Hot Bargain Property December 11, 2006
Dated Fixer in a Good Central Neighborhood
General: Eastern San Diego City, 3 bedroom 1.75 bath. Asking price between $425,000 and $450,000. I think an offer of $400,000 net would get it sold.
Why you should be interested: This home is on a quiet sidestreet close to the main traffic arteries. Less than 15 minutes to downtown or Mission Valley. Very dated, and not attractive inside to most buyers. Elementary school, middle school, and high school are all easy walking distance without crossing major streets. The neighborhood is noticeably quieter and higher quality than other nearby areas.
Selling Points: It is attractive on the outside. The yard is well taken care of.
Why I think it's a potential bargain: On the market for a long time, and the listing says they had to sell by a date several months in the past (I'd sue my agent if I were them!). For investors, this is near to a proposed renovation zone.
Obvious caveats: Could not get a good look at the roof.
Why it hasn't sold already: Because this is a buyer's market and it's more badly dated than green polyester leisure suits. The average buyer is not attracted to dated properties.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $400,000, the property would be worth approximately $650,000. If you held it those ten years before selling, you would net about $310,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $2000 per month most comparable currently available 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.
Fact you should be aware of: Just that walking in the front door is like hitting a time warp. Kitchen and bathrooms all look basically original.
Obvious way to enhance value or appeal of property: Please redo the kitchen and bathrooms. Buff the hardwood floors.
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. 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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