Hot Bargain Condo March 28th, 2007
Ground Floor Fixer!
General: Central San Diego, 2 bedroom 1 bath. Asking price between $175,000 and $200,000. I think an offer of $160,000 net would get it sold.
Why you should be interested: Two bedroom condo near everything, priced less than most ones.
Selling Points: Smaller units in comparable complexes nearby are actually selling in the $230,000-250,000 range.
Why I think it's a potential bargain: The ugly surfaces are putting people off. It's dated, the carpet and other floors need replacing and the walls need painting. If these folks had the money to do it, they could get a lot more money. They haven't, and so they can't.
Obvious caveats: I'm going to warn you that it's ugly right now.
Why it hasn't sold already: It is ugly. Investors buy this sort of place and sell it for $80,000 profit less $15,000 in expenses.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $160,000, the property would be worth approximately $260,000. If you held it those ten years before selling, you would net about $120,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $1000 per month most comparable currently available rental and investing the difference at 10% per year tax free, you would be approximately $60,000 ahead of the renter, after the expenses of selling.
Fact you should be aware of: Dark inside and needs work!
Obvious way to enhance value or appeal of property: Carpet, paint, modernize kitchen and bathrooms.
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 bargains 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, and there is no reason not to sign such an agreement unless you're an agent yourself.
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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