Hot Bargain Property April 29th, 2008
Needs a Little Shining Up
General: La Mesa, 5 Bedroom 2.5 Bathroom
What's Wrong With It: The back yard needs some landscaping, and the pool needs refurbishment. The carpet needs replacing, walls need painting, and everything needs cleaning.
Why It Hasn't Sold: That's a good question, given the neighborhood, but most people can't see how easy it would be to improve something like this.
Who it's Not Appropriate For: People looking for something turn-key.
Selling Points: Nice sized back yard, has great views of the neighborhood, and sits in an excellent school district. Public areas have nice open lines of sight, and the kitchen would be very nice once cleaned. This is a great place for entertaining, and there's even an upstairs retreat if you get tired of your own party.
Who Should be Interested: If you're looking to house a large family in a great neighborhood for a reasonable price, this is it! Alternatively, it'd be a good prospect for a college rental.
Why it's a Bargain: What needs to be fixed isn't expensive. Smaller properties in the same neighborhood are commanding higher prices..
What I think I can get it for: $440,000.
Monthly Payment examples: I've currently got a thirty year fixed rate loan available for qualified buyers at 5.75% with just over one point, or 100% VA financing at 5.75% for the same cost.
With no down payment: VA 30 year fixed rate loan at 5.75% (FHA 97% financing) payment $2568, (APR 5.852)
With 20% down: Fully amortized payment of $2054 (APR 5.900).
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 $440,000 the property would be worth approximately $710,000. If you held it those ten years before selling, you would net about $350,000 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 $310,000 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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