Two units in the same complex

1401 Reed Ave, Units #17 and #18
San Diego, CA. 92109

#17, 2 bdrm, 1 bath, 918 sqft condo
Price Per Sqft: $511
HOA: $183/mo
DOM: 36
Year Built: 1980
1 Parking Spot

#18, 1 bdrm, 1 bath, 645 sqft condo
Price Per Sqft: $557
HOA: $143/mo
DOM: 35
Year Built: 1980
1 Parking Spot

#17:
Purchase Price (12/05): $459,000
Asking Price: $469,000

#18:
Purchase Price (12/05): $379,000
Asking Price: $359,000

This is interesting. They both closed escrow within 3 days of each other, they were both listed on the MLS within 1 day of each other, and they are right next to each other.

Who wants to bet this isn't just a coincidence? Remember how Casey Serin was purchasing multiple properties at the same time so that banks wouldn't know about each other on financing? I wonder if something similar was going on here.

It does surprise me. I mean to sensibely afford a condo for almost 500k, you would need to be a couple with dual income in the top 15% wage earners. I just imagined the top wage earners living in something better than an old 2 bdrm 900 sqft condo. I guess it's all the damn martians moving into the nice places. (or something absurd like rabid housing speculation and too-loose lending practices giving money to the people with crappy credit) Anyway, here are the breakdowns:

For #17:

Purchase Price	$459,000.00
Sale Price	$469,000.00
Association Dues	$183.00
Holding Period(mo)	16
Mortgage Paid	$39,780.00	(6.5% interest only)
Closing Costs	$4,000.00
Property Tax	$7,650.00
Estimated Monthly Rent	$1,350.00
Estimated Monthly Loss	$1,101.23	(if rented)
Estimated Monthly Tax Savings	$696.15	(using 28% tax rate)
Sales Commission	$28,140.00
Total Loss	$39,759.60

And for #18:

Purchase Price	$379,000.00
Sale Price	$359,000.00
Association Dues	$143.00
Holding Period(mo)	16
Mortgage Paid	$32,846.67	(6.5% interest only)
Closing Costs	$4,000.00
Property Tax	$6,316.67
Estimated Monthly Rent	$1,050.00
Estimated Monthly Loss	$965.89	(if rented)
Estimated Monthly Tax Savings	$574.82	(using 28% tax rate)
Sales Commission	$21,540.00
Total Loss	$60,994.27

On a side note, I was looking up some bonds earlier today, and I noticed a bond on the list from Lehmann brothers (home builder) with a 14.5% coupon and a double digit yield (that's how much of your investment is paid back to you every year). Yet, moody gave it an A rating... Now why would any company with an A rating need to offer so much?