Cost per unit is sky high
I got this article off of the Sacrament Business Journal this morning and had to pass it on.
The reason I’ve been keen on passing on articles like this is because I’m in the process of marketing the Twin Pines Apartments in Rancho Cordova. Click here for the information I posted a couple months ago about it.
One of the factors some investors look at is “cost per unit”. The list price on this complex is $100,000 per unit because it’s probably a “class C” or maybe “C+”. The Costs Per Unit of the properties mentioned in the article above are about $189,000 and $193,000.
The reporter for the article was quoting Brokers saying those complexes were “Class A” type of product. They have all the latest amenities I presume and built fairly recently. However, they don’t pencil out in the traditional sense.
What they are banking on is the fact that rents are projected to be going up “big time”. That’s because there’s not been any major construction of apartments and entry level homes in this area for a long time and demand for rentals has increased. By the way… this phenomenon is happening all over the country if you were to do a google search for rental rates.
Our property management company Haven Properties has no problem renting up units as they come up and you’d be surprised at the amount of rent you can get if you have a nice place with amenities.
So… if you’re thinking of investing in the Sacramento Residential Investment Market, call me. We specialize in Duplexes, Four-Plexes, small to medium apartment complexes and of course Single Family homes.
Now… in the mean time…?
Make it a Great Day…!
Ed Favinger, Broker, CRS, GRI, SFR, CDPE 916-203-1260 firstname.lastname@example.org
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- What You Need to Know Before Renting Your Home on Airbnb (legalzoom.com)
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- The rental revolution is crushing the poor but also the middle class: 43 million households in rentals, up 9 million from 2005 creating largest 10-year increase in history. (doctorhousingbubble.com)
- Rents are Pretty Much the Only Prices Going Up (Wall St. Journal)