Hot Bargain Property October 13th (#2)
Short Sale Fixer!
General: Urban East County, 4 bedroom 2 bath. Asking price between $400,000 and $425,000. I'd probably offer about $370,000.
Why you should be interested: This property is getting foreclosed upon. They owe the bank more than the property will sell for. If the bank is smart, they just want out.
Selling Points: It's a four bedroom house with a pool in a suburban neighborhood with good schools, has a sizable back yard, and it can be had for under $400,000.
Why I think it's a potential bargain: Ugly but fixable, and livable right now.
Obvious caveats: It's on a busy street. Pool obviously has a maintenance issue of some sort.
Why it hasn't sold already: This thing is ugly as it sits, and the owner isn't motivated to do anything because they're not going to get any money.
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 $610,000. If you held it those ten years before selling, you would net about $280,000 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 $165,000 ahead of the renter, after the expenses of selling. If you update it right, of course, the difference will be more.
Fact you should be aware of: There's a fairly busy street in front.
Obvious ways to enhance value or appeal of property: Pick up the trash. Paint the inside and replace the carpet. Pour a little more concrete around the pool and fence it. Water the yard.
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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