Over In Eureka Valley [SocketSite]
The low end of my Guesstimate was 1.2. Oh Well…
That was not a crazy overbid. Then again, it’s a flip that came on top of its own crazy overbid. The market is basically confirming last year’s ramp-up and adds a few extra % over the seller’s expectations. Very frothy. Almost bubbly.
assuming 20% down this would represent around a 50% annual return..
has to be pretty good, no?
I had the opposite reaction REpornaddict. While the flipper here has profited, was it enough profit considering the risk?
Gross profit = $260K
– $60K commission
– $90K upgrade costs
– $40K carry
= $70K profit
Not bad though a minor hiccup could have changed the profit to a loss.
Seeing as this condo a block away sold for 1.3m, I’d say the above flipper and buyer of the flip, got a great deal.
http://www.redfin.com/CA/San-Francisco/3873-17th-St-94114/home/12277234
The 17th street property got sold waaaay over the 899K original asked. Quite an epic overbid.
At this level comps are self-fulfilling. You could have used the 18th street house sale from last year to get people to be interested in the 17th street condo, then when the house came back on the market, the 17th street condo could be used to justify the markup. What’s next? Flipping 3873 17th street for 15% more?
This has become to heated that even 501 Noe (#101) has sold for close to the latest asking after getting stuck on the market for 5 months. It was overpriced until the market caught up. It sold for more than the much much more desirable unit upstairs 2 years ago (who needs daylight anyway 😉 )
I can’t wrap my head around the intensity of desperation you can see in today’s buyers. There’s safety in numbers, right?
At first I didn’t understand how this property is only 1142 sq.ft. It looks like a standard 25′ frontage. So if both stories are the same depth then this building is only about 25′ deep. Then I looked at the parcel man. Holy Little Lots Batman! That lot is only ~35′ deep! So the house has more area than the parcel.
Going with MOD’s numbers that’s just under 9.5% rate of return before tax on the $900,000 purchase price. Not stellar but I’m sure if the seller does goes through this again they would have gained valuable lessons for next time. 17th street also gets an upgraded home so I’d say it was a success. Win-win all round…
MoD, from what I understand, there was an original full lot that was cut into 3. The front is the bakery at the corner. This one is 25 foot deep, but a bit wider (35ft?).
Having seen the property, I was originally surprised there’d be a bit of wasted space on the lot (an older curb cut shows the left portion was probably a car port). Then again, it would have required much more investment for what would amount to no more than an added 400sf or so. Would you do so much work for so little? This house has a garage, the required 3 bedrooms and it has very decent light thanks to windows on 3 sides.