Hot Bargain Property May 25th, 2008
Lender Owned Beautiful Comfortable Family Home Close to Everything!
General: La Mesa, 3 Bedroom 1.75 Bathroom
Con:
What's Wrong With It: Gets some traffic noise, and the garage was converted to the 3rd bedroom.
Why It Hasn't Sold: People aren't looking for this kind of property in this area.
Who it's Not Appropriate For: Someone looking for a quick profit. This is not a flipper house.
Pro:
Selling Points: Hardwood floors in the main part of the house, tile in the newer part. Kitchen is recently remodeled. Living room is original mid-century, but family room with lots of open light is a more recent addition. Back yard is lush and green.
Who Should be Interested: People looking for a good place to live at a reasonable price. This is a neighborhood that's starting to come up.
Why it's a Bargain: Lender owned, and the work has been done.
Financial:
What I think I can get it for: $370,000.
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 $2159, (APR 5.935)
With 20% down: Fully amortized payment of $1727 (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 $370,000 the property would be worth approximately $600,000. If you held it those ten years before selling, you would net about $290,000 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 $170,000 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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