A Great Duplex + Nice Street – Poor Curb Appeal = Low Price

An Opportunity on One of My Favorite Streets – An Area that does not turn over often.

So here’s a monster duplex that just came on the market in Carmichael.   To get to this property you have to drive by some really beautiful single family homes.   When you first turn on Oakgreen Circle in Carmichael, you aren’t sure if you are looking at a neighborhood of duplexes because of the lush landscaping and mature trees and shrubs.

This property just came on the market yesterday and is listed at $235,000.  With a Gross Annual Income showing of $30,600, you get a deal at roughly 7.6 GRM.  The configuration is a 1,600 sq. ft. 3 bedroom 2 bath, 2 car garage and a 1,354 sq. ft. 2 bedroom 2 bath 1 car garage … 

You can see from the pictures it’s got some vaulted ceilings and at this price it’s got some upside potential.   It’s too bad that either the owner or the tenants leave all this much “stuff” laying around the premises and allow what could be nice landscaping to be ignored.

Cash Flow Estimates will come later.

Make it a great day.

Ed Favinger – Email: favinger@rwnetwork.com – Mobile (916) 203-1260

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A Nice Duplex, A Great Area… But Darn it… it’s just so “Overpriced”

It’s Not a Short Sale.. but at $299,000 there’s no upside for today’s investor.

I drove by this duplex located at 5849-5851 Nutchatch Court, Fair Oaks yesterday.  While it’s on a nice Dead End Court and there are pride of ownership duplexes around it, they are just asking too much money for it.

I’ve got a Proforma Cash Flow analysis based upon that I think it should sell for here and a Palm Video of the exterior here.

Since this Duplex is currently occupied I couldn’t get in to take any pictures or video…   However… I do have a Palm Video of the 2 bedroom 2 bath side on a  duplex just around the corner on Moss Creek Circle.  The floor plans in this neighborhood are all pretty much the same with the exceptions of course being the paint schemes and updates/upgrades.  Click Here to get an idea of the 2 bedroom floor plan.

There’s just not a real decent cash flow at their price,  so you’d have to get it for about $265,000 for it to even break even with about 25% down. 

 

Make it a Great Day

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Ed’s Contact Info:  email – favinger@rwnetwork.com Mobile: 916-203-1260

Bank Owned Duplex Back on the Market… I wonder why it fell through…

Who Knows Why it Fell Through… But it’s back up on the market and at a lower asking price too.

This duplex was on the market for just a couple of days about a month ago when it went into a “pending sale” status.   Well now… fast forward to today and wouldn’t you know it comes back on the market.  

When an REO/Bank Owned property comes back on the market…?   I’m pretty sure the reason is the previous buyer changed his mind on the deal most likely because of “condition”.

Why can I say that…?   Because….. It won’t be due to the Buyer not being able to qualify for a loan.  The reason for this is because either the Asset Manager requires the buyer to “pre-qualify” with their preferred lender, or the Buyer will have to get their own lender letter…  as a “requirement” before the Asset Manager for this REO/Bank Owner will even look at the “purchase offer”.

As you know once an offer is accepted, it is then that the “due diligence” period begins.  The Buyer has a certain amount of time to complete all inspections to discover any adverse problems such as “mold”… excessive “pest control” repairs.. to just name a few.

After a month of being in escrow it comes back on the market and they lower the price which means to me at least, the Bank is willing to deal a little.

Click here for the Cash Flow Analysis.

Click here for a slide show of the property with the surrounding area.

Click here for a Palm Video of the front and interior of the right side.

Make it a Great Day…

Email me at anytime at: favinger@rwnetwork.com

Mobile: 916-203-1260

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Is Curb Appeal Important for Duplexes or Any Investment Property..?

 

A Side by Side Comparison – Which One Would You Live In…?

I was out and about driving in the area looking at property and saw two Duplexes side by side and thought I’d show them to you here.

Let me guess which place you would want to live in.

MVC-001S 

DUPLEX NO. ONE

As you can see this one is nicely landscaped… well manacured that shows “pride of ownership” because it’s got an Owner that runs it right. 

 

In fact when I took this picture today she was getting a bid to have the exterior painted.   She got a chuckle when I told her why I was there to take a picture.   

  

MVC-002S

DUPLEX NO. TWO

 

This Duplex is located directly next door and to the right of the picutre above.  In my opinion this not only impacts the rental value of this property, it also effects the rental value of the one above as well.

 

  

MVC-003S

 

DUPLEX NO. ONE 

A FULL VIEW FROM ACROSS THE STREET

  What is there negative to say about this property?    Yea… maybe it does need a new paint job to update the curb appeal a bit.  This owner knows the value of putting money back into an investment to get a consistant return.  That’s why she was there with a painting contractor to make sure it’s kept up. 

   

MVC-006S

 

DUPLEX NO. TWO

A VIEW FROM ACROSS THE STREET

While I don’t know how often the owners drive by his property, if they don’t have time…?   Maybe he should hire a Property Manager that would have this responsibility. 

I think you would agree,  that if you as an owner,  don’t maintain or care about the curb appeal of your property, don’t expect a tenant to pick up the slack.   Chances are they will make it worse if you don’t have expectations and rules for them.

Folks…  You know… I’m not saying that you have to spend a lot of money on landscaping, but an initial investment in some trees, flowering shurbs, a timed sprinkler system and some lawn area will pay you back big time in the form of higher rents paid by quality tenants.   They will pay you on time and when you go to sell this asset…?  Ask your Agent or Broker how much the Sales Price is affected if it’s got a lush landscaped “curb appeal”.

Make it a great day…!

 

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