Hot Bargain Property September 14, 2006
Bank Owned Fixer, Close to Everything!
General: Urban East County, 3 bedroom 1.75 bath. Asking price between $425,000 and $450,000. I'd start somewhere around $320,000 net.
Why you should be interested: This is a decent single family home in a good area and within 2 minutes of two freeways. Lender Owned, which means they need to get rid of it.
Selling Points: Spacious kitchen. Shade trees in yard, and nice grass.
Why I think it's a potential bargain: The lender owns this and it needs lots of cosmetic work. Pool needs cleaning, the carpet is gone, there is some drywall that needs to be installed. The average buyer who doesn't know what they're doing will run away - making opportunity for those who do.
Obvious caveats: Obvious fixer work. I also heard traffic noise outside in the yard.
Why it hasn't sold already: The visual condition of the interior is a push away.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $320,000, and being worth $450,000 after repairs, the property would be worth approximately $730,000. If you held it those ten years before selling, you would net about $460,000 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 $400,000 ahead of the renter, after the expenses of fixing and selling.
Fact you should be aware of: This place is ugly on the inside, but I didn't see any strctural problems. You want a building inspector, of course.
Obvious way to enhance value or appeal of property: Carpet, drywall, clean the pool!
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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