Hot Bargain Property May 23, 2008
Nicely Maintained Property on Quiet Street!
General: La Mesa, 4 Bedroom 1.75 Bathroom 1 extra room
What's Wrong With It: Living room is on the small side, and kitchen layout is a little unusual.
Why It Hasn't Sold: It was placed on the market over-priced. Now that they've cut the price, people aren't interested because it's been on the market too long.
Who it's Not Appropriate For: That's a good question. I can't think of anyone who couldn't be happy here.
Selling Points: Wrap around side to back yard that's pretty much all usable, with a decent view. Nice light throughout. Extra room would be a good office, and might even be a legal fifth bedroom. Everything is clean and well-maintained.
Who Should be Interested: Nice house at a reasonable price on a quiet street in a desirable neighborhood with above average public schools. What's not to like?.
Why it's a Bargain: As I said, the owners basically shot themselves in the foot by over-pricing it initially. Once buyers have decided they're not interested, it's hard to get them back.
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 5.75% with 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 $2393, (APR 5.931)
With 20% down: Fully amortized payment of $1914 (APR 5.894).
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 $2100 per month most comparable currently available rental and investing the difference at 10% per year tax free, you would be approximately $250,000 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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