Hot Bargain Property October 18, 2006
Lender Owned Fixer!
General: San Diego City, 3 bedroom 1 bath. Asking price between $375,000 and $400,000. I'd probably offer about $330,000 to start.
Why you should be interested: Cosmetic Fixer in a quiet neighborhood but close the the freeway and a major mall.
Selling Points: The back yard is fairly nice. Sits on a 7000 plus lot, so there is at least room for additions.
Why I think it's a potential bargain: Between the owner and the lender, this thing has been on the market for over a year. Nobody wants it because it doesn't look good. It needs work. The lender should be ready to talk to anyone.
Obvious caveats: Didn't see any.
Why it hasn't sold already: It was and is overpriced compared to similar properies around it. Unless and until this changes, you're not going to have a lot of folks looking.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $330,000, the property would be worth approximately $530,000. If you held it those ten years before selling, you would net about $250,000 in your pocket, assuming zero down payment. As opposed to renting the $1600 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $140,000 ahead of the renter, after the expenses of selling.
Fact you should be aware of: This should be the cheapest property in the neighborhood.
Obvious way to enhance value or appeal of property: Just updating what needs it. Paint, carpet, fixtures. If you're real ambitious, building another bathroom or an entire master suite would probably be worthwhile.
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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