This will be the only post for today. More tomorrow, and thank GOD for our readers!
Boomtime asks:
Duggo-…Maybe you can provide further insight on 1330 Chestnut, a 3/2.5 remodelled lower unit condo asking $1.495 mil. It was purchased for $1,025,000 last year as the market slowed. I’m curious if you know what the estimated remodel cost is? Would love to get feedback from people here. I’m guessing 200K remodel… perhaps a $200,000 profit in one year?
Heres the link: 1330 Chestnut.”
Duggo’s Answer:
…hard to say what the remodel costs were, since I’ve not actually seen the place. But only judging from the photos, I’d say the remodel was more like $350 k.. The kitchen appears to be about $100k..with the granite and oh so trendy but requisite stainless steel appliances. I’d say the master bath was $75k.. Nice cast in place concrete sink.. Pretty nice plumbing fixtures, finishes and lighting. The other baths probably $30k each..+-…Then there’s other remodel stuff.. The exterior decks, lighting, flooring, and maybe some electrical and plumbing upgrade.. Anyway, thats how I would arrive at about $350 k.
Anyone else care to add insight? I’m off to write an offer, and of course will report back how it goes…it will be competitive.
–1330 Chestnut [mls]
Went inside on Sunday. Remodel is closer to 200K than 300k. Also went inside when it languished on the market last year and went under asking. Oh why didn’t i buy last year?
If this is going to be about “stump the architect” , I’m not playing. thats not why I come to this site and give my professional opinion.
I gave real, legitimate numbers based on what I know, but have never seen that project.
I’m not here as a free source of architectural information for gamblers and speculators.. i mean realtors.
[Editor’s note: Amen to that! We value your opinion and appreciate your insight.]
i guesstimate the profit on this renovation at ~ $100k max (not worthwile, in my opinion.) even w/only $200k in renovations, holding costs @ the $1.025 purchase price for 1 year +/-, would be ~ 100k. add to the sales cost for the 1.5 mil purchase price, again ~ 100k, and that leaves a profit of about 100k. ok, but i’ve seen better.
TICpimp – How do you forget to back out the cost of ‘renting saved’ for 12 months? I just don’t get it.
Anyway, after a whopping 1 Sunday open house, this property is now IN CONTRACT!
http://sfarmls.rapmls.com/scripts/mgrqispi.dll?APPNAME=Sanfrancisco&PRGNAME=MLSPropertyDetail&ARGUMENTS=-N175697868,-N209742,-N,-A,-N9691264
Let’s see where it goes. I say $1.525 mil.
With that remodeling, I doubt there is any “rent saved”.
John – when you own, you don’t pay rent, you pay a mortgage. When you calculate your return, you have to ADD BACK what you would have spent in rent, renting a similar property. Got it?
At any rate, these sellrs are making a cool $200,000 in 1 yr, paying 15% long term capital gains tax. Not bad at all.