Wednesday Morning: Condo Flip Gone Flop in Irvine

That's a good-looking, brand-new condo complex in the attractive city of Irvine, but according to Irvine Housing Blog, what's going on inside is pretty ugly for one buyer, who looks like a flipper-in-trouble.

By all means, read the whole thing, but here's the story of this roomy (1,850 square feet) 2 bedroom, 2 1/2 bath condo in the Woodbury neighborhood in a few lines:

Asking Price:  $649,800

Purchase Price:  $732,000

Purchase Date: 12/6/2005

More:  "This flipper put $147,000 of his own money into the deal, and he is going to escape with $25,000 if he is fortunate. Leverage is a beautiful thing when an asset is appreciating, but it is an unmitigated disaster when values move in the wrong direction. This guy better sell soon before it becomes a short sale."

Ouch. Comments? Thoughts?
Photo Credit: Irvine Housing Blog

Flippers In Trouble: Irvine Condo

One thing you don't see a lot of -- yet -- in Los Angeles are these wonderfully mean "flippers in trouble" blogs. Take www.irvinehousingblog.com, where you'll find tale after tale of flippers in trouble.

This one at a glance: Flipper pays $560,000 for a 2-bedroom, 2-bath condo in August 2006; is now trying to sell said condo. It was first listed for $539,000, and now $525,000.

Now from the blog: "When the owner of this property bought near the peak in August of 2006, she probably had visions of the fortune she was going to make flipping condos. .. Now, she just wants out. After sitting vacant for six months (and burning a big hole in her wallet), she is trying to sell for whatever she can get. Good luck. Assuming a 6% commission, if she gets her asking price, she is looking at a $53,340 loss."

Comments welcome. Send story tips, tales of other flippers in trouble -- or flippers still making good money -- to Lalandblog@yahoo.com.