Hot Bargain Property February 26th, 2007
Cheap Lender Owned Fixer on Great Lot!
General: Urban East County, 3 bedroom 1.5 bath. Asking price between $350,000 and $375,000. I think you might get it for $340,000.
Why you should be interested: Lender owned fixer in established desirable neighborhood!
Selling Points: Sits on a great lot with street access front and back! Nice back yard and covered pati on the side! 2 minutes to freeway, but quiet neighborhood with great schools!
Why I think it's a potential bargain: Fix it up a little, and 3 BR properties in the neighborhood are selling for $460-490. If you want to live there, plenty of room to expand!
Obvious caveats: Kitchen looks like something out of the early 1950s. Laundry set up is weird. Some drywall needs repair.
Why it hasn't sold already: Most folks won't look past the dated facade.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $340,000, the property would be worth approximately $550,000. If you held it those ten years before selling, you would net about $260,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $1900 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 the neighborhood is fifty years old.
Obvious way to enhance value or appeal of property: Update the kitchen and bathrooms, fix the drywall.
This property does not 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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