Hot Bargain Property October 10, 2006
The Bank's Loss Is Your Opportunity!
General: Semi-Rural East County (30 mins to downtown, 25 to Mission Valley), 3 bedroom 2 bath. Asking price between $425,000 and $450,000. I'd start around $390,000 because it needs work.
Why you should be interested: This lender-owned property has some real potential to be a showplace if you're willing to put in the work! Solid if dated, spectacular views over a valley and up the hills! Sloped lot, but the terracing has already been done for you! There's no end to what you might do with the level areas of this nearly half acre lot!
Selling Points: That view! Nice deck for entertaining! Living room fireplace! Terraced areas behind the house!
Why I think it's a potential bargain: I can see ways to turn this into a showplace if you've got the willingness to work. It's dated and the lender isn't spending any effort to fix it up, so most people won't make offers if they did. But if you buy before someone spends $20,000 turning it into a $650,000 property, you have that opportunity.
Obvious caveats: The roof itself looked okay, but I saw signs of wear on the eaves.
Why it hasn't sold already: It was overpriced for the condition it is in, is now reduced some. It also needs updating.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $390,000, the property would be worth approximately $630,000. If you held it those ten years before selling, you would net about $300,000 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 $200,000 ahead of the renter, after the expenses of selling. If you fixed it up right, the difference will be more.
Fact you should be aware of: Road to property has not been well maintained, but is still flat if bumpy.
Obvious way to enhance value or appeal of property: Update everything! Add a little pizazz to the outdoor entertaining areas!
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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