There is a lot of Competition for Bank Owned Duplexes….!


“Fish where they ain’t” is a slogan I got from Ed Keller, another long time Real Estate Broker from one our Realty World offices in Amador County.   I have his link on my side bar if you want to check that area.

So with those words in mind I’ve been scouting out potential cash flow opportunities besides those that are Bank Owned/REO type of situations.

I came across two duplexes that are side by side on the corner of Gibbons and Walnut – 3852 through 3858 Walnut Avenue.  CLICK HERE FOR A CASH FLOW ANALYSIS

These properties have been on the market for over 90 days.  Rents vary from $700 to $900 per month.   I based my market analysis on $900 per month.  You can go and get a rent comparison to see that $900 is possible.

I think these could be a good deal if you can buy these right.   My cash flow figures were based upon sales prices of $200,000, but these should sell for a lower amount based upon the rents that they are getting now.

However when you are a landlord that prices your units below the market, you will then make it difficult to sell at top dollar, which I think is the case here.   But… these duplexes have a good location in my opinion.  They do need some curb appeal updates and probably will need some interior work as well to get that top dollar income.

In other words, since no one else is bidding on these as far as I know, maybe if you “fish where they ain’t” you might get a decent catch.

Make it a Great Day….

Bank Owned Four-Plex – Carmichael, Ca


If you have known me a while, you know I am not a big fan of Four-plexes in this area.

The reasons are as follows:

  • Most are flats – 2 units down and 2 units up
  • Most have no covered parking
  • No private patios or yards
  • No Firepaces
  • No Dishwashers
  • No Washer/Dryer Hookups – although they might have a coin-op Laundry Room
  • Located in a high density area of other rental units

However – Check this one out at 5720 Engle, Carmichael – These Four  Plexes  were built in the late 80’s.  They have just about all the amenities of a single family home or a duplex,  that are excluded in the list above.   Those missing amenities are pretty typical of most of the Four-Plexes in the Sacramento Region.

Click here for a Palm Treo video of the exterior taken this past Saturday, July 25th.  This property is located on the corner of Engle and Sareco Court.   If you go to google maps you can get the “street view” of this property.

You will notice in the slide show above that this is a nice area that is not all apartments another “plus”…!

Hot on the Market – Fair Oaks Duplex – Rare Pride of Ownership


I get excited when I see a Duplex like this on the market.

This is one of those rare duplexes that has a 3 bedroom 2 bath on one side and a 2 bedroom 2 bath on the other.  Both sides have 2 car garages.   This looks like a single family neighborhood and across the street are new single family homes.

When you have a duplex that is in decent condition, almost rent ready, it’s not going to be on the market long.

Click here for some pictures and a “proforma cash flow analysis”

Here’s a YouTube Video I took with my Palm Pilot… This is of the interior of the 3 bedroom unit.

Click here to view  

Hey if you want more information on this or any other residential investment property in the Sacramento Region, just drop me a note.



In the mean time…?

Make it a great day….

Check My Ed’s Hot Picks Page – Investment Real Estate Deals..!



I’ve posted some new prospective Cash Flow opportunities to the Ed’s Hot Picks page that you might want to check out.

An Interesting Nine Units

One of them is a 9 unit property that I has been on the market for a long time and recently went into foreclosure so you’d better hurry.  

This property consists of two parcels.  A notice of default on one of them was filed in April and the other one just a few days ago, so the clock is ticking.  Call me for more information – 916-203-1260.

Financing if you need it will be an issue, especially on the 6 unit parcel.

A Duplex that could be owner occupied on one side.

The other property that was recently added is a duplex in a nice part of Citrus Heights, that is a 3 bedroom 2 bath on one side and a 2 bedroom 2 bathroom on the other.  The notice of default on this one was filed in April, so this one is getting down to the wire. 

As I have said in earlier posts…  I don’t always post these deals here, but if you check the Ed’s Hot Picks page I do update it a lot more often.


In the mean time…?



Roseville Four-Plexes – Got Some Ca$h Flow

July 14th – about 8:45 PM


Bread and Butter Four Plexes with Cash Flow Potential:


If you are a return visitor here you probably have not seen too many Four Plexes on this site that I have analyzed.  If this is your first time here because you are looking for an investment, I hope you find the information here useful and informative.


I may not post a daily entry to this blog here, but I will update this site at the ED’S HOT PICKS page frequently.   If you go there now you will find two potential Four Plexes listed under Roseville that I have provided Cash Flow analysis estimates.


I am very familiar with this area.   These Four-Plexes are what I call a Bread and Butter type investment… meaning they don’t have a lot of amenities such as central heat and air, individual laundry hook ups, fireplaces or sometimes even a dishwasher.


However, they are located in Roseville surrounded mostly by single family homes.


Both of the properties that I analyzed need some work on the curb appeal and the usual interior fix up.


If you are a long term investor and like to fix up properties and upgrade them, there have been other investors in the area that have done just that.  I’ve seen them add Central Air, upgrade landscaping and provide covered parking all of which does help to get a better quality tenant.


Bookmark this site and come back from time to time to see new postings on ED’S HOT PICKS


In the mean time…?



The 1031 Tax Deferred Exchange is still around


Now’s the time to “Move Up”…? 

I got a Newsletter from Leonard Spoto of  Asset Exchange Company that I thought I’d share with you.

If you’d like more information regarding 1031 tax deferred exchanges, then check them out here and down load articles that will probably answer most of your questions. 

What follows is a part of their most recent “newsletter”.   I hope you find this useful and informative.


Trading Up in Today’s Market


Many of our clients are taking advantage of the turmoil in the real estate market by trading up. The theory is simple: a declining market favors investors who are trading up because the higher the property value, the greater the decline in real dollars assuming both properties are declining at the same rate.


There are also a lot more buyers who can come to the table with a 20% down payment on a $500K property than a $1MM property. Bernard P., a recent Asset Exchange Company client acquired his first commercial building after selling a $550K rental property in South San Francisco. Asked the motivation for his trade his answer was simple “there are great deals out there right now on the big stuff and we had plenty of interested buyers for our sale property. The time was right to trade up.”


Trading up with a 1031 Exchange also allows you to keep all of your money working for you. Taxes on the sale of an investment property can be as high as 1/3 of your total gain. But by entering into a 1031 Exchange before the close of escrow on the sale property, those taxes can be deferred (and possibly avoided altogether) allowing investors to get maximum value out of their real estate transactions.




Real Estate – An Hedge Against Inflation


Depending on which economist you read you may be inclined to believe that the US is headed towards an inflationary economy. The theory is that because the Fed and it’s counterparts around the world have been printing money to combat the global recession, inflation is a natural consequence. If you buy into this argument, you may want to consider investing in real estate as a hedge against inflation.


With real estate, if you have a low-rate, 30-year, fixed mortgage, your note will become a thing of beauty as prices rise:


– Your property value will rise


– Your rental income will rise


– Your mortgage payment will remain fixed


– You will repay the loan with cheaper dollars


There is plenty of disagreement, of course, among top economists regarding inflation. Some argue that with unemployment figures at a 26 year peak and plenty of idle factory space, rising prices in the near term is not a concern.

Real estate investors need to remember however, that a hedge against inflation is just one of the many benefits of investing in real estate.   Frequent readers of this newsletter will note that we often discuss the numerous tax advantages to owning real estate including:


– Ability to depreciate real estate hence reducing (or eliminating) your reportable taxable income from the property


– Ability to write off expenses


– The mortgage interest deduction


– The ability to sell real estate and either avoid and/or defer the payment of capital gains taxes


One thing for certain is that plenty of opportunistic investors are finding value in today’s real estate market.



Contact Leonard for more information regarding your 1031 exchange at and tell him Ed Favinger sent you.



Make it a great day…!