Hot Bargain Property April 24th, 2008

By Dan Melson on April 24, 2008 4:45 PM | Permalink | Comments (0)

Showplace Needs a Little Finishing!

General: San Diego, 4 Bedroom, 2.5 Bathroom (1 full, 2 3/4)

Con:

What's Wrong With It: The owners ran out of money and it needs another few thousand dollars to shine! Roof is getting old.

Why It Hasn't Sold: People can't see how easy it would be to finish!

Who it's Not Appropriate For: People with very young children. People who need grass.

Pro:

Selling Points: Very low maintenance yards. Once finished, the property will be low maintenance inside as well. Nice large combination room with good lines of sight. The back yard has a nice pool and spa, and a deck with views over the entire area. Second story separates the master suite from the other bedrooms, and itself has a nice observation balcony. 4th bedroom downstairs would be ideal office, and is insulated enough to be good for day sleepers.

Who Should be Interested: People who love pools, or love entertaining, or both!

Why it's a Bargain: This is a great neighborhood, and with prices such that I would expect properties like this to be selling for about $40,000 higher than the asking price.

Financial:

What I think I can get it for: $410,000.

Monthly Payment examples: I've currently got a thirty year fixed rate loan available for qualified buyers at 5.875% with one point, or 100% VA financing at 5.75% for the same one point

With no down payment: VA 30 year fixed rate loan at 5.75% one point (FHA 97% financing) payment $2427, (APR 5.883)

With 20% down: Fully amortized payment of $1940 (APR 6.020).

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 $410,000 the property would be worth approximately $660,000. If you held it those ten years before selling, you would net about $320,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $2400 per month most comparable currently available rental and investing the difference at 10% per year tax free, you would be approximately $280,000 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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