Hot Bargain Property February 4, 2008
Cosmetic Fixer on HUGE lot!
General: La Mesa, 3 Bedroom, 1.75 Bathroom
What's Wrong With It: It needs new flooring, a new roof, and paint inside. Matter of fact, the bathrooms and kitchens could use an update also.
Why It Hasn't Sold: Too many properties that are cosmetically unattractive now on the market.
Who it's Not Appropriate For: Those who can't climb stairs.
Selling Points: Quiet street, served by excellent to top notch schools. How many affordable properties on 10,000 square foot lots can say that? As best I can tell, the exterior walls are adobe! Fruit trees, covered patio with cooking area, three cars worth of garage and a driveway that can handle RVs. Two outbuildings that could be used for storage, or made into peachy offices. You could even wall off the interior stairwell and use it for two separate living units, and it appears to be zoned R2.
Who Should be Interested: Families with children. Work at homes and people with home businesses. Property fixers. My own wife was talking about moving when I told her about it.
Why it's a Bargain: This property looks solid, as far as I can see. What you'd have to spend is a fraction of the difference the money would make in value.
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 5.5% for less than one total point.
With no down payment: Fully Amortized Payment $2409 including financing insurance (APR 6.935), dropping to $2101 when you have 20% equity (APR 5.636)
With 20% down: Fully amortized payment of $1680 (APR 5.647).
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 $290,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $2000 per month most comparable currently available rental and investing the difference at 10% per year tax free, you would be approximately $220,000 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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