Hot Bargain Property November 9th, 2007
Lender Owned With HUGE Bedrooms and Basement!
General: La Mesa, 3 Bedroom 2.25 bathroom.
What's Wrong With It: Floor needs resealing and a divider needs removing.
Why It Hasn't Sold: Kitchens and bathrooms are original from the 1950s.
Who it's Not Appropriate For: Flippers
Selling Points: Location is on a quiet street close to a public park. Great schools in the area. Yard is good sized. 2 car detached garage with bonus room.
Who Should be Interested: Families with children who need room. People with home based businesses.
Why it's a Bargain: It's lender owned and the construction appears solid, if dated. The smallest bedroom is 13x14. You could be happy here for the rest of your life.
What I think I can get it for: $400,000 or maybe a bit less.
Monthly Payment requirements and income requirements: I've currently got a thirty year fixed rate loan available for qualified buyers at 6% for one total point.
With no down payment: fully amortized payment $2722 based upon $400,000 loan. (APR 7.107 includes temporary PMI)
With 20% down: fully amortized payment of $1919 (APR 6.137)
Other financing options are available, potentially lowering the payments, but I'm quoting real loans that real people can get, that will stay exactly the same until you pay it off.
Investment potential: If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $400,000 the property would be worth approximately $650,000. If you held it those ten years before selling, you would net about $310,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $2100 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.
To learn more: Agree that you'll use me as a buyer's agent if you buy it. If you don't like it or don't buy it, no obligation is incurred. If you're not working with someone who will go out and find properties like this, maybe you should consider working with me instead!
Dan Melson, Realtor
Action Realty Inc
9143 Mission Gorge Road, Suite A
Santee, CA 92071
619-449-0723 X 115
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