Hot Bargain Property September 13, 2006
The Bank's Loss Is Your Gain!
General: Urban East County, 3 bedroom 1.75 bath. Asking price starts near $400,000. I'd start somewhere around $300,000.
Why you should be interested: This is a bank owned property. It needs some significant work, but it's in a nice area. I think a general handy person could do most of the work, but let's get a contractor's bid to be certain. Fix it, and you've got a $480,000 property!
Selling Points: Nice neighborhood, and the house seems solid enough.
Why I think it's a potential bargain: The bank has to get rid of it and not only does it need the work, but the work it needs makes it visually unattractive. Most people aren't interested.
Obvious caveats: I can't prove it has air conditioning. One bathroom is currently not usable.
Why it hasn't sold already: UG-LY! (but fixable!)
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $300,000, and being worth $450,000 when the repairs are complete it would be worth approximately $730,000. If you held it those ten years before selling, you would net about $480,000 in your pocket, assuming zero down payment. As opposed to renting the $1800 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $430,000 (minus the cost of repairs) ahead of the renter, after the expenses of selling.
Fact you should be aware of: One bathroom not currently usable, as I said. I can't prove it has air conditioning.
Obvious way to enhance value or appeal of property: Just cosmetic stuff that's mostly cheap and easy. Water the yard, for crying out loud.
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!
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