DC Ranch Scottsdale, AZ - New construction home
November 28th, 2006 by KenricI posted about moving to Scottsdale a few days ago on my post about lease options. I’m signed up for a bunch of investor mailing lists and I go through most of them looking for deals. Most of them don’t suit my needs but this one came across my desk today from CutnDeals.
2006 DC Ranch, Scottsdale, New Build - $759,000 comps for $950,000, 3275 sf (link)
Now this is a little out of my price range. But buying a good deal is always appealing to me. The first step is to find out if this is truly under market. Looking at the comps, I believe that $950,000 is a reasonable comp for this house. However, since it’s a new build, I have to be weary of the builder’s incentives and their potential for drastic price reductions in the near future. Therefore, I can’t just go by resales and the builder’s current price list.
Now let’s say that everything checks out. Then what? How can I make this work? On their website, this is listed as a flip deal. I guess you could try to flip this at $850k and still make $40k on it. I would be buying this home to live in. Is $190k potential equity enough in this market? If so, how can I afford this…
Tomorrow I’m going to try to take a look at the house and go from there. My initial thought is that maybe I can get another $100k of the price. It is the end of the month! Buying this house goes against everything I just wrote about a few days ago, but this is the subdivision I’ve wanted to move into and it surely is a nice area!
Posted in Real Estate | 
Stumble it!
Can you take out a HELOC to pay the monthly mortgage, taxes, etc.? Depending on how long you could sustain that, you may sell x years later for its comp price, you basically have lived in a mansion for free. Better yet, it may appreciate and you make money and lived for free.
By knuckleheaded on Nov 29, 2006
That’s what we’ve been suggesting to Kdog for a while- his fear is the market will continue to fall, instead of stabilize. I think he should do it if it comps right.
By prlinkbiz on Nov 29, 2006
PS- I take full credit for sending you that property to look at. If you buy it, I’ll expect a mocha for my bird dogging services.
By prlinkbiz on Nov 29, 2006
You are a single guy, right? Why on earth would you want such a large house? Do you even know what it would cost to keep it cool in the summer? I think it would be far better to rent a 750 sqft apartment in an upscale complex, and invest the money you would have spent on the house in cash flow producing investments (to find them you may need to go out of state)
By HungryBear on Nov 29, 2006
Hungry Bear,
This house is larger than I’d like, but I’m looking at it from a numbers perspective.
Ironically, this house is smaller than the current one that I live in now. My AC bill is about $150 in the summer. I close off the rooms I don’t use and don’t cool the 2nd floor.
By Kenric on Nov 29, 2006
I like it! Come live in Snottsdale with us! The house is big, but think of all the “Girls Gone Wild” parties you could have there.
Joking aside, I think you might be missing a key item - roommates! You can rent out the rooms of a large house like that and significantly soften your monthly nut. DC Ranch is a gorgeous place and I have heard from my relatives (both work in retail industry as VPs of RE) that the great retail, and thus the great living areas are migrating north up the 101 loop.
By RealOG on Nov 30, 2006
OG, DC Ranch is a very nice area. If I move there I’ll need to get a better car or else they’ll tow mine away! I’m going to take a look at the house on Sunday
By Kenric on Nov 30, 2006
I took a look at the house and its neighborhood today and decided to pass on it. Large homes on very small lots packed together. Not what I want for $750k.
By Kenric on Dec 3, 2006