Hot Bargain Property February 8th, 2008
General: San Diego, 3 Bedroom, 1.75 Bathroom
What's Wrong With It: The Bedrooms have pergo floors. The second bathroom is essentially original 1950s, if clean.
Why It Hasn't Sold: The bedrooms aren't attractive and the closets are small, but those are easy to fix.
Who it's Not Appropriate For: People who need a lot of lawn.
Selling Points: Quiet street, in desirable neighborhood served by excellent to top notch schools. Modernized kitchen with wrap around living room-dining room-family room. TWO indoor Fireplaces, covered patio with a outdoor fireplace. Main bathroom is modern.
Who Should be Interested: Families with children, particularly if they're older than about eight. People looking for a place to be happy for the rest of their time in San Diego. People who like to have friends over.
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: $365,000.
Monthly Payment examples: I've currently got a thirty year fixed rate loan available for qualified buyers at 5.625% without points!
With no down payment: Fully Amortized Payment $2618 including financing insurance (APR 7.815), dropping to $2101 when you have 20% equity (APR 5.670)
With 20% down: Fully amortized payment of $1681 (APR 5.682).
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 $590,000. If you held it those ten years before selling, you would net about $280,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $1900 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 116
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