Wednesday, June 18, 2008

Cute Bungalow in Need of Finishing Touches - 8907 NE Wygant

8907 NE Wygant, MLS # 8013014

A reader sent in this craigslist ad with the comment:

"More wide angle nonsense. And look at this hell pit! It's only 160K but has it come to the point where we excuse such a slum because it's "only" 160K?"

As usual I love the creative marketing:

"In need of finishing touches".

If a full kitchen and bathroom ceiling are "finishing touches", I'd like to see their definition of a fixer!

"Great investment opportunity, seller has just reduced the price significantly. This house is only $15,000 away from being completed. You could hold this as a rental and cash flow. Your payments could be around 1061.82 (based on 30 year fixed, 6% apr and loan balance of $150,000) and this could rent for more once done. At this price you have many options, you could possibly fix it and sell for a profit (comps out over $200,000)."

If 15k will finish it and make it worth $200k, why aren't they doing it? They'd realize an instant $25k profit. Probably because it needs more like $50k to finish it.

Also note the number of times "could" is used. 4 times? And Oprah could give me a Million Dollars. But I doubt she will. You could make money on this, but I doubt you will.

"Perfect for a savvy first time buyer looking to make some great sweat equity.Those are just a few ideas that you could act on, but first you have to see the place and write an offer. Call to schedule an appointment today before this opportunity is gone."

Savvy first time buyer = sucker.

Last sale was for $137k in May. They need $145 to break even, not counting carrying costs and money invested. Did they run out of money, or get in over their head?


David J said...

Oy, that bathroom ceiling is classic. And that kitchen? I've rented some truly seedy apartments, and all of them had better kitchens than that one. I think the "$15K in improvements" assumes the owner is a contractor who can get all his parts and labor on the cheap, and can put in a couple months of work himself.

Anonymous said...

use illegal alien slaves it's cheaper

Anonymous said...

OMIGOD, I laughed. That's not a kitchen. It's a room where somebody dumped a $25 junker stove and fridge.

Opening bid $159--the k is a typo, right?