Another Great Deal at Parkloft

Posted on September 12, 2011 | by Denny Oh

parkloft condoThe last downtown San Diego real estate deal I mentioned was a 2300 sqft, 2 story loft at Parkloft that was priced at $700K. Well, that condo is in escrow and it probably sold for a bit over $700K – I’ll guess $765K.  Luckily there’s a new REO that came on the market a few days ago.

This new deal is on the 4th floor and faces east, over 9th Ave.  It’s 1631 sqft and has two full bathrooms(there are no “bedrooms” at Parkloft – it’s just one big open loft).  It’s currently listed for

$434,900(only $266/sqft), but was listed for $1,024,000 back in 2007(it originally sold for $603K in 2003 from the developer).  As you probably know, most real estate in San Diego is selling at prices similar to what they sold for back in 2003, so going $168,100(28%) lower than the 2003 purchase price is a pretty good deal.

Aside from the incredibly low price, I love that this unit is very practical.  It has a great layout that makes sense.  The condo comes with two side by side parking spaces and it has a balcony(**Correction – there is no balcony on this unit.  There are two sets of double doors that open up, but there’s nothing to step out onto, aka, Juliet balconies).  What I also really like is that if someone like myself (a single guy) bought this, I could easily continue to live in it for several years even if I ended up falling in love, getting married and had a baby tomorrow(well 9 months from tomorrow).  And once it was too small, or too whatever, I could easily rent it out and cover my costs.

At $435K, with 20% down, my total monthly payments would be around $2800(based on an 80% loan at 4.5%, including the HOA dues and property taxes).  This does not take into account that I’d be able to write off a portion of my payments either, which would lower them by a few hundred.

I’ve learned to be much more conservative with my money, so I’m always thinking about back up plans and exit strategies.  With properties like this, it makes it much easier to buy and not have to worry about what if I get have to move for work, or what if I get married, etc.  Especially since my goal is to buy and hold properties forever.

The only negative I see with Parkloft is that it doesn’t have a pool or hot tub.  Aside from that, I really love this building.  Please let me know if you’re interested in this condo, or any others in San Diego.  This will not be on the market for much longer.

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4 Comments

  1. Bob says:

    Denny:

    This does look like a good deal. Can you confirm that there is a balcony? That makes a BIG difference in these downtown units. I looked at the floorplans and it doesn’t show a balcony – just 2 pairs of french doors that open to the street without a balcony. Maybe I’m looking at the wrong ones?

    How much do you think it would cost to put some closets and good looking light fixtures in there – it looks like the owner stripped the place when he moved!

  2. Denny Oh says:

    Bob – I went to the unit today and you’re right – there is no balcony. There are two sets of double doors that open up, but no deck space. The appliances are there, but no closets. You could buy wardrobes/closets for several hundred dollars, or probably build out a custom closet for $5000 or so. I can get bids if you want, but that’s my guess.

  3. Bob says:

    Thanks Denny. It seems that Unit 408 is a good deal, but 1002 and 1003 were GREAT deals at those prices as those 2 are on upper floors, with better views and were more ready to move in and occupy.

    Did the listing agent give you any information about the status of the repair of the bathrooms in Unit 408? That is another thing that will either be a hassle after you buy the unit or will force you or the tenant to move out while they are being re-done.

    It seems like the better deals downtown are in the $600,000 – $1,000,000 price range. What do you think?

  4. Denny Oh says:

    Bob – I haven’t been able to find out about the bathrooms, but my understanding is that all the money has been allotted to each unit(if they haven’t already made the repairs). I’m not sure most deals are in the $600K-1M range, but there’s slightly less demand as you go higher in price, so it may make sense.