Hot Bargain Property November 8th, 2006
Nice Home in the Middle of the City!
General: Central San Diego, 2 bedroom 1.75 bath. Asking price between $450,000 and $475,000. I'd probably offer $390,000 to start with.
Why you should be interested: This is a very appealing home in a good neighborhood. This street has many more expensive homes. It would be easy to make it into a 3 or possibly even 4 bedroom home with another bathroom.
Selling Points: The Back yard is great for entertaining, almost a garden. Large lot goes up towards the top of the hill, and is quite lush.
Why I think it's a potential bargain: These folks are marketing it as a 3 bedroom home, which it would be easy to make it into, but it is not legally a 3 bedroom home, so nobody is going to pay a 3 bedroom price for it. Vacant and on the market for months already, and we're entering a slow time of year to move real estate. If they're smart they'll sell to anything close.
Obvious caveats: I didn't see any. The property is well kept.
Why it hasn't sold already: They are asking a 3 bedroom price for a 2 bedroom home. If they want a 3 bedroom price, they need to spend the money to modify it.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $390,000 (It would be worth about $460,000 if you made it into a 3 bedroom), 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 $1800 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.
Fact you should be aware of: Street in front is moderately busy. Not a main street, but people use it to get through the neighborhood.
Obvious way to enhance value or appeal of property: Do the small amount of work to make that third bedroom legal. If you're feeling energetic, get the permits to make the enclosed patio into a fourth bedroom with its own bath, or an office.
This property does appear to be eligible for a first time buyer Mortgage Credit Certificate provided your family income is not more than $82,800 or $96,600. However, the City of San Diego does not currently have any moderate income funding for their program. Ask me for more details, on this or any other property.
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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