Sacramento Duplexes For Sale – Not Much Inventory – Prices Up

Yea… There’s Not Much To Choose From, But,  Rents Are Up Too….

If you are curious about the market regarding Sacramento Duplexes for Sale, I’ve got some recent stats/graphs for you.   We’re still in a Seller’s Market and I think you’ll see the graphs below make the point.  I think they will also change a bit next month.

If you have ever read any of my past articles, I’ve always said  “A nice well maintained Duplex will sell for a pretty good price now with multiple offers”, or something to that effect.   The Duplexes that don’t sell quickly generally have these characteristics.

  • Poor or “Fair” Curb Appeal and General Appearance – Lack Pride of Ownership.
  • Rents that are lower or much lower than Market Rent.
  • Price is not reflective of the above 2 conditions.

Low Rents – Updates/Upgrades:

If you are thinking of Selling your Duplex or for that matter any kind of Rental Investment Property, you might think about upgrading/updating the property a little.

Having the same great tenants over several years time does not translate into a much better positive outcome in the sale if the rents they are paying are only about 1/2 of what the same unit would rent for today.

Generally if you aren’t keeping the rents up, you aren’t maintaining the property because you don’t have the cash flow.   Tenants know when they are getting a good deal.

However, if you are a buyer and make an offer on one of these types of properties I’m describing above, you’ll have to take into account the Updates/Upgrades you might be faced with to get the “higher rents” the Seller says you can get.

We recently were in escrow on a Rancho Cordova Duplex the Seller has owned for almost 30 years.   Both units were in need of work.   One of the units had 6  people living in a 2 bedroom 1 bath unit.   Both units were paying only $800.00 per month when the “market rate” is in the $1,300 to $1,400 range.

The deal fell through because the Buyer wanted an adjustment in the price to reflect the deferred maintenance and the low rents.   The buyer would have to get possession by giving a 60 day notice to terminate tenancy before being able to start the “rehab” process.  The unit would then be vacant for another 30 days at least.   There was too much to over come… Low Rents /Poor Condition/High Price.

Let me know what you think of these stats.

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NUMBER OF UNITS FOR SALE – SOLD- PENDING

Graphics list vs sold 6-10-19________________________________

LIST PRICE TO SALES PRICE RATIO – AVERAGE DAYS ON MARKET

List Price to Sales Price Ratio

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If you are thinking of Buying a Sacramento Duplex you want to take into account not only the condition, but the existing tenants and their current rent as well.   As long as you are aware of these issues, you’ll make a better informed decision on whether to go through the deal or not.

In the mean time…

Make it a Great Day…!

Ed Favinger, Broker, CRS, GRI, SFR  – 916.203.1260 – favinger@rwnetwork.com

Related stories

Sacramento had state’s 2nd highest rent increase. But there’s good news for tenants too Sacbee.com

Thinking about moving to Sacramento…?  SFGATE.COM

 

High Costs of Rent in Sacramento Turns Renters into Home Buyers

Old News To Us in Real Estate.

There have been several articles all over the print and social media about the rising rental rates here in the Sacramento Region.   It was only a matter of time before Renters would turn into Home Buyers because it’s cheaper.

Our Property Management Company with approximately 400 total units of various configurations has only 7 current vacancies with, we think,  another 7 coming up within the next 30 days or so.Hand writing the text: Buying a Home

So it’s no surprise to those of us who work in the field everyday when we hear another news report about the market.

So after listening to the morning news on KFBK I got another news story from KCRA Channel 3 talking about the same thing.

Millennials are beginning to buy homes because Rents are so high here they’ve now begun to figure out it’s a better deal to Buy and own.

I’ve noticed that a lot of the Sacramento Duplexes being financed by FHA loans which are only given to Owner Occupied Buyers.. another trend in my opinion.   I’ve written before about buying a Duplex to live in one side and rent the other.  No surprise to me of late seeing more people do just that.

If you are currently a renter and would like to be a Home Owner, contact me today and I’ll get you started on your way.

In the Mean Time…?

Make it a Great Day….!

Ed Favinger, Broker, CRS, GRI, SFR     favinger@rwnetwork.com  916.203.1260

Related Articles:

This is the Number 1 obstacle keeping people from buying a home CNBC

Multi-Family Residential a Favorite for Investors

Late Cycle Real Estate Investing Strong

I thought I’d share an article from Bisnow.com.   You can subscribe I think for free and they will send you information to your inbox with Real Estate and other business news.

The reason I thought I’d share this is because many people I talk to,  including other Real Estate professionals, have the feeling the Real Estate Market is slowing down.Late cycle investing Bulls and Bears

However, the BisNow article points out the trends just before the great recession and the trends of today, especially when it comes to Multi-Family Residential,  are much different.

I share the optimism of the writer of the article because it applies to all residential income properties in this area at least, in my opinion.  Those types of properties include Single Family Homes, Duplexes, Four-Pelxes and Apartments.

They just can’t build enough units but they are trying.

Click here for the BisNow article.

Click here for a local Sacramento Business Journal Article regarding new construction of Apartments in the Region.

So if you’re on the fence about Investing in a Duplex, a Four-Plex, a Single Family Rental or an Apartment complex, please contact me today at 916.203.1260 or drop a note my way via email at: favinger@rwnetwork.com

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker

 

New Laws for 2019 – If You Are An Investor – Pay Attention

State of California Always Adding New Laws – Catch Up by Reading Below.

I receive an email newsletter from time to time from the BPE Law Group.   Every year we get a slew of new legislation out of the State.   You just have to keep up or you’ll be in trouble when it comes to owning Rental Real Estate.Desert road

I thought I’d share BPE’S most recent article with you.

I think you can sign up for their updates as well by emailing them at:

kbdunnagan@bpelaw.com.

 

CLICK HERE FOR A COPY OF THEIR MOST RECENT ARTICLE.

If you are looking for an Investment Property like a Duplex, a Four-plex, a small Apartment complex or even a Single Family home, please call or you can send a text to me at anytime at 916-203-1260.

We specialize in the Sales and Management of Sacramento Residential Investment Properties.

Make it a Great Day…

Ed Favinger, Broker, 916-203-1260   favinger@rwnetwork.com

 

 

Sacramento Duplexes For Sale – Bread & Butter Income Units

Rents are Low – But These Still Might Work…!

While there aren’t too many Sacramento Duplexes for sale on the market these days that I like a lot, there are some Duplexes I think might work out for the right investor.

These Duplexes for Sale are what I call “Bread and Butter” type of Investments.Hand writing the text: Rental Income

 

Take a peek at the information I have below here.   I’m profiling these Duplexes for Sale based upon their current situation and what I think the ultimate sale price should realistically end up being.

I will profile other Sacramento Duplexes later so come back here from time to time.

If you are looking for a Residential Income Investment like a Duplex or a Four Plex, please send an email to:  favinger@rwntwork.com or you can call me at anytime at 916.203.1260.

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker