Hot Bargain Property March 28th, 2008
Older Cosmetic Fixer!
General: La Mesa, 2 Bedroom, 1.75 Bathroom, 1 optional room
What's Wrong With It: Everything is at least 25 years old. The kitchen is basically original.
Why It Hasn't Sold: Ugly surfaces everywhere. Needs lots of cosmetic work.
Who it's Not Appropriate For: People who want something turn-key.
Selling Points: Great neighborhood, easy freeway access, kids have easy walk to elementary schools. Backyard is large enough that I almost missed the pool! Plenty of room to expand the structure if you desire.
Who Should be Interested: Smaller families, particularly with young children. Long term investors.
Why it's a Bargain: Same old story: People want stuff that's already brand new and beautiful. If you're willing to be the one who creates beautiful, that's an opportunity.
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 5.625% with one point!
With no down payment: VA 30 year fixed rate loan at 5.625% one point (FHA 97% financing) payment $1842, (APR 5.769)
With 20% down: Fully amortized payment of $1474 (APR 5.782).
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 $1800 per month most comparable currently available rental and investing the difference at 10% per year tax free, you would be approximately $230,000 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, Buyer's Agent
Action Realty Inc
9143 Mission Gorge Road, Suite A
Santee, CA 92071
619-449-0723 X 116
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