Big Bear Bummers

Address: 42363 Paramount Rd, Big Bear Lake, CA 92315

Link: https://www.realtor.com/realestateandhomes-detail/42363-Paramont_Big-Bear-Lake_CA_92315_M27074-54414

Beds/Baths: 3 bed, 2 bath, 1944 squares

Purchase Price (1/2022): $875,000

Asking Price: $875,000

Difference: -$0 (LOL)

Commission (3%): -$26,250

Total Loss: -$26,250

Today’s buyer purchased in January 2022 – two months before the Fed jacked up rates and sent the real estate market into a tailspin – for a whopping $875,000 ($450 per square).

Undeterred by news of falling real estate prices, in December 2023 they listed for a wildly delusional $950,000. That price would have conveniently covered commissions and closing costs and provided a nice little profit for all their “hard work” of making mortgage payments for 23 months.

But that price was a pipe dream that would have made Mario and Luigi salivate. And after a full year with no buyer interest, the price is down to their original purchase price of $875,000.

Think they’ll pull it off?

Fat. Fucking. Chance.

They’re sniffing glue if they actually believe they’ll squeak out of this without a big financial sacrifice to the Poorly Timed Investment Gods. Getting out at basically break even is highly unlikely.

To be fair, this place looks pretty good. I don’t understand using corrugated metal as a backsplash, but to each their own.

Assuming you like what you see, here is the financial overview:

Purchase price: $875,000
Down payment: $175,000
Monthly nut: $5,802/mo (@7%)

Any takers?

Anyone?