Hot Bargain Property August 17th, 2006
Estate Sale with a Large Lot
General: Urban East County, 4 bedroom 1.75 bath asking price between $475,000 and $500,000. I'd start around $400,000 and force them to argue me up while arguing them down. If 420,000 net didn't get it, I'd definitely walk.
Why you should be interested: This is an older home with cosmetically unattractive furnishings that is nonetheless solid. Mature shade trees in the yard.
Selling Points: This would be a nice place if it didn't look straight out of the seventies. It's got a lot that's over a quarter of an acre and a pool with a couple of outbuildings.
Why I think it's a potential bargain: Estate sale, which means that the current owner inherited it. They have this property, and they want cash. They didn't pay for it, they didn't even fix it. Until they do sell it, it's vacant and eating money.
Obvious caveats: This neighborhood doesn't have a lot of upscale property in it, so there's only so much you can do to profitably update it.
Why it hasn't sold already: Visually unattractive. Straight out of the seventies. Looks basically solid, though, and all the work I can see is purely cosmetic.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $410,000, it would be worth approximately $660,000. If you held it those ten years before selling, you would net about $320,000 in your pocket, assuming zero down payment. As opposed to renting the $1850 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $150,000 ahead of the renter, after the expenses of selling.
Fact you should be aware of: Definitely needs updating, but it looks like everything works. You could update at your leisure, as you have the money.
Obvious way to enhance value or appeal of property: Interior paint. Carpet. Floors.
I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.
Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.
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