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

 

 

 

Rents Are Up in The Sacramento Area – Old News To Us in Real Estate Sales & Management.

When The News Hits the Sacramento Bee – You Know it’s “Old News” When It Comes to Real Estate..!

If you’ve followed my blog site for any length of time I’ve pointed this out several times.   The reason you ask…?  They stopped building Apartments and just about anything else here because of the recession.  They are only now beginning to ramp up, but mostly single family homes.

And since they are not building more apartments for middle class folks just starting out, rents have gone up.    What apartments they are building or planning on building are “subsidized” housing or the more “high end” apartment complexes with lots of amenities according to a recent article in the Sacramento Business Journal.

I’ve said to many people seeking to find a home or an apartment to rent in Folsom, Orangevale, Roseville or any other area in the Sacramento Region that,  “you probably need to know somebody inside to get a decent rental anymore”.    I wrote about it here.

Many of the investors I have placed into Duplexes, Four-plexes and Small Apartment complexes know they can get “higher rents”, so most of them have improved their properties to take advantage of the upswing in rents that can be derived.   That also was written about in today’s Sacramento Bee article.

So CLICK HERE for that latest story from The Bee.   Let me know what you think.

In the Mean Time…?

Make it a Great Day…!

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

 

Do You Think The Curb Appeal of This Duplex is a Plus or a Minus…?

Would you put this on the market the way it looks now…?   Would a Tenant Pay More to Live There…?

I just had to pass this on to those folks that are thinking of buying a Residential Investment, such as a Duplex, a Four-Plex or an apartment complex or even a Single Family Home.

People will make an instant judgement about a Duplex for Sale just about as soon as they pull up to the curb.

This Duplex I’m profiling here today is located at 2719 & 2721 Bravado Drive, Rancho Cordova.  Despite it’s poor curb appeal, it’s on a corner lot that backs up to one of our other Investors who have been outstanding in helping create a nicer neighborhood.

In this slide show, we’ll show you the “subject property” and then you’ll see the other units our Property Management company currently maintains.

This Duplex closed escrow back in December of 2013 at a sales price of $161,000.   The new owner hadn’t done much if anything since he’s had it but,  now wants absolute top dollar.    His rents currently are at $900 and $850 per month and they should be at $1,000.

Generally in my opinion, I think investors who skimp on curb appeal and landscaping are leaving dollars on the table in returns they would otherwise have received.   Not only in a higher sales price, but higher rents during their ownership as well.

Tenants will pay more for a nice pad.    Let’s see if he gets his price because I think it’s worth no more than about $245,000.

CLICK HERE for a proforma cash flow analysis.  It’s really ugly in front but just needs some TLC…..    So, overall,  I think this could be a nice investment given that the surrounding properties have a lot more “pride of ownership” then this owner and it won’t really take that much to bring it up to par with the neighbors.

 

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

 

Duplex Investors Who Need Property Management.

Tenants Need to Know You Care About Your Property…

As part of our service to our property management clients, we drive by periodically to make sure the tenants livng in our properties are following the simple rules we have in their rental agreements.

These rules include such things as:

  • Tenants are never to park a car on the grass.
  • Tenants are to put their trash  cans behind the  fence gates except on “trash days”.
  • Tenants are to keep the premises clean and free of any trash and debri.
  • Tenants are not allowed to park inoperable vehicles or vehicles with expired tags on the property.

I wish other owners/landlords had the same standards because what they get in return are tenants who know you care about your property.  Because if you are one of the owners who want to maintain the value and increase rents, you’ll be surprised how quickly a nice looking place rents and for much higher than a property that doesn’t have the same standard.

Here’s an example…   What do you think of this owner…?  El Mercado - 1 (800x450)Would you be proud to own this property or would you want to live next to it..?

This one is located on the corner of El Mercado and Chettingham in Rancho Cordova.

 

 

And sadly… here’s a property we managed for about 2 and half years.  This one is just down the street from the one that is pictured above.    Earlier this year the owner asked us to sell it for him.     Here’s a picture of it when we put it on the market.

picture of the front

The new buyer loved the place and paid top dollar because he had to “out bid” the others… After it closed, what did they decide to do…? They decided to manage it themselves.

I  know the tenant rental agreements provided for the owner to maintain the landscaping but it looks  like they aren’t providing for it anymore and it shows how quickly a property can look run down from lack of attention.

Click on the picture above to see how it looks as of Monday, Sept. 7th…. you’ll get a short video to make the contrast.

The excuse some people are using is the drought.   It’s not an excuse in my opinion because you can water enough here to maintain the landscaping and curb appeal up if you really wanted to.

If you are an investor or soon to be investor…? please keep this in mind.

In the mean time…

Make it a great day…!

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