Hot Bargain Property August 24th, 2006

| | Comments (0)

Severe Fixer!

General: Urban East County, 4 bedroom 2 bath asking price between $450,000 and $475,000. They're fooling themselves. I'd start around $350,000 net, and wouldn't go much above that.

Why you should be interested: I couldn't enter the property due to uncooperative tenants but the outside is a mess. The yard hasn't been taken care of at all, and it appears as if a tree fell on the roof. The agent said it was a month ago, and the mess hasn't even been swept off the roof. One corner has been destroyed, and I'll bet at least half the roof needs replacing.

Selling Points: This is a real world example of what happens when you have bad tenants. This place is a mess, and is going to need many thousands of dollars in work in landscaping and roof repair. The bright side is that most of which looks doable by a person of average handiness.

Why I think it's a potential bargain: Do that work, and the property will be worth somewhere close to $500,000. If the current owners or their tenants were going to do it, the outside wouldn't be in the shape it's in.

Obvious caveats: I could not enter the premises. The inside could be as even more of a disaster area than the outside, in which case I would offer even less.

Why it hasn't sold already: The are asking too much for the property. Even before the tree fell, it obviously had no curb appeal. It's expired off MLS at least twice. If I were this owner's agent, I'd see what I could do about the landscaping.

If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $350,000, it would be worth approximately $570,000. If you held it those ten years before selling, you would net about $270,000 in your pocket, assuming zero down payment. As opposed to renting the $2000 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $220,000 ahead of the renter, after the expenses of selling. Using a post repairs value of $480,000, this numbers would be much higher.

Fact you should be aware of: The inside could be even worse than I think it probably is.

Obvious way to enhance value or appeal of property: Roof. Landscaping. I'm sure there is stuff inside that needs work.

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. Ask me to find a bargain that fits you!

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

Links to free samples here

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

Rediscovery 4 novel set
Rediscovery set cover
Rediscovery 4 novel set 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

Setting The Board

Setting The Board Cover
Setting The Board Books2Read link

Moving The Pieces

Moving The Pieces Cover
Moving The Pieces 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 End Of Childhood
End Of Childhood cover
The End of Childhood Books2Read link

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

The Monad Trap
Monad Trap Cover
The Monad Trap 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 August 24, 2006 3:52 PM.

Hot Bargain Property August 23rd, 2006 (second today!) was the previous entry in this blog.

Hot Bargain Property Aug 24th, 2006 (second today) 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 2005-2022 Dan Melson. All Rights Reserved