Foreclosure in San Diego>Question Details

Jay, Other/Just Looking in 92114

Investment help in San Diego (manufactured or foreclosure house)?

Asked by Jay, 92114 Mon Jan 28, 2008

I'm currently being pressure to buy a home within the next 6 months now. For one, my parents and I have been renting for the past 14 years in San Diego. We came from a poor family and feel really foolish to not buy a home over 10 years ago. All the money spent renting have gone down the toilet without building any equity. In addition, interest rate are the lowest they could ever be and I want to take advantage of this opportunity.

Here's what I'm facing: 1) Putting a new triple-wide manufactured home in a private vacant lot for $220,000 total or 2) Buying a pre-foreclosure home for no more than $250K.

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8
Jay,
I have Kelli Konezny with Willis Allen Real Estate running a list of the bank owned detached homes under $250,000 for you. Her e-mail is konezny@willisallen.com You can call her at 619.994.6778 Let me know if you need more information.
1 vote Thank Flag Link Thu Jan 31, 2008
Jay,
There are more than 250 bank owned (REO) homes including single family detached and attached in the county that are listed under $260,000. A Realtor specializing in working with buyers of Bank Owned properties can assist you. Let me know if you need some names.
1 vote Thank Flag Link Mon Jan 28, 2008
Jay, It has been my experience in the past that manufactured homes are not as easy to resell as "stick built" homes when they are on their own lot, like you mentioned. You may be better to do a "preforclosure" home- you must be ready to wait a while on the answer from the bank. One trick in this situation is to put in offers on more than one property- so that you can move forward on whichever one comes through without losing 3-6 more months down the line.

Let me know if I may be of help in any way- you are right in my neck of the woods where you are thinking of buying.

Patti Phillips
800-680-9133
1 vote Thank Flag Link Mon Jan 28, 2008
Hi Jay,
Another concern with manufactured homes is the financing of it. Many lenders have a lot stricter guidelines for lending on a manufactured home. This could cause issues on the resell of it. It sounds like you would be a first time home buyer? If this is the case, there are still a lot of really excellent first time home buyer programs available for you to take advantage of to purchase a bank owned or short sale property. Short sales (Pre-foreclosures) potentially can take a long time to negotiate with the bank - which gives you very little control over the loan process and locking in rates. Bank owned or REOs will move quickly and be treated like a typical sale. We all wish we bought or bought more 10 years ago so don't feel too bad. If you buy now, you won't look back 10 years from now and wish you had bought. ;> Feel free to contact me if you have any additional questions on REOs or financing.
Web Reference: http://www.MaryPastore.com
0 votes Thank Flag Link Fri Feb 15, 2008
Jay, I am going to be putting on a "guided bus tour" of foreclosure homes on March 1. You may want to be a part of it. In any case, I can certainly help you to find a great home that meets your perameters.

Please give me a call soon if you would like to be a part of the foreclosure tour as our seating is very limited!

Patti Phillips
800-680-9133
0 votes Thank Flag Link Thu Jan 31, 2008
MaryAnn, yes, I have been struggling with this decision for several months now. First off, I'm on a budget and looking to get the highest return on investment 3-5 years from now. I wanted to go with the manufactured home decision but that was before the foreclosure trend. Now that there are many pre-foreclosure and bank repo homes, there seems to be many nice looking (3 bedroom) homes in decent neighborhoods.

Patti, as for the manufactured home - well, it's going to be in a private land/lot and will be constructed as a single-family home. The dealer even said the quality are stronger than an old stick-built home. Yet, there seems to be a stigma if I were to resell it as a single-family home when I reveal it was initially built in a factory.

Tom, I work right between Clairemont and Mira Mesa. Therefore, I am looking for a 3-bedroom home in Clairemont Mesa, Kearny Mesa, University Heights, and/or around the central San Diego area (Golden Hills, North Park, etc). If there's a chance of a nice pre-foreclosure home in the Point Loma area, I would consider that too.

The main thing is, my budget is around $250K for a 3-bedroom home with a potential resell value of $330K to $500K. I'm mainly looking for pre-foreclosure and bank repo homes, as I think I can take advantage of the foreclosure wave.

Fred, I'm really interested in a bank owned, 3-bedroom detached home for under $260K. And I'm also interested in working with a Real Estate agent specializing in bank owned/foreclosure homes. I also just registered on RealtyTrac and would like to find a real esatate agent to help me with the processing of buying a pre-foreclosure homes.

For others please give me more information on how I can get started. I want to buy a home while the interest rate is low and to take advantage of the bank-owned and pre-foreclosure homes opportunity in San Diego.
0 votes Thank Flag Link Thu Jan 31, 2008
hey Jay

I'm guessing that you've already studied your situation far better than we could. I lived in 92114 for a while and had some really nice neighbors. I sense that you have good reasons for your interest in Mira Mesa; maybe you work there? It's a tedious drive from 92114 that takes time, costs money and saps energy.

As far as the resale value of the mfg home- it's iffy but a good question. I was involved with a developer of infill housing like you describe, but I honestly can't give any authoritative data on how they hold their value. Others here may be more help.
0 votes Thank Flag Link Mon Jan 28, 2008
To add more details:
The first option include the 3bed/2ba 1100 square feet manufactured home ( which costs about $110K total (options/setup) and construction cost about $110K (grading, foundation, permits, zoning, driveway, landscape, etc). There are many nice looking two-story houses at the area where I'm going to place the manufactured home (and the city do permit putting a manufactured home there as long the foundation is built as a single-family residence).

The problem is - will it appreciate within 2-3 years? I suppose as long as the house been maintain well, it should appreciate right? In addition, it's in a nice, quiet, neighborhood in a corner lot. Once the construction/foundation is done - the city will recognize it as a "single-family" instead of a manufactured home, once I resell it. The location is in the 92114 area in SE San Diego where I plan to resell for $350K after 3 years. Is this reasonable?

On the other hand, I am interested in buying pre-foreclosure homes in the Kearny Mesa, Clairemont mesa, and especially Mira Mesa area for no more than $250K. I see many listing for under $90K for a 3 bedroom house, how is this possible? My budget is $250K to live in a 3bedroom house in Mira Mesa. However, if I buy a pre-foreclosure home, is this a good investment?
0 votes Thank Flag Link Mon Jan 28, 2008
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