A Flip That Might Be a Win-Win….IF…?

A Win-Win Means There Must Be a Profit for Buyer & Seller.

I profiled this property back in May when it first hit the market..   Click here for the Cash Flow I projected back then.

I even have Video:

Right Side Video of 10414 South White Rock

Left Side Video of 10414 South White Rock

Now They Want to “Flip It”.

The folks that got this Ranchor Cordova Duplex put it back on the market on July 7th or so.  I watched this property because I knew they had made a “smokin buy” at $127,000.  But…..at their new “asking price” of $229,000 I thought they were really going over the “Hog Line”.

So after a couple of price changes, they’ve lowered the asking price south of $200,000 to $195,000…  still what I consider to be a little high.

Here’s what I think should be a “win-win” for the investor who only paid about $127,000 for this around  May 20th of this year.  Click Here for what I think the sales price and cash flow would be and then you tell me if the Seller makes money and the Buyer has a good deal too – A Win-Win….

 

Maket it a great day…!

Duplex Sales Data – As of August 15th, 2009

 

Duplexes Are Selling Fast – Lately….

For those of you that follow this blog, I’ve just put together the Comparable Sales Data for Citrus Heights, Rancho Cordova, Carmichael, Folsom, Fair Oaks, Orangevale, North Highlands and the Foothill Farms area of Sacramento County.

The Closed Sales section consists of Sales that have closed escrow on or after May 1, 2009.   I think you will notice that there has been a flurry of recent sales.  Time on the market has dropped.   I am posting this now so you can see what has been happening in the market within the last 2 or 3 months.

I will post later more statistics.   One of the problems in trying to analyze these properties, is the fact that many are vacant, so their incomes have to be “projected”.

Fix Up should be factored in.

Don’t forget that many of these duplexes, if they have gone back to the Bank, will need work because they have been neglected.l

The reason for the neglect is that many of these properties were sold at such a high price back in the “go-go” days, the investor had to take money out of pocket to maintain loan servicing and “defer” needed maintenance.   However, some of these properties were purchased by investors who had hoped to “flip” them and therefore did spend a lot of money with some new kitchens and bathrooms.  I’ve seen some of these where one unit would be rent ready with not too much more invested beyond new paint and carpet.

In other cases, well.. let’s just say they’ve got a lot of “deferred maintenance”.   Our experience has been that on just about any of these, you’ll need something in the neighborhood of $5,000 – $10,000 extra “per unit” to get these duplexes back into a decent condition.   This would be enough most of the time to have new carpet, paint… and some landscaping to enhance the curb appeal.

CLICK HERE FOR A COPY OF THE PDF FILE – COMPARABLE SALES AS OF 8-15-2009.

If you have any questions, please drop me a note at favinger@rwnetwork.com or call me at 916-203-1260.

 

Make it a great day…!!!

Getting Out Bid for the Duplex you want…?

I know what you thnk… “What’s the deal here…?”

According to my partner Carl Cooley, Broker, we’ve had about 4 months of increasing prices.   You know… I don’t know what to tell you except the following and you come to your own conclusion.

Last weekend I wrote.. I think 8 offers… Only one of that group was accepted and that was a short sale on a condo for about $45,000.00.

The other offers were for properties that I have posted on this site before.  On every occasion I was given the  usual “bring your highest and best offer” verbage from the listing agent.  I found out that several of these offers were “all cash” including the ones that I presented.

Folks.. you have to be careful here because I think the Banks are holding several more of these back, because they want to keep the prices up.

The economy in improving.. and yea I know we’ve got about 11% unemployement here in the Sacramento Area, but you see signs everywhere that it’s not “dead”.   Take a drive anywhere around this region and you are going to see construction sites working.

The Builders haven’t realy gotten back in the market here to build new inventory, although there are projects working.   So while we have some high unemployment numbers there is a lot of money looking for a home now.

Be carefull that you don’t get caught up in the frenzy because these things have to pencil out to make them attractive.  On just about every deal we do, I tell prospective Buyers to be prepared to invest another $10,000 to $20,000 in “fix ups and upgrades” to get the rents you’ll need.

Make it a great day