Realty World – Franklin Real Estate Group – Ed Favinger

In Your Search for a Duplex Investment,  Not Only Should You Consider the Surrounding areas – Consider it’s current setting – I’m talking “Extended Living Areas” that Add Value.

Why do I say that…?   Well if you haven’t noticed we are in a recession with an unemployment rate in the Sacramento Region around 12-13%.   This means people are going to have less money to spend on nights out on the town, vacations and other entertainment venues that these folks might in good times frequent.

You’ve heard of “Stay-cations”… vacation at home.   And if you are going to be in the Landlord business, consider that if folks have to stay home, they’d like a nice setting to enjoy.

An advocation that gives me a lot of pleasure is “landscaping” a property.   It’s important to me and I believe this is one of the big items I think many investors choose to ignore or go on the cheap.   One comment in a basic landscaping book I got at Home Depot years and years ago spoke about the importance of landscaping.  ”Landscaping when done right acts as an extension of the living area.”

Patios outside a Dining area for example is a nice place to have your BBQ grille and Patio Furniture.   A small patio outside a bedroom slider would be a nice place on a Saturday or Sunday morning to read a paper and slurp your “cup of joe” wouldn’t it….?  Or…? What about having a glass if wine with your friends over on a nice evening with the sun just about to go down on a well appointed deck or patio.

See the two examples below and let me know if you see the “potential” that a good landscape cleanup and enhancement would do for them.    I have videos of both  along with the usual “pro-forma” cash flow analysis.

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910 Bell Street, Sacramento - This property is on the corner of Bell Street and Villanova Circle.  It’s located near a regional park, Cal Expo, Arden Fair Mall, entertainment and restaurants.  This one has some mature landscaping in place that just needs to be properly cared for and along with the usual repairs that is required on these REO/Bank owned properties, if you took my suggestions, this would be a long term keeper.

Click Here for a Pro-forma Cash Flow Analysis

Click here for a video of the Bell Street Side Click here for the Villanova Circle Side

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3622-3264 Sutterwoods Way,  Sacramento, Ca.  I used to own a property just like this one about 8 years ago so I know the street.   This one also has a unique corner lot setting with a lot of shrubs and trees.    The interior of this one is not in bad shape.  The appliances don’t appear to be too old.

Click Here for a Pro-Forma Cash Flow Analysis

I hope you see the potential in these two potential investments.   A first time home buyer I think could make a nice home out of one side and rent the other by the way.

Make it a Great Day…!!!

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It’s all sorted by City

Been looking for a website with a list of Residential Investment Properties such as a Duplex, Four-Plex or Multiple Residential Apartments that you can browse at your computer?

You are now in luck.  If you go to Ed’s Free Investment Property List you will be able to check out what is available.

As of today it’s not a complete page, but I’m working on it and hopefully I will have it done in the next hour or two.   You can see what is there in the meantime, so book mark this page for future reference.

Don’t forget to check out Ed’s Hot Picks page for properties that I have already reviewed and prepared a “pro-forma” cash flow analysis for.

Make it a Great Day…!!!

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

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What About Short Sales…?  They’ re Hot too.

If you’ve been to this site before,  you already know that I am a big fan of Duplexes… especially the “REO or Bank Owned” type because they are for the most part deeply discounted from their highs from years past.

The dis-advantage to a Bank Owned or REO deal is that,  while you get the property at a dicounted price, there will be that “as is” thing they insist on and with rare exceptions they don’t deviate from it.   You get these deals with the property vacant, which means you have to go in and do the “fix up” to get them in a “rent ready” condition.  If you want to see what an vacant REO/Bank Owned property can look like, go here.

Now even “Short Sales” are becoming a great deal because the banks are now more willing to complete them in a timely manner.   

OK… Why do I say Short Sales are Hot Too…?

Well, for starters, most of the time in a Short Sale the property is still occupied by Tenants.   The trick is to get one that has “rent paying tenants”.   However, even though the case may be they are not paying rent, this could be the result of  the tenants having been notified that a foreclosure is pending and they are holding funds in case they have to move.  Or… the current owner has just abrogated the responsibilty and is not even making an attempt to collect it.

Either way in most cases you can work a deal out with the existing tenants to have them stay.   Now keep in mind when an owner is in this situation, you will probably run into an old “deferred maintenance” issue that has been neglected by the current owner which,  if resolved by you, will go a long way in keeping the tenant there and happy to stay.

The advantage then of keeping the tenant there is that you will not have to go in and spend the extra “bucks” to re-rent the unit.  

And Finally.. the best reason to go after a Short Sale now is you still get the same “discounted” or “market price and that Lenders are beginning to approve them much quicker than in the past.    How cool is that…?

If you want a list of REO/Bank Owned & Short Sales…?

You’ve come to the right place.  I’ve analyzed both types and prepared “pro-forma” Cash Flow figures for each one on this page.  I’ve got videos too on some of them.   If you book mark this page, you will get updates as I go out and view these properties and post the information.

Make it a Great Day.

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

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Have you ever heard of “Supply & Demand“..?

If you are on still the fence about buying an investment property in the Sacramento Region, I thought I’d update you with a forecast from Marcus and Millichap that they came out with.  

They’ve analysed several markets all over the country.   You can read the artcle yourself below.  What they don’t tell you is in the conclusion that in the future,  there will be upward pressure on rents along with prices when the economy picks up.   Why…? Nothing has been built in this area lately.  

You can read the entire article but here’s the most important part as regards new apartment construction in the Sacramento Region.   “Completions are expected total fewer than 100 apartments this year. No units were delivered in 2009.”

U.S. APARTMENT ROUNDUP: Marcus & Millichap Sees Sluggish First Half for 30 Multifamily Investment Markets

Mortgage interest rates are low and prices,  while they have stabilized in the Sacramento Region,  are still depressed because of the weak employment picture  here.   When the un-employment rate finally starts to goes down… folks that have been doubling up with relatives or roomates will want their own place.  

So if you are investor, now is the time to jump on a Bank Owned or Short Sale Duplex, Four-Plex or a Single Family Home.     

Take a look at some of the inventory out there now by clicking here.

Remember….   If you believe in America this economy is not going to last forever.

Make it a great day…!

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

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