Hot Bargain Property November 12, 2007
Older Home, Beautiful Inside, with a Large Lot!
General: La Mesa, 3 bedrooms plus 1 optional, 2 FULL bathrooms!
What's Wrong With It: The front yard and facade are not attractive.
Why It Hasn't Sold: No curb appeal as it sits.
Who it's Not Appropriate For: People who need a garage. There isn't one right now.
Selling Points: Central to everything, two minutes to the freeway. Served by some great public schools. Once you get inside, it's nice. The kitchen is modern, as are both bathrooms. The yard is large enough for a garage and a pool, and you'd still have plenty of room for the kids to play.
Who Should be Interested: People looking for a place to raise a family.
Why it's a Bargain: It's been on the market quite a while, and it really is worth the money - but the front yard keeps scaring people away.
What I think I can get it for: $370,000.
Monthly Payment examples: 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 $2218 plus $299 temporary PMI based upon $370,000 loan. (APR 7.110 includes temporary PMI)
With 20% down: fully amortized payment of $1775 (APR 6.152)
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 $370,000 the property would be worth approximately $600,000. If you held it those ten years before selling, you would net about $285,000 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 $190,000 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 116
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