Big Bear Bummers

Address: 304 Highland Ln, Sugarloaf, CA 92386

Link: https://www.redfin.com/CA/Sugarloaf/304-Highland-Ln-92386/home/4219565

Beds/Baths: 2 beds, 1 bath, 720 squares

Purchase Price (12/2020): $235,000

Asking Price: $330,000

Difference: +$95,000

Commission (3%): -$9,900

Total Gain: +$85,100

I appreciate the confidence here. After buying during the first year of the pandemic for $235,000, our little buddy here decided to list four years later for $95,000 more than they paid – a 40-percent increase in value.

Assuming they can find a buyer at the current asking price, they will walk away with about $80,000 for their troubles. Not too shabby.

There’s only one problem: this property is in ROUGH shape.

Talk about a Big Bear Bummer. I promise you these are the actual listing photos and I have not altered them in any way.

I especially dig their custom hood vent:

And cool buckling floors, bro:

Jesus Hopscotching Christ. Are these people serious? This looks like a great place to hang yourself.

I know it’s a total waste of time, but assuming some moron is willing to pay full asking price here are the numbers:

Purchase price: $330,000

Down payment: $66,000

Monthly nut: $2,486/mo (@7%)

Yeah, no. Nobody in their right mind is plunking down $2,500 a month for this tiny wood-paneled horror show.

I think I know how this will go: They’ll rot on the market for a few months, dick around with a few two-percent price cuts, de-list then re-list, throw in a few more chickenshit price reductions and puzzle at why nobody is interested in buying.

Then at some point they’ll realize they’re not going to win the lottery with this trash pile and will have to make a choice: 1) Pull it off the market until the market is “better,” or 2) Drop the price to something that actually makes sense – namely something starting with a two – and actually sell this hovel.

We have already covered how inherently undesirable Sugarloaf is compared to Big Bear proper, so we’ll see how they decide to play this.

They bought in late 2020, so they should have some equity. But I’m starting to think they overpaid at $235,000. Given the poor condition of this property, they’d be lucky to get that.

My advice: Drop the price aggressively, take what little profit you can get and be free of this property before the city condemns it.