For as much as flippers annoy use because they drove prices up to such dizzying heights, in a healthy market, they do serve a legitimate function. When a property becomes distressed, a flipper can come in, perform the necessary repairs and make a buck or two. This rehabilitates our ailing housing stock and keeps our neighborhoods in good condition.
This house is at 4741 Lindstrom Ave., Irvine, CA 92604. The property is being offered on Craigslist for 647,000. See virtual tour video here. Zillow puts the zestimate at $782,126 (for whatever that is worth). A comparable property a few doors down just sold on 11/17/2006 for $732,000. The comp is smaller, but updated inside (it was listed as a rental just before the sale at $2,800 a month). The Craigslist ad says “Comps come in at $750,000–$775,000!” (again, for whatever that is worth). In a healthy market, a flipper would buy this property, and fix some of its problems.
This property is a mess, but it does not seem that bad off (I am not privy to any inspection info which might change my opinion). It is the kind of property that benefits from flipping. Anybody here want to put their own money and sweat equity into a property during a declining market? If so, follow the link, you might be cut out to be a flipper, and you might help rejuvinate an ailing property. Five years from now when a lot of our housing stock looks like this one, we will be begging the flippers to come back and fix up things; until then, I will enjoy watching their destruction as much as you do.
Update: Check out the funny new Craigslist ad “$647000 call for showing and make urself some money reselling!”