Foundation Issues

When I started this blog, I was worried that I wouldn't have enough material to keep the blog filled. Then, I see listings like this one.

Address: 14014 Paseo Cevera
Asking Price: $399,000
Property Tax: 1.03% HOA: $0
Income Requirement: $99,750
Downpayment Needed: $79,800
Monthly Cash Burn: $2,570
Ownership Cost: $1,971

Beds:	3
Baths:	2
Sq. Ft.:	1,423
$/Sq. Ft.:	$280
Lot Size:	7,479 Sq. Ft.
Property Type:	Residential, Detached
Stories:	1
Year Built:	1976
Community:	Penasquitos
County:	San Diego
MLS#:	090043017
Source:	SANDICOR
Status:	Contingent
On Redfin:	17 days

Well maintained home in a great location. Walk to schools. Nice floor plan. Close to freeways and shopping. Home has foundation issues. Great opportunity for investors. Property sold "as is". Seller will make no repairs.

Ok, so if it's so well maintained, how come there are no pictures inside the home? The description is such a contradiction in terms, "sold as is" and "make no repairs", yet it is well maintained. So what about those foundation issues - apparently the potential buyer doesn't have a problem with that. What are the chances they will make a cosmetic fix?

Lets look at the sales history:

Aug 14, 2009	Relisted	--
Jul 29, 2009	Listed	$399,000
Nov 01, 1995	Sold	$86,000
Jun 01, 1995	Sold	$77,000
Sep 20, 1989	Sold	$160,956
Sep 07, 1989	Sold	$195,000
Aug 04, 1989	Sold	$95,000

The property is now asking almost 5x the 1995 price. I highly doubt there's been a lot of work done to the interior of the house to justify the 11.5% yearly rate of return. But more interesting is that the price doubled from Aug to Sep 1989, back in the last market frenzy. Then, the price went down to less than the Aug 1989 price in 1995, near the last market bottom.