Hot Bargain Property April 19, 2007
Half Acre Lot in Highly Desired Neighborhood
General: Urban East County, 4 bedroom 1 bath. Asking price between $375,000 and $400,000. I think an offer of $390,000 net would get it sold.
Why you should be interested: Half Acre lot in a highly sought after neighborhood - could conceivably be approved for a split. Most of the neighboring homes are at least $600,000 and on smaller lots
Selling Points: The value of this property is in the lot and the location.
Why I think it's a potential bargain: Half acre lots at this price are rare!
Obvious caveats: Waiting on Certificate of Compliance, and the house is old.
Why it hasn't sold already: It's not modern or beautiful. But the lot is worth the money.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $390,000, 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 (not including increased value from updates!), assuming zero down payment. As opposed to renting the $1700 per month most comparable currently available rental and investing the difference at 10% per year tax free, you would be approximately $130,000 ahead of the renter, after the expenses of selling.
Fact you should be aware of: Lot was split 50 years ago and has not yet been certified legal.
Obvious way to enhance value or appeal of property: I'd just start over, completely replacing the house.
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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