Hot Bargain Property July 24, 2007
Lender Owned Huge Lot with a Granny Flat!
General: Urban East County, 3 bedroom 1.75 bath with a flat in back. Asking price between $450,000 and $475,000. I think an offer of $420,000 net would get it sold.
Why you should be interested: Step out the back door and look at all the room you have! Lot is over a quarter acre in a great part of town, central to everything. You can use the flat for granny or a teenager, or rent it out for extra income!
Selling Points: Already has a granny flat! Trees in the back yard! Quiet street! Great schools!
Why I think it's a potential bargain: It needs some work, but this could be worth a lot more money than it's selling for!
Obvious caveats: Base structure is seventy years old, and there's some deferred maintenance.
Why it hasn't sold already: That deferred maintenance. People want gorgeous now. This creates an opportunity.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $420,000 the property would be worth approximately $680,000. If you held it those ten years before selling, you would net about $320,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $2200 per month most comparable currently available rental and investing the difference at 10% per year tax free, you would be approximately $230,000 ahead of the renter, after the expenses of selling.
Fact you should be aware of: The individual rooms are small by modern standards.
Obvious way to enhance value or appeal of property: All the fixtures are old. Modernize them. A little bit of landscaping would go a long way here.
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 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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