Sacramento Duplexes for Sale – Sometimes They Need a Make Over…

Don’t Be Afraid to Invest in Fixing Them Up.

I know some investors, especially new investors, would like to purchase a Duplex for sale here in the Sacramento area but get discouraged and hesitant after they’ve seen a few of them.    The reason it seems, is they need a lot of work to bring them up to a decent condition because most of them are over 30 years old.

There are those Sellers that have done very little, if anything, to improve them much less keep up with the ongoing maintenance.   This isn’t always the case but it’s pretty common.

Those Sacramento Duplexes for sale that are updated/upgraded get top dollar with multiple offers in most cases.    People forget that construction just about stopped completely in 2008 and continued up until just recently when builders finally ramped up construction of new homes.

What they haven’t built here in large numbers for many years are “Duplexes”.

Since they haven’t I believe there’s a major opportunity for the smart investor.  It’s true even if you are a beginner in Residential Rental Real Estate such as Duplexes.   Why…?   Because Rents are on the rise with the increase in population and not enough housing stock.

There are many good deals out there in my opinion but you have to also be willing to update/upgrade a unit to make it work.   These are long term investments and my advice is to fix them up.

I have a great example here for your review.    We recently closed a Duplex deal at 10823-10825 Alicante, Rancho Cordova.   We kept the tenant on the left side, cleaned up and enhanced their landscaping front and back to add some utility value.  We did raise their rent about $200 more per month because they were not at market.

On the right side…?   Well we did a “make over”.

Below I have two videos that I did for the owner who contracted with one of our vendors to fix up the right side.   One is a “before” video and the other one is the “after”

The first one shows how it looked before… I am narrating and describing what I’m suggesting he do to get it rent ready.

Below is what it looked like BEFORE….

 

Below is what it looked like AFTER…

 

Let me know what you think.   We had a duplex close escrow just around the corner for $320,000 and it was in worse condition than this one here.

If you are hesitant about purchasing a property that needs work and you live out of the area…?  If you purchase through me, I’ll help you run the project at no extra cost and send you updated videos as the progress occurs.

We then will also manage your investment through our Property Management Company, Haven Properties.   We’re just a telephone call or text message away from helping you find the right investment.

In the mean time…?

Make it a Great Day…!

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

 

 

 

Cameron Park Investment Property Coming Back on the Market…?

Two Single Family Detached Homes on One Lot..

tamis cambridge

 

We have a buyer that is having difficulty qualifying for a loan and we’ve placed this one back up on the “Active Release” status.

Once we get another offer acceptable to the Seller, the current Buyer will have 24 hours to withdraw from the contract.

The best part about this deal is that the tenants are already in place and want to stay.

This property is in a great location and unique in that it is surrounded by Single Family Homes.   While it’s located near parks, schools and shopping, it’s also a short distance to the Highway 50 onramp to the El Dorado Hills, Folsom and Rancho Cordova work centers.

Take a peek here at the Cash Flow Figures and click here for more pictures.   If you know of anyone looking for an investment like this, please send them the link to this blog post.

In the mean time…?

Make it a Great Day…!

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

 

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Gaslight Apartments – 15 Units – Folsom, California – Back on the Market…!

All The Inspections Are In….

 

If you have been looking for an small apartment complex in Folsom, then today’s your lucky day.    When we first put this property on the Dean side of Gaslightmarket we did not have any inspections so the buyer who wound up with the deal completed them all and then decided he didn’t want to move forward.

So… today so we are putting this back up on the market looking for a new buyer.

If you Click Here, you’ll get all the information including a short exterior video of the property.  If you would like copies of the inspections, please call me and I would be happy to email them to you.

 

In the mean time…?

Make it a great day…!

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

 

 

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Rent Control – Back On The Radar Screen… Watch Out…!

I’m Just Passing this On….

If you don’t live in California and are reading this from out of state this is a hot button issue in areas like the San Francisco Bay Area and in some parts of Southern California.3d House (XXL)

If you want to see a list of those cities in this state that have rent control laws CLICK HERE.

Now if you are an Investor or even a current Home Owner thinking of renting your place out,  this issue should be a concern because it will affect you.

We just completed a “walk through” inspection of the Gaslight Apartments yesterday. Can you guess what the Bay Area investor asked me…?  “Are there rent control laws here in Folsom”.

He was relieved when I said no.   It was then he commented on how horrible it is in San Francisco and San Jose.

Take a look at this article written by Dan Walters of the Sacramento Bee in today’s paper and get ready to watch some shenanigans on this issue.

Dan Walters: Rent control returns to Capitol as burning issue

Let me know what you think and in the mean time…?
Make it a Great Day…!
Ed Favinger, Broker CRS, GRI, SFR, CDPE     916-203-1260   favinger@rwnetwork.com
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Looking for a Nice Four-Plex in a Good Area…?

It’s Too Bad This One is So “Overpriced”…!

As someone who specializes in the sales and management of residential “investment” real estate I make it a point to go out regularly and preview a lot of property to keep up with the market.

A Four-Plex at 3632 Hallelujah Court, Carmichael came back up on the market just a few days ago for a whopping asking price of $688,000.   That price is lower than the original list price of $725,000.   The scheduled gross annual income they are showing is $51,384 which gives this property a GRM (Gross Rate Multiplyer) of 13.38.  With a GRM that high it’s not going to be possible to get a cash flow without a monster downpayment if you need some financing to complete this deal.

Why they are listing this property for so much is beyond me especially when there’s an exact copy of this unit at 5720 Engle Road that closed escrow last October for $495,000.

Click Here For More Information, incuding a “pro-forma” cash flow analysis on the Engle Four-Plex

The Seller of 3632 Hallelujah Court owns the property “free and clear” by the way.  They didn’t raise the price just to cover an existing mortgage.

If you want to compare them, below is a video of the exterior of the property and the one at Engle.   What do you think…? is the Hallelujah property worth almost $200,000 more…?

My conclusion…? Based upon their “scheduled” income and the GRM established by the sale of the Engle Four-Plex, I think the best the Hallelujah owners can expect as a reasonable offer would be nothing higher than $550,000.

 

Make a comment here and let me know what you think.

 

In the Mean Time…?

Make it a Great Day…!

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

 

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