Realty World – Franklin Real Estate Group – Ed Favinger

Only if you can get it for the right price.

While out and about the last few weeks I have been looking at a lot of duplexes in the area.   Some of these properties are in better shape than others of course and the trick is to get into one with the lowest amount of $$$ to get the highest return.

While in my search for good deals, I ran across this duplex that has been on the market for about 2 and 1/2 months.  Check out the picture I have here and tell me this isn’t the nastiest and ugliest property you’ve seen in a while.

Now why do I bring this one up for consideration..? Well this has been on the market for a while (2.5 months)  and when a property is as ugly as this one is, it’s hard for most investors to see the potential here,  so that means the asking “price will be soft”

So why do I like this one..?

For starters it’s a 2 bedroom 2 bath unit on each side.   Each side also has a fireplace, and the family room along with each bedroom has a sliding glass door to the outside back patio or the side yard.

It is also in a pretty decent, although not a great,  location.

In the Video that I have made of this property you will see what I mean.

While each unit has a 1 car garage, who ever owned this in the past decided to add a “covered parking” spot directly in the way of the front door.    It just makes this place look awful.   The lack of any kind of planning or maintenance of landscaping is also a big negative.

I have the “estimated” cash flow figures here based upon a sales price of $150,000.   However, you would have to get this for $100,000 to $110,000 and put about $35,000 to 40,000 more into it in my opinion to get this in a nice “Rent Ready” condition.   This would mean you’d also have to work “big time” on the curb appeal and landscaping enhancements.

Click on the links I have provided below that will give you an idea of what the “cash flow” would be “after a fixup” and a “walk through” video where I describe and show what should be done to this property and I think you’ll get your own ideas of what you would potentially do.

Click here for the Estimated Cash Flow figures.     Click here for a video walk through that I made.

Note: I started to write this blog yesterday and noticed this morning when I got my MLS updates that this property has a “Pending Sale” status.    We’ll keep an eye on it and see if it falls out and if this one does go all the way to sale, I think I’ll come back and visit it and see what the new owners do to get it back into producing rental income.

In the Mean time….?   Make it a great day…!!

ED FAVINGER, BROKER, CRS, GRI, SFR            favinger@rwnetwork.com     916-203-1260

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I wrote about this almost a year ago.

I’m seeing more and more of these Bank Owned/REO properties and the Short Sales that still have existing Tenants in them.  If you think you might want to keep them, here’s what you do.

I’ve  updated the article.   Click Here for What to do…

Make it a Great Day…!

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

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Yea…. Can You Believe That…?

Here’s the description

This is a 3 Bedroom, 2 Bath with a 2 car garage,  fireplace, Central Heat & Air, updated Bathrooms, a Patio and a Covered Deck in the Backyard.

It’s in a great area and would be the perfect First Time Buyer investment because the payments are lower than what you would pay in rent for the same thing.

There’s Always a catch though,  so here it is…

It’s a duplex which means you will have a common wall with a neighbor on one side.  Yea, I know…  Most First Time Buyers want a “detached”  Single Family House for your first home.

Here’s My Opinion for you to think about as to why you should consider a Duplex.

#1. Remember your neighbor will be paying for a big chunk of the payment on your new home if you bought it.

#2. This would be an Investment as well as Home and there are some real tax benefits to consider.  I won’t go into them here, but your accountant or tax preparer can give you lots of information about this.

#3.  You don’t have to live there forever…!  When you look at that “pro-forma” cash flow sheet below that I have prepared,  you will see that your down payment isn’t all that much more than if you were to rent it.   Why not live there a year or so and then rent the side you moved into.   During that time you would have fixed it up some and it would be a great rental to build a “nest egg” or a real estate portfolio.   How much money would you save each month…?

Click here for a PDF file that will give you an idea of what I am talking about.  Click Here for a Video of the Right Side and then I think you’ll see what a nice home this could turn out to be.

Anyway… If you are a First Time Buyer, give this some thought.   There are several duplexes out there that are in Single Family neighborhoods.
Make it a Great Day…!

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

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