Housing market

[KnappShack]

The neighboring houses that recently sold have finished basements and I still think the buyers WAY overpaid.

The price to rent one of these houses out would be around $2,500 a month. NOBODY would rent a house for that price in that neighborhood.

Rent is $2500
Estimated Payment is around $1500

The market seems to support a value in this ballpark. If people pay it then they believe the value is there.

Flipper has room to play and it seems like they got a decent price on it to begin with. We'll see what the market says

 

[cyclone4L]

Rent is $2500
Estimated Payment is around $1500

The market seems to support a value in this ballpark. If people pay it then they believe the value is there.

Flipper has room to play and it seems like they got a decent price on it to begin with. We'll see what the market says

$1,600/month for a $45,000+fees down payment.
I would be hard pressed to think the majority of buyers in this area will be willing to put $45k down on this place.
With 3.5% FHA, You are looking at $2,000/month right now..... for a 864 sqft house.

I got my estimate on the rent using the "1%" rule and just my knowledge from my experience as an investor. Btw, Rent on this place was $975/month just 3 years ago.

This place is not worth it.

 

[KnappShack]

$1,600/month for a $45,000+fees down payment.
I would be hard pressed to think the majority of buyers in this area will be willing to put $45k down on this place.
With 3.5% FHA, You are looking at $2,000/month right now..... for a 864 sqft house.

I got my estimate on the rent using the "1%" rule and just my knowledge from my experience as an investor. Btw, Rent on this place was $975/month just 3 years ago.

This place is not worth it.

6109 College is pending. Listed at $204k. 2 bed 2 bath 844 Sq ft.

Not a perfect comp but not a bad one either. It's contingent. Who knows where it ends up, but the market seems to be saying $200k in this area is the going rate.

 

[DSMCy]

$1,600/month for a $45,000+fees down payment.
I would be hard pressed to think the majority of buyers in this area will be willing to put $45k down on this place.
With 3.5% FHA, You are looking at $2,000/month right now..... for a 864 sqft house.

I got my estimate on the rent using the "1%" rule and just my knowledge from my experience as an investor. Btw, Rent on this place was $975/month just 3 years ago.

This place is not worth it.

Did anything happen 3 years ago that might have impacted rental rates (and home values)?

 

[cyclone4L]

Did anything happen 3 years ago that might have impacted rental rates (and home values)?

So I should pay for someone's crappy flip because COVID? What's your point?

 

[wxman1]

So I should pay for someone's crappy flip because COVID? What's your point?

The market has changed is the point.

 

[TrailCy]

I'm constantly annoyed that everyone needs the latest and greatest materials, colors, flooring, countertops, etc. Our house has repainted kitchen cabinets with a new countertop and outdated bathrooms and while it isn't the most up-to-date style it works. It seems like some here won't buy anything that isn't in perfect condition.

Based on here and Twitter X I'm wondering who is buying existing houses.

 

[wxman1]

I'm constantly annoyed that everyone needs the latest and greatest materials, colors, flooring, countertops, etc. Our house has repainted kitchen cabinets with a new countertop and outdated bathrooms and while it isn't the most up-to-date style it works. It seems like some here won't buy anything that isn't in perfect condition.

Based on here and Twitter X I'm wondering who is buying existing houses.

Why should I pay close to if not the same amount for an existing house when I can buy new and generally not have to worry about repairs, gremlins, replacement of major things for a long time. Oh and it's updated and I can make it what I want. Not saying you are in a bad position but IMO if you even think you may be selling in 5-10 years you should be looking at making a plan to make some upgrades and that mechanically things are in order now.

 

[cyclone4L]

The market has changed is the point.

Yea. The point doesn't make sense.

 

[TrailCy]

Why should I pay close to if not the same amount for an existing house when I can buy new and generally not have to worry about repairs, gremlins, replacement of major things for a long time. Oh and it's updated and I can make it what I want. Not saying you are in a bad position but IMO if you even think you may be selling in 5-10 years you should be looking at making a plan to make some upgrades and that mechanically things are in order now.

Because I don't want to live a half hour from work. My 5 minute commute and my wife's 5 minute commute are more valuable to me than updated bathrooms. Plus where I live new houses are $850,000 starting with unfinished basement. So quintuple my commute, double my mortgage payment, and have less usable space to have updated materials?

Here are houses built in the last 2 years with 3 bed 2 bath.

 

[KnappShack]

 

[DSMCy]

Yea. The point doesn't make sense.

Lol what's your counterpoint then? You're just upset with the listing price on a mid-level 3 bedroom in Des Moines, Iowa?

My point is you're quoting a rental rate from 3 years ago to justify an argument for why a home is overpriced, and I'm pointing out there's been a massive shift in the US/world the past 3 years. Covid, stimulus checks, inflation, rising interest rates, etc, etc

There very well could be a correction coming, but based on recent sales and current inventory, this property appears in line with the current market.

 

[Tailg8er]

6109 College is pending. Listed at $204k. 2 bed 2 bath 844 Sq ft.

Not a perfect comp but not a bad one either. It's contingent. Who knows where it ends up, but the market seems to be saying $200k in this area is the going rate.

Not a perfect comp at all, considering that one has a 2 car garage (compared to none), twice as many bathrooms, more BRs, and a finished basement (meaning each of the BR's is likely larger than the one we were discussing). If you're saying $200k seems to be the going rate for the College Ave house, how are you also saying $225k is the going rate for the house with no finished basement & no garage?

The investors got a great deal at $140k, and are trying to squeeze as much out of it as possible. Guess that's capitalism, but I'll be shocked if they get asking (or even all that close to it).

 

[BWRhasnoAC]

Seems low. I don't see many new houses below $300,000.

 

[cyfan92]

1521 61st St, Des Moines, IA 50311 | Zillow

1521 61st St, Des Moines IA, is a Single Family home that contains 864 sq ft and was built in 1950.It contains 3 bedrooms and 1 bathroom. The Zestimate for this Single Family is $220,400.The Rent Zestimate for this Single Family is $1,299/mo.

www.zillow.com

Listed today.
Who's buying?

Yikes... Same neighborhood, more SF and a 2-car garage sold for 184K

1804 57th St, Des Moines, IA 50310 | Zillow

1804 57th St, Des Moines IA, is a Single Family home that contains 907 sq ft and was built in 1950.It contains 2 bedrooms and 1 bathroom.This home last sold for $184,000 in July 2023. The Zestimate for this Single Family is $210,900, which has decreased by $540 in the last 30 days.The Rent...

www.zillow.com

I'm not paying over 180K for that... If anyone knows the flipper selling this and they'll take 180K cash, send me a DM

 

[ianoconnor]

Yikes... Same neighborhood, more SF and a 2-car garage sold for 184K

1804 57th St, Des Moines, IA 50310 | Zillow

1804 57th St, Des Moines IA, is a Single Family home that contains 907 sq ft and was built in 1950.It contains 2 bedrooms and 1 bathroom.This home last sold for $184,000 in July 2023. The Zestimate for this Single Family is $210,900, which has decreased by $540 in the last 30 days.The Rent...

www.zillow.com

I'm not paying over 180K for that... If anyone knows the flipper selling this and they'll take 180K cash, send me a DM

Pink garage adds at least $5k

 

[cyfan92]

Pink garage adds at least $5k

Is that so you'll feel calm getting home from work and errands (Kinnick locker room)

 

[Cyinthenorth]

Wife and I are shopping around for our first, and this seems pretty accurate. Crushing to us is that we watched almost all of our peers buy houses similar to what we are looking at now for $100,000 less 4-5 years ago. We wanted to save up for larger down payment and ended up becoming parents along the way, and then everything boomed on us.

 

[DSMCy]

Yikes... Same neighborhood, more SF and a 2-car garage sold for 184K

1804 57th St, Des Moines, IA 50310 | Zillow

1804 57th St, Des Moines IA, is a Single Family home that contains 907 sq ft and was built in 1950.It contains 2 bedrooms and 1 bathroom.This home last sold for $184,000 in July 2023. The Zestimate for this Single Family is $210,900, which has decreased by $540 in the last 30 days.The Rent...

www.zillow.com

I'm not paying over 180K for that... If anyone knows the flipper selling this and they'll take 180K cash, send me a DM

Not good when the flip needs to be flipped lol

 

[nfrine]

Lots of good buys around the Iowa State Fairgrounds....