There is a new house listing in Berkeley and it is likely something you have never seen before.
The 4-bedroom, 2-bathroom home with nearly 2,000 square foot, is located in one of Berkeley’s most desired neighborhoods. It is currently on the market for about $395,000. But there is a catch.
“it’s a risky investment for sure, but it is a great location,” said JeAnna McGregor, who lives nearby.
The Zillow listing holds nothing back. The house located on a 4,800 square foot lot features a great location near Berkeley’s Gourmet Ghetto neighborhood but that’s where the perks stop.
According to the listing, the building has had no maintenance done since 1974, both the roof to the sun room and garage have collapsed. The home is also leaning off the foundation, there is an active water leak that’s been ongoing for a decade.
The home also comes with a 83-year-old tenant, who will live rent free for the duration of his lifetime.
“That is the kind of property a small developer like me really likes,” said Berkeley resident Dan McDunn. “Because it has opportunity, it’s too far gone for a fix and flip-type person. It’s definitely beyond the capacity of a user, occupant which usually presents a good opportunity.”
The house is appraised at $395,000 in an area where homes sell for around $2 million. According, to a home inspector quoted on the listing, the home should be torn down.
The house also has an additional tenant who pays rent. McDunn, who is also a developer 10 years ago, said he was interested in the property and still sees its potential.
“No matter what the market conditions are this location will be a hot commodity and sale quickly. The economics support a higher price,” he said.
The house will not be on the market for long. As of Monday, the property is already pending sale. A local developer plans to restore the home without tearing it down.
Some nearby residents said that the roof was redone in January and they are supportive of the man staying. They hope whoever takes over the property will be able to restore it to its original beauty.
“The neighborhood, I think is glad that something is happening because it’s a shame to have a house like that,” said Berkeley resident Jeanna McGregor.
Source: NBC Bay Area
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