Hot Bargain Property October 10, 2006 (#2)
Cabin Feel, Needs Update!
General: Urban East County 3 bedroom 1.5 bath. Asking price between $375,000 and $400,000. I'd start around $370,000 because of how dated it is.
Why you should be interested: Flat lot of over a quarter acre with mature trees and a huge garage and workshop! Lots of upscale properties in the area, and you're within about 20 minutes of Mission Valley or downtown!
Selling Points: It has a cabin feel to it! The front yard is very low maintenance, and the back yard is quite lush! Real wood floors!
Why I think it's a potential bargain: This is what $650,000 properties in this neighborhood look like before someone spends $20,000 to $30,000 updating them.
Obvious caveats: Window air conditioning. Put in a modern system if you want to be comfortable - or sell for the best price!
Why it hasn't sold already: Most folks don't see the diamond, only the rough. There has just been a large price drop so I don't think it's going to last long!
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $370,000, the property would be worth approximately $600,000, without taking into consideration updates. If you held it those ten years before selling, you would net about $290,000 in your pocket, assuming zero down payment. As opposed to renting the $1700 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. If you fixed it up right, the difference would be much more.
Fact you should be aware of: The inside of the house looks like something out of the 1940s.
Obvious way to enhance value or appeal of property: Buff the floors, paint the walls, put in a real air conditioner!
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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