Page 1 of 2 12 LastLast
Results 1 to 15 of 17

Thread: OT: Cuonzo's House Sells 500k Over Asking

  1. #1

  2. #2
    That is one sweet house!

  3. #3
    True Blue Golden Bear NYCGOBEARS's Avatar
    Join Date
    Jan 2012
    Location
    The Island of Manhattan
    Posts
    24,802
    COL in the Bay Area may be high, but so is the ROI on high end real estate. Sonny and Cuonzo both did well in their short stints in Berkeley.

  4. #4
    He did a lot of remodeling given that he moved on so quickly. It's not like he bought a fixer upper

  5. #5
    Quote Originally Posted by NYCGOBEARS View Post
    COL in the Bay Area may be high, but so is the ROI on high end real estate. Sonny and Cuonzo both did well in their short stints in Berkeley.
    Article says Guonzo purchased for 2.5m and sold for 3m after some remodeling. Once you factor in commission and other sale costs, he didn't make much, if anything.

  6. #6
    Quote Originally Posted by SFBear2012 View Post
    Article says Guonzo purchased for 2.5m and sold for 3m after some remodeling. Once you factor in commission and other sale costs, he didn't make much, if anything.
    He lived in a great house for 3 years at no cost. How is that not making anything? It's free housing!

  7. #7
    We've finally found a reason to attract coaches to Cal- make a killing on real estate and move to the Midwest

  8. #8
    Quote Originally Posted by grandmastapoop View Post
    He lived in a great house for 3 years at no cost. How is that not making anything? It's free housing!
    He likely had a mortgage payment over $10k/ month and taxes of $2-3k/mo, some of each being tax deductible.

  9. #9
    Quote Originally Posted by ColoradoBear1 View Post
    He likely had a mortgage payment over $10k/ month and taxes of $2-3k/mo, some of each being tax deductible.
    Right. He bought for $2.5M. Sold for $3M. Even accounting for costs and the renovation, he likely recouped all of that mortgage and taxes in the sale.

    Assuming 20% down (though, that's a big down payment), his mortgage of $2,000,000 would have had a mortgage payment of $9,548.31 at 4% interest on a 30-year fixed (though he could have gotten much lower on and would have been wise, given his profession, to do a 10-year ARM.

    Regardless, I'll go with the 30-year fixed. Three years later, he'd have paid $240,013.44 in interest, and $113,273.90 in mortgage payments. His property tax bill looks to have been about $34,408.52 per year, for about $103,225.60, per the Assessor's office. I'll make an educated guess of homeowner's insurance costing about $2,000-2,500 per year. That's another $7,500.00.

    That puts his total cost at $964,012.94.

    As you mention, the property tax and interest is deductible, though I believe there is a limit to the interest in the first million on the home? So his deduction is about half the interest ($117,000) plus the tax of about $103,000.00. Putting him in the 39.6% tax bracket, that's a tax savings of about $88,397.34. Putting his total cost at $875,615.60.

    He sold for $3M. I'll assume broker fees, etc. of about 5%. That leaves him $2,850,000.00. He has to pay off his remaining mortgage balance of $1,886,726.12. That leaves him $963,273.90. After taking out his expenditures, he profited $87,658.28.

    I'm not sure how much he put into the home, but as I recall that is deductible at least as to any capital gains. He probably did lose a little bit of money with the renovations. Even if he put $150,000 into the home, that's an all-in cost of $63,000.00 to live in a great house for 3 years. Not bad.

  10. #10
    True Blue Golden Bear KoreAmBear's Avatar
    Join Date
    Jul 2008
    Location
    Somewhere along the Ko`olau Summit Trail
    Posts
    29,287
    Quote Originally Posted by GB54 View Post
    We've finally found a reason to attract coaches to Cal- make a killing on real estate and move to the Midwest
    What do UC? You see a gold mine.


  11. #11
    Quote Originally Posted by grandmastapoop View Post
    He lived in a great house for 3 years at no cost. How is that not making anything? It's free housing!
    His property taxes cost more than my mortgage.

  12. #12
    Loyal Bear Fyght4Cal's Avatar
    Join Date
    Jul 2008
    Location
    Santa Monica, CA
    Posts
    4,448
    Quote Originally Posted by socaliganbear View Post
    Nice catch. Rad pad.
    "Give 'em the axe. Where? Right in neck. There!"
    The California Axe Yell
    The proper response to, "We Want The Axe!"

  13. #13
    Quote Originally Posted by grandmastapoop View Post
    Right. He bought for $2.5M. Sold for $3M. Even accounting for costs and the renovation, he likely recouped all of that mortgage and taxes in the sale.

    Assuming 20% down (though, that's a big down payment), his mortgage of $2,000,000 would have had a mortgage payment of $9,548.31 at 4% interest on a 30-year fixed (though he could have gotten much lower on and would have been wise, given his profession, to do a 10-year ARM.

    Regardless, I'll go with the 30-year fixed. Three years later, he'd have paid $240,013.44 in interest, and $113,273.90 in mortgage payments. His property tax bill looks to have been about $34,408.52 per year, for about $103,225.60, per the Assessor's office. I'll make an educated guess of homeowner's insurance costing about $2,000-2,500 per year. That's another $7,500.00.

    That puts his total cost at $964,012.94.

    As you mention, the property tax and interest is deductible, though I believe there is a limit to the interest in the first million on the home? So his deduction is about half the interest ($117,000) plus the tax of about $103,000.00. Putting him in the 39.6% tax bracket, that's a tax savings of about $88,397.34. Putting his total cost at $875,615.60.

    He sold for $3M. I'll assume broker fees, etc. of about 5%. That leaves him $2,850,000.00. He has to pay off his remaining mortgage balance of $1,886,726.12. That leaves him $963,273.90. After taking out his expenditures, he profited $87,658.28.

    I'm not sure how much he put into the home, but as I recall that is deductible at least as to any capital gains. He probably did lose a little bit of money with the renovations. Even if he put $150,000 into the home, that's an all-in cost of $63,000.00 to live in a great house for 3 years. Not bad.
    Chump change for him. At his current job, if you assume a 40% tax bracket, he'll be pocketing after tax $150k a month! After saving for a few months he could buy a mansion in Missouri all cash.

  14. #14
    The house was discussed here when he first bought it. Most all of the remodeling was done prior to that. In fact, it was so remodeled that, between previous owner and Cuonzo, they changed the number of the street address.

  15. #15
    Golden Bear oskirules's Avatar
    Join Date
    Aug 2010
    Location
    outside the matrix
    Posts
    5,607
    Quote Originally Posted by GB54 View Post
    We've finally found a reason to attract coaches to Cal- make a killing on real estate and move to the Midwest
    Graduate from Cal, buy a home in Berkeley, sell after 3 years and move to southeast Asia or eastern Europe.



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •