Hot Bargain Property January 23, 2008
Lender Owned Cosmetic Fixer in Quiet Neighborhood!
General: Santee, 3 Bedroom, 1.75 Bathroom
What's Wrong With It: Needs all kinds of minor cosmetic touches, from carpet to paint to fixing a sliding glass door. The living room is a bit on the small side. Former owners put a few large holes in the wall.
Why It Hasn't Sold: Nobody else has found it yet? I spent quite a while looking for a gotcha! and didn't find one.
Who it's Not Appropriate For: People who insist their purchase be beautiful before they see it.
Selling Points: Quiet cul-de-sac in good neighborhood, nice private backyard, solid house with plenty of room for a family. Schools in the area are well above average.
Who Should be Interested: People with a family looking for a place to raise kids.
Why it's a Bargain: The need to do a bit of work is making it unattractive to most potential buyers.
What I think I can get it for: $320,000.
Monthly Payment examples: I've currently got a thirty year fixed rate loan available for qualified buyers at 5.25% for one total point.
With no down payment: Fully Amortized Payment $2034 including financing insurance (APR 6.705), dropping to $1767 when you have 20% equity (APR 5.391)
With 20% down: Fully amortized payment of $1413 (APR 5.404).
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 $320,000 the property would be worth approximately $520,000. If you held it those ten years before selling, you would net about $290,000 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 $240,000 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
CategoriesBargains I've Found
Buy My Science Fiction Novels!
Dan Melson Author Page
The Man From Empire
A Guardian From Earth
Empire and Earth
Working The Trenches
Preparing The Ground
The Book on Mortgages Everyone Should Have!
What Consumers Need To Know About Mortgages
The Book on Buying Real Estate Everyone Should Have
What Consumers Need To Know About Buying Real Estate
Want San Diego MLS?
Add to Technorati Favorites