In the gated community of Corta Bella in Westpark where half of the housing inventory is rented, there are two identical two bedroom condominiums for sale. They would make good rental properties, or starter homes. In 2011, these homes had rented between $1900 to $2100 per month. Both have a two car garage on one floor, living/dining spaces and kitchen on another one, and bedrooms on the top floor. The community has a mix of 83% white collar, and 17% blue collar workforce with a median income of $95,883.

	19 PALMIERI AISLE Irvine, CA 92606	15 BETTONI AISLE Irvine, CA 92606
Listing Price	$360,000	$341,900
Beds/ bath	2 Beds + 2 Baths	2 Beds + 2.5 Baths
Area	1302	1302 SF
Price/ SF	$276	$263
Levels	Three Levels	Two Levels
Year Built	1993	1993
Previous sale	$177,000 in May 1994 $186,000 in Feb 1998 $375,000 in July 2003 $537,500 in Aug 2005 Discount from peak: $177,50	$186,500 in Dec 1994 $571,000 in May 2006 $360,000 in June 2011 (Foreclosed) Discount from peak: $229,100
Floor Plan	Builders Tract Name: Corte Bella Builders Tract Code: CB Builders Model Name: IL Romantico Builders Model Code: B	Builders Tract Name: Corte Bella Builders Tract Code: CB Builders Model Name: IL Romantico Builders Model Code: G
Type of Sale	Short Sale	Standard Sale
Elementary School	Westpark Elementary School (Year Round School) API Rank 9 API Growth: 913 Culverdale Elementary School API Rank: 8 API Growth: 857
Middle School	Southlake Middle School API Rank: 10 API Growth: 916
High School	University High School API Rank: 10 API Growth: 908
Down payment	$72,000	$68,380
Monthly mortgage, assuming 20% down payment, and 30 YR Fixed at 3.875%	$1396.00 Monthly	$1326.00 Monthly
Home Owner’s Dues	$305 + $41 = $346	$292 + $43 = $335
Mello-Roos	$643.63 Annually $53.63 Monthly	$643.63 Annually $53.63 Monthly
Property Tax (1.18681%)	$4272.50 Annually $356 Monthly	$4057.70 Annually $338 Monthly
Fixed Monthly Cost of owning	$2151.63	$2052.63

Westpark Sales History of similar homes since 2006:

2006:

1 Torrigiani Aisle $598,000

15 Bettoni Aisle $571,000

1 Cigliano isle $570,000

3 Palmieri Aisle $550,000

3 Imperial Aisle $530,000

2007:

2 Arese Aisle $550,000

1 Crivelli Aisle $530,000

20 Palmieri Aisle $529,000

3 Crivelli Aisle $484,000

2008:

2 Arese Aisle $485,000

2009:

3 Crivelli Aisle $449,000

2 Crivelli Aisle $443,000

3 Cigliano Aisle $440,000

2010:

1 Palmieri Aisle $445,000

21 Palmieri Aisle $441,000

1 Mozzoni Aisle $429,000

14 Bettoni Aisle $427,000

3 Cuzzano Aisle $410,000

1 Arese Aisle $399,000

2011:

26 Crivelli Aisle $358,888

Over the period of five years, the price of these condos has fallen from $598,000 to $358,888. That is a loss of $239,112, or forty percent loss on the investment. 2012 listing prices are in the $340,000 to $360,000 range. The market is still in correction mode. According to Trulia,” The median sales price for homes in Irvine CA for Dec 11 to Feb 12 was $480,000. This represents a decline of 2.7%, or $13,500, compared to the prior quarter and a decrease of 12.6% compared to the prior year. Sales prices have depreciated 29.4% over the last 5 years in Irvine.”

Would you buy one of these condominiums as a starter home or an investment property? Which one would you prefer? Short Sale or Standard Sale?

Plan G (15 Bettoni) has a half bathroom downstairs, but Plan B (19 Palmieri) has bathrooms only with the bedroom spaces. Plan G has laundry in the garage, while Plan B has laundry with the living spaces. Going by those two, I would prefer Plan G. Would the half bathroom and laundry space matter to you in a three level house?