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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A Sacramento Duplex Flip… Making a Profit With Minimal Work…!!

A Quick Turnaround  & They Really Didn’t Do Much…!

The Duplex at 9234-9236  Corinthian Cir, Sacramento was listed in March of last year as a Short Sale that was finally approved and closed escrow just a couple of weeks ago on the 8th.

During that long period, the property temporarily came back on the market last November and I was able to get in and look at one side but not the other because it was occupied by an “uncooperative” tenant.    When it came back on the market it was “Subject to a Release of Contract” from the current Buyer which is usually a formality but must be obtained before they can really accept another deal.

I guess the original buyer was able to hang in there by resolving what ever issue caused the property to come back on the market.  After about 9 months of  a long short sale process, they finally close the deal at $190,000.   A Buyer I represented made an offer I think for about  $220,000 when it popped back up temporarily.

If you are a flipper you have probably heard something like this before, but for you folks just starting out…?   “You Make The Money On The Buy, Not The Sell”.

In other words you have to “buy it right”.

Today that Corinthian Duplex is a “Pending Sale” effective  January 23rd after just 9 days on the market.

Folks, all they did to this property was clean out what ever trash was left over from the previous tenant.   I don’t believe they did anything more than that.

The 1st video below is from last November when I previewed it and sent this to an out of the area Buyer.   The 2nd video was done about a week ago of the other side that I was not able to get into last year because of the tenant.

LAST NOVEMBER

 

JUST A FEW DAYS AGO

 

Let me know what you think…  If it was group I was involved with, we would have fixed this up and help elevate the neighborhood values more.    I will keep you posted as to how much they got for it when it is reported as a Closed Escrow and I’ll follow up to see what the eventual buyer of this Duplex does with it.

In the mean time…

Make It a Great Day….!

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

 

 

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The Gaslight Apartments, Folsom, Ca 15 Unit Complex For Sale…!

Posted on the Market on January 15th….

So Far…?  6 Offers…!!

For those of you that don’t know me, I work primarily with Residential Investment Property and Investors.   We were fortunate to get the opportunity to do the Property Management  for the Gaslight Apartments in the summer of 2012.   The Apartments consist of,  (9) 2 bedroom 1 bath and (6) 1 bedroom 1 bath units.

The property is well located in Folsom, near City Hall, the new Library, City Park and Zoo.   It’s a corner lot location with a single family home on one side and Theodore Judah Elementary on the other.

Since the time we took over, we’ve increased the owner’s Monthly income  over $1,000 by very modest increases in the rents of these long time tenants, some of whom had not seen a rent increase in 18 years.

While Gaslight doesn’t have all the latest amenities, it does have Covered Parking and a Community Pool.

The Owner’s have decided to move on after owning this for approximately 20 years or so.

There’s a lot of “upside” on this one for the right owner…!

Click Here for a Proforma Cash flow analysis based upon Current Rents

Click Here for a Proforma Cash flow analysis based upon another modest increase in Rents

Click Here for a Rent Roll that shows the current rent, laundry income & potential rent.

As of January 23, 2013 this property is still available, so if you are interested let me know.

 

In The Mean Time…?

Make it a Great Day..!

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

 

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Looking For a Real Estate Investment That Carries Itself..? Check These Out…!

We’ve got recent price reductions too…!

 

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If you have been looking for an “investment” type of property and have followed this blog site for any length of time, you know I’m a big fan of Mulit-Unit properties.

The reason is most of the time you’ll never have a vacancy of 100%.

Is a Four Plex in your future…?

Take a peek again if you haven’t already at this Four Plex at 5544 Keoncrest Circle, Sacramento which consists of all 2 bedroom 1 bath units, central heat and air, fireplaces in 3 of the units.  Each unit gets a Garage Space and garage door opener.   There is an “on-site” laundry that is free to use for the Residents of this building.

Click Here to get all the information including a video of one of the units

How About A Duplex…?  We got several.

1.  955-957 Woodshire, Sacramento – 2 bedrooms, 1 bath, 1 car garage one side & a 2 car garage on the other – Was priced at $289,000… Now Reduced to $259,000 – Located in a Pride of Ownership area consisting of primarily single family homes.   Rents could be raised some on this one.

2.  7226-7228 Oconee Court, Citrus Heights, Ca – 2 bedrooms, 1 bath, 1 car garage each side – Priced at $259,000 – Located on Quiet Cul-De-Sac Street in a great area near Parks, Schools and Shopping.   Great tenants on this one and both want to stay.  On month to month and could have rents raised some.   One side has been totally remodeled with a new kitchen.

3.  4713-4715 Greenholme, Sacramento, Ca – 2 bedrooms, 1 bath, 1 car garage each side – Reduced price at $204,950.  Fully leased with great tenants.

4.  4717-4719 Greenholme, Sacramento, Ca –  2 bedrooms, 1 bath, 1 car garage each side – Reduced price at $204,950.  Fully leased with great tenants.

NOTE:  Someone would be smart to buy both of the Greenholme properties since they are side by side. 

5.  4548-4550 Zachary Way, Sacramento, CA – 2 bed/1 ba/1 car gar & a 2bed/2ba/2 car Garage.  Occupied by long term tenants… one over 11 years.   Priced at $219,000.   OWNER IS WILLING TO CREDIT $5,000 for new paint & carpet.   This property has had the same tenant on once side for almost 18 years and the other side for about 10 years.

AND FINALLY…

6.  Two Houses above the valley fog on One Lot in Cameron Park, located at 3825-27 Cambridge Road.  CLICK HERE for pictures and a cash flow sheet.   Priced at $515,000

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If you have thought about making an investment, now is a good time.   Interest rates are still at a low level, all of these properties are decent shape with the owners willing,  within reason,  to make repairs that are needed when discovered in the “due diligence” inspections.

You Need A Property Manager…?  We also offer the 1st 3 months of Property Management if you buy these or any other rental property through us.  Our property management services can be found here.

 

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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Sacramento Fourplex – Fixed Up – Rented Up – Check it out Below

Nothing To Do Except Collect The Rent Now..

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5544 Keoncrest Cir, 

Sacramento, Ca 95841

 

All units are 2 bedrooms 1 bath and include a 1 car garage for each unit.

This was a “bank owned fourplex” that has been refurbished and updated inside and out.

We have a great tenant profile and all the units are currently leased up.

Click Here for additional pictures and more information.

Click Here  for the “pro-forma” cash flow analysis.

Take a drive by the area 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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