Lela Mazzeo talks about her home financing dilemma while her mother-in-law Deana Dawson sits nearby and daughter Marley plays in the downstairs of the Mazzeos' property. Photo: Sam Hodgsonhttp://www.voiceofsandiego.org/articles/2008/02/21/housing/891rent022108.txtNovice Landlords Pinched Between Outgoing Payments and Rents
By KELLY BENNETT Voice Staff Writer
Thursday, Feb. 21, 2008 |
The two-story house on a large lot in Casa de Oro -- on the less expensive side of the La Mesa border -- has been listed for sale for three months. The Mazzeos haven't lived in it since 2003, when they bought and moved into a home in Imperial Beach. They kept the Casa de Oro house, renting it at first to friends and then to long-term tenants. The last tenants moved out in December 2006, leaving the Mazzeos to 11 months and at least $75,000 of cleanup and renovating before they deemed it sellable.
But even when they had tenants, the rent the house garnered -- $2,000 to $2,100 -- fell far short of the nearly $4,000 the Mazzeos paid each month on its mortgage and upkeep. And since listing it for sale in November for $575,000, they've dropped the bottom of the asking price range to $499,000, less than they owe. They bought this house in 2001 and have accumulated four more properties, including the house in La Mesa where they live now.
This home in Casa de Oro isn't appreciating the way it once did, the way they counted on it doing when they refinanced to buy other properties. And they can't get enough rent to sustain their payments in a down market. "It's just a matter of how many we lose before we get to a place where we're sound financially," James Mazzeo said last Wednesday as he waited for his appointment with a lender rep at a foreclosure clinic. "It's been like a really long rollercoaster -- just down. Just falling, falling, falling."
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But even though the $500,000-range asking price is more than $200,000 more than they paid for it in 2001, selling it for that much wouldn't let them break even, because of the repairs they've made and because they owe about $500,000 on it.How much you wanna bet that these fools bought into the whole Dave Del Dotto "Cash Flow" Get-Rich-Quick Real Estate pitch on the infomercials? How many more of the subprime & equity-loan crash vicitms/perpetrators bought into the same illusion?