Potential Bargain Home July 12, 2006

| | Comments (0)

General: East County, 4 Bedroom 2 bath, asking price range in range of $500,000 to $525,000.

Why you should be interested: This home is on the edge of the urban area. Suburban street, but I felt I was out in the country. Lots of room in the home. Less than 5 minutes to freeway, though, and Mission Valley should only be 20-25 minutes, downtown roughly the same.

Selling Points: kitchen is in excellent shape and the patio area is nice also.

Why I think it's a potential bargain: Over four months on the market, and it's been vacant. There is a loft that really makes the place feel cramped, hampering it's appeal to buyers. It's more square footage, but I think the property would be much more attractive to buyers with it removed, which doesn't look to be difficult. There's also a storage shed which is frankly an eyesore.

Obvious caveats: Backyard is on the small side. One neighbor a couple doors down proved himself to me as the sort of neighbor you wouldn't want to have.

Why it hasn't sold already: Mostly because of the loft. It really makes the living room feel "closed in", but if it was removed, it'd be a beautifully airy place. The storage shed doesn't help, but the loft is the main reason.

IF put zero down and if you pay full asking price (which you won't), your payments (Principal & Interest) would be $3192 with a fully amortized loan (Assumptions: $412,000 1st at 5.75% 30 year amortization fixed for 5 years APR 5.975, 2nd mortgage $103,000 at 8.45% 30 year fixed amortization with a 15 year balloon APR 8.470, on approved credit, not all borrowers will qualify). Right now, I have the five years interest only on the first with the same APR and rate, payment $1974 which means the total loan payments would be $2762)

With a 20% down payment, even if you pay full asking price, payment drops to $2404. ($412,000 1st mortgage at 5.75% rate 30 year amortization fixed for 5 years, APR 5.975, no second. On approved credit, not all borrowers will qualify, and I also have the interest only option above)

If you keep it ten years and it averages only 5% annual average appreciation per year: It would be worth approximately $835,000. Your equity, using the zero down payment scenario described above, would be approximately $405,000. As opposed to a $2400 per month comparable current rental and investing the difference at 10% per year tax free, you would be approximately $255,000 ahead of the renter after the expenses of selling.

Fact you should be aware of: That loft is frightening away buyers, so if you don't remove it, be prepared to deal with people writing this sort of article when you go to sell.

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

Copyright 2005-2017 Dan Melson. All Rights Reserved


Buy My Science Fiction Novels!
Dan Melson Author Page

The Man From Empire
Man From Empire Cover

A Guardian From Earth
Guardian From Earth Cover

Empire and Earth
Empire and Earth Cover

Working The Trenches
Working The Trenches Cover

Preparing The Ground
Preparing The Ground Cover

Building the People
Building the People Cover

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

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

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 12, 2006 1:00 PM.

Potential Bargain Home July 10th, 2006 was the previous entry in this blog.

Real Loans As Of 3:30 July 12th is the next entry in this blog.

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

What I Do

Read My Promise To All My Clients

My Office Contact Information

There are no better agents in San Diego County!

There are no better loan officers in California!

Ask for your free consultation today!

Favorite Loans Available Now

My Listings

Hot Properties!
Email me! danmelson(at)danmelson(dot)com
I want your business!
Unhappy with your loan?
Can't afford your payments?
I can help!
Want to buy smart?
Want to sell smart?
I can do it!
In Default?
Let Me Help!
Want to buy properties in distress?
(defaults, foreclosures and REOs)
Ask Me How!
Bad Credit?
No Down Payment?
Ask Me What I Can Do!
1031 Exchanges
Forward, Reverse, or Partial
I Get It Done!
Should I Buy Now?
Should I Sell Now?
Would It Help Me to Refinance?
I'll tell you if the answer is "No"
I'll help you if the answer is "Yes"
Contact me:
My Office

Want San Diego MLS?

Here's my office's link to San Diego MLS

Enter your email address:

Delivered by FeedBurner

Subscribe with Bloglines Add to Technorati Favorites

Not in San Diego?

My other site is here
Powered by Movable Type 4.21-en