Hot Bargain Property September 18th, 2007
Large Lot with a View!
General: Urban East County, 2 bedroom 1 bath with two optional bedrooms. Asking price between $275,000 and $300,000. I think an offer of $240,000 net would get it sold.
Why you should be interested: Truthfully, the structures probably need to be bulldozed. But it's a large lot with a great view. Over a fifth of an acre, and while it's on a hillside, the lot itself is mostly flat! Once the existing structures are gone, build your dream house in an area with a great view, good location, and good schools.
Selling Points: Large lot with a great view, and the existing structures are ripe for demolition! I'd expect to pay a lot more than this for a vacant lot of this size without the view - and the fact that it already has a residence on it renders it eligible for residential financing!
Why I think it's a potential bargain: Most people will see only the ugly current structures, not what it could become
Obvious caveats: This is not a million dollar neighborhood, and R-1 zoning further limits the possible investment profit. But if you want to build your own middle class home, this is a good place
Why it hasn't sold already: Three words: Ugly Old House
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $240,000 the property would be worth approximately $390,000. If you held it those ten years before selling, you would net about $1800,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $1500 per month most comparable currently available rental and investing the difference at 10% per year tax free, you would be approximately $160,000 ahead of the renter, after the expenses of selling.
Fact you should be aware of: I wouldn't want to live in this house as it sits
Obvious way to enhance value or appeal of property: A bulldozer and a building permit.
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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