Hot Bargain Property July 19th, 2006

| | Comments (0)

General: La Mesa, 3 Bedroom 1 bath, asking price range in range of $475,000 to $500,000.

Why you should be interested: This property is vacant and Downtown is about 20 minutes, Mission Valley about the same, and Sorrento Valley not much more. On market five months. Nice hardwood floors, thirties styling, master bedroom has a retreat, almost a second family room you can 'retreat' to.

Selling Points: Corner lot. Place has a low maintenance yard, but no significant grass. Windows everywhere and lots of light. Hardwood floors except for kitchen and bathrooms. Kitchen appears to be original counters and cabinets, but in excellent shape.

Why I think it's a potential bargain: Vacant and been on the market over five months. Nothing stated, but I see some things that have me believing it is an estate sale or something similar. Still got a full house full of furniture in it, for one thing. No private bath for the master suite, which is a real stumbling point with many buyers.

Obvious caveats: Fronts on a street that gets significant traffic at certain times. There is no place for young children to really play. Within a quarter mile of a large school. I'll bet that master bedroom gets significant traffic noise. Finally, if there's air conditioning, I can't find evidence.

Why it hasn't sold already: This is not your standard home with a lawn and white picket fence. Difficult to sell, but for folks whose children are older or busy empty nesters, this would be a good property.

IF put zero down and if you pay full asking price (which you won't), your payments (Principal & Interest) would be $3045 with a fully amortized loan (Assumptions: $393,600 1st at 6.00% 30 year amortization fixed for 10 years APR 6.233, 2nd mortgage $98,400 at 8.35% Home Equity Line of Credit APR 8.435, on approved credit, not all borrowers will qualify.)

With a 20% down payment, even if you pay full asking price, payment drops to $2360. ($393,600 1st mortgage at 6.00% rate 30 year amortization fixed for 10 years, APR 6.233, no second. Also available: thirty year fixed rate loan at 6.25% APR 6.484 payment $2423. On approved credit, not all borrowers will qualify)

If you keep it ten years and it averages only 5% annual average appreciation per year: It would be worth approximately $800,000. Your equity, using the zero down payment scenario described above, would be approximately $385,000. As opposed to a $1700 per month comparable current rental and investing the difference at 10% per year tax free, you would be approximately $91,000 ahead of the renter, after the expenses of selling.

Fact you should be aware of: Older home built about seventy years ago.

Call me. Action Realty 619-449-0723, ask for Dan.

Delicious Bookmark this on Delicious StumbleUpon Toolbar Stumble It!
Please be civil. Avoid profanity - I will delete the vast majority of it, usually by deleting the entire comment. To avoid comment spam, a comments account is required. They are freely available, and you can post comments immediately. Alternatively, you may use your Type Key registration, or sign up for one (They work at most Movable Type sites). All comments made are licensed to the site, but the fact that a comment has been allowed to remain should not be taken as an endorsement from me or the site. There is no point in attempting to foster discussion if only my own viewpoint is to be permitted. If you believe you see something damaging to you or some third party, I will most likely delete it upon request.
Logical failures (straw man, ad hominem, red herring, etcetera) will be pointed out - and I hope you'll point out any such errors I make as well. If there's something you don't understand, ask.
Nonetheless, the idea of comments should be constructive. Aim them at the issue, not the individual. Consider it a challenge to make your criticism constructive. Try to be respectful. Those who make a habit of trollish behavior will be banned.

Leave a comment


Buy My Science Fiction Novels!
Dan Melson Amazon Author Page
Dan Melson Author Page Books2Read

The Man From Empire
Man From Empire Cover
Man From Empire Books2Read link

A Guardian From Earth
Guardian From Earth Cover
Guardian From Earth Books2Read link

Empire and Earth
Empire and Earth Cover
Empire and Earth Books2Read link

Working The Trenches
Working The Trenches Cover
Working the Trenches Books2Read link

Preparing The Ground
Preparing The Ground Cover
Preparing the Ground Books2Read link

Building the People
Building the People Cover
Building the People Books2Read link

The Invention of Motherhood
Invention of Motherhood Cover
Invention of Motherhood Books2Read link

The Price of Power
Price of Power Cover
Price of Power Books2Read link

The Fountains of Aescalon
Fountains of Aescalon Cover
The Fountains of Aescalon Books2Read link

The Gates To Faerie
Gates To Faerie cover
The Gates To Faerie Books2Read link

The Book on Mortgages Everyone Should Have!
What Consumers Need To Know About Mortgages
What Consumers Need To Know About Mortgages Cover
What Consumers Need to Know About Mortgages Books2Read

The Book on Buying Real Estate Everyone Should Have
What Consumers Need To Know About Buying Real Estate
What Consumers Need To Know About Buying Real Estate Cover
What Consumers Need to Know About Buying Real Estate Books2Read

Dan Melson's San Diego Real Estate and Mortgage Website

↑ Grab this Headline Animator

About this Entry

This page contains a single entry by Dan Melson published on July 19, 2006 1:00 PM.

Hot Bargain Property July 17th, 2006 was the previous entry in this blog.

Real Loans As Of 4:40 July 20th is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.

Powered by Movable Type 4.21-en

Enter your email address:

Delivered by FeedBurner

Copyright 2005-2019 Dan Melson. All Rights Reserved