Hot Bargain Property June 20, 2007
Cheap Four Bedroom Fixer!
General: Urban East County, 4 bedroom 1.75 bath. Asking price between $375,000 and $400,000. I think an offer of $370,000 net would get it sold.
Why you should be interested: When is the last time you saw a four bedroom house over 2000 square feet this cheap within 15 minutes of everything?
Selling Points: 4 bedroom 2000 square foot house on 7000 square foot lot. No HOA.
Why I think it's a potential bargain: I won't mince words: It's ugly right now. The average buyer won't look past the unappealing surface. But if you're willing to spend some money fixing it up, there's a smaller 3 bedroom place down the block on the market for nearly $200,000 more. It won't take nearly that much to fix.
Obvious caveats: It's got a cracked foundation, and most people think that's a bigger deal than it is in cases like this.
Why it hasn't sold already: Very few people know how to look past ugly.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $370,000, the property would be worth approximately $610,000. If you held it those ten years before selling, you would net about $280,000 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 $180,000 ahead of the renter, after the expenses of selling.
Fact you should be aware of: We'll want an engineering report during the contingency period, and those cost about $600 or so.
Obvious way to enhance value or appeal of property: Fix the foundation. New paint, new carpet, new appliances. Update the 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 am looking to represent buyers, so 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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