Hot Bargain Property February 28th, 2008
General: La Mesa, 3 Bedroom, 1 Bathroom
Con:
What's Wrong With It: There is currently only one bathroom. There are no grassy areas.
Why It Hasn't Sold: Most people want two bathrooms already installed.
Who it's Not Appropriate For: People who need a lot of lawn. People with very young children.
Pro:
Selling Points: Hardwood floors and lots of light throughout! Kitchen is clean, bright, and very usable! California room and pool for entertaining on hot summer days! Private sauna! Very close to elementary school, park, and little league field.
Who Should be Interested: Families with children, particularly if they're older than about five. People who like to have other people over. People who like swimming pools.
Why it's a Bargain: because it doesn't yet have the second bathroom, but it does have an obvious place to put it.
Financial:
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 6%% without points!
With no down payment: VA 30 year fixed rate loan at 6% no points (FHA 97% financing) payment $1919, (APR 6.073)
With 20% down: Fully amortized payment of $1535 (APR 6.073).
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 $250,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $1700 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!
Contact Information:
Dan Melson, Buyer's Agent
Action Realty Inc
9143 Mission Gorge Road, Suite A
Santee, CA 92071
619-449-0723 X 116
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