A Bank Owned & a Short Sale Duplex – Cash Flow for the Investor..!

Both are in “improving areas”, one in Citrus Heights and one in Rancho Corodva.

The Citrus Heights Bank Owned Duplex

Ok…  Let’s start with the Bank Owned Duplex in Citrus Heights that is located at 7700 – 7702 Sayonara Drive. Each side is a 2 bedroom 1 bath unit with Fireplaces, Central Heat & Air,  Garages and Washer Dryer Hookups.   One side has had a Kitchen update.

Click Here for a PDF File that will have the Pro-Forma Cash Flow Figures.

Click here for a Walk Through Video of 7700 Sayonara Drive,  the Right  Side

Click here for a Walk Through Video of 7702  Sayonara Drive,  the Left Side

I’m sure there will be multiple offers on this one because it’s not going to take much to get it “rent ready”.

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The Rancho Cordova Short Sale Duplex

The “Short Sale” Duplex is located at 2597 & 2599 Capitales, Rancho Cordova.   Each side on this one is a 3 bedroom 2 bath that includes Central Heat & Air, Fireplaces, Washer Dryer Hook ups, Garages.   One of the units has Kitchen and Bath updates and the other side has a tenant that has lived there for 22 years.

If you commute to Sacramento, the Light Rail Station is about a half mile away.

Click Here for a Flyer with some pictures of the left side that is under going some repair work.

I’ve been working sales of Duplexes for a long time and this street has one big problem.   While these duplexes are for the most part all 3 bedrooms on each side they lack sufficient parking because almost everyone has at least 2 cars.  As you will see in the flyer one car is on the grass.   The solution is to “increase the size” of the Driveway.   Take a look at the video I made of the street and see if you don’t agree that you can make lemonade out of a lemon.

The cash flow figures are going to be pretty much the same as the Citrus Heights duplex that I profiled above.   On this Duplex though,  we do have two loans that will probably take a little longer to complete the short sale.

I just put this Duplex on the MLS last week and we have two offers on it, so we’ll see how it goes from here.

Finally….

If you are a first time visitor to this Blog Site and are looking for an investment property don’t forget to check out the Free List Page and then send me a note if you’d like to have me analyze it’s potential cash flow.   If you send me an email request,  I’d be happy to send to you an Excel file that you can use over and over to calculate potential cash flow for property that you are considering.

Make it a Great Day…!

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

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More homeowners skip payments in Sacramento region – Sacramento Business Journal

I Thought I’d pass this article on from the Sacramento Business Journal.  It just goes to show that while we are seeing an increase in sales activity, there are still folks struggling to keep their heads above water so to speak.

It’s not a long read… check it out….

More homeowners skip payments in Sacramento region – Sacramento Business Journal.

In the mean time….?     Make it a great day…!

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

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Flips Are on the Rise – Business Journal: Absentee Home Buyers Up

Thought I’d share this story.

CPR: News Story | Business Journal: Absentee Home Buyers Up.

Make it a Great Day…!

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

A Bank Owned Duplex & A Short Sale Duplex – Same Street

You Want the Cash Flow Numbers…?  I Got The Numbers –  Check Them Out…!

First the Short Sale Duplex

I was out and about and came across the Duplex located at 7535 Saint Philomena Way, Citrus Heights.

This thing has been priced so low that it will draw several multiple offers and I’m sure it will go into escrow for at least $180,000.   Now I wasn’t able to get into the units because they are occupied..  At least one is, because when I was there taking pictures a resident was leaving one side.

I”ve based the Cash Flow estimates at a price of $180,000.   Click here for a PDF File for more information.

Click here for a Video that I took that will show the neighborhood better than the Street View link I posted above.  The Street View was taken during Winter months and doesn’t show as well as the Video I took.

Now below is the information for the Bank Owned Duplex

It’s located a few doors away at 7543-45 Saint Philomena.  The “street view” will start you on the way out to Fair Oaks Blvd.,  so when you get on it, go to the left and around the corner to see the property.   By the way… 0ne side is occupied and the other is just about “rent ready”.     For the Pro-forma Cash Flow Figures Click Here.

If you don’t like these…?

I”ve got others that might pique your interest.   Go to “Ed’s Free List” page for more.

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Don’t Forget The New A/C Refrigerant Mandate – Now That Summer is Near..!

I forgot where I got this from – but it’s good information – I think it came from one of the Home Protection Plan companies.

The 410A Refrigerant Mandate

Effective January 1, 2010, the Environmental Protection Agency, under Title VI of the Clean Air Act, will no longer allow air conditioning equipment that uses the refrigerant R22 (commonly known by the brand name Freon®) to be manufactured. This new mandate is designed to protect the environment from ozone depleting hydrochlorofluorocarbons (HCFCs) that can be released through leaks and improper disposal.

A new refrigerant, 410A, (commonly known by the brand name Puron®) is available and is not harmful to the ozone or environment if it leaks from an air conditioning system.

The information contained in this page will help you understand the impact this new mandate will have on the environment, and how you could be affected should your air conditioning system need repair or replacement.

Helpful Links

http://www.puron.com/generic/0,2804,CLI1_DIV114_ETI8735,00.html

http://www51.honeywell.com/sm/410a

EPA Info on R22 Phase Out

EPA Consumer Brochure

Frequently Asked Questions

What is the Montreal Protocol and why is it important?

In 1987, world leaders met in Montreal, Canada to discuss the effect of chemicals on our Ozone Layer. As a result, an international environmental agreement, referred to as “The Montreal Protocol,” established requirements that began the worldwide phase out of ozone-depleting CFCs (chlorofluorocarbons). These requirements were later modified, leading to the phase out in 1996 of CFC production in all developed nations. In addition, a 1992 amendment to the Montreal Protocol established a schedule for the phase out of HCFCs (hydro chlorofluorocarbons). HCFCs are substantially less damaging to the ozone layer than CFCs, but still contain ozone-destroying chlorine. The Montreal Protocol, as amended, is carried out in the U.S. through Title VI of the Clean Air Act, which is implemented by Environmental Protection Agency (EPA).

An HCFC known as R22 has been the refrigerant of choice for residential air conditioners for over 40 years. Unfortunately for the environment, releases of R22 that result from Freon leaks contribute to ozone depletion. In addition, the manufacturing of R22 results in a by-product that contributes significantly to global warming.

What is taking the place of R22 refrigerant?

The replacement refrigerant is referred to as 410A (or Puron) and is a Polyolester (POE) based refrigerant, as opposed to the mineral based oil used in R22 systems. In addition, 410A contains no HCFC’s and is not harmful to the environment or ozone layer if it leaks from the system.

Will there be R22 refrigerant available to repair existing air conditioners after 2010?

Yes. The phase out of R22 production allows for the manufacturing of R22 refrigerant through the year 2020, strictly for the use of servicing existing equipment. After 2020, the servicing of R22 systems will rely on recycled refrigerants and it’s expected that reclamation and recycling will ensure that existing supplies of R22 will last longer and be available to service a greater number of systems beyond 2020.

Can you install an R22 system after 2010 and will R22 equipment be available?

Yes. Manufacturers are allowed to sell existing inventory of R22 equipment after January 1, 2010, but will be prohibited from manufacturing equipment containing R22 refrigerant after that date. “Reliable” sources at several of the major manufacturers of residential air conditioners believe R22 units will be in short supply after Q2 of 2010. ORHP will install R22 equipment when available after January 1, 2010.

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BY THE WAY….   Now is the time to check your Air Filters and perhaps have your HVAC serviced.

Make it a great day…!!!

Ed Favinger, Broker, CRS, GRI, SFR        916-203-1260         favinger@rwnetwork.com
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Lenders – They Don’t Use Logic – Nothing Has Changed…!

Beating your head against the wall feels better sometimes then dealing with them

This is what my old mentor,  Mickey Holland told me when I first started in Real Estate back in 1981.   What he told me then has really held up over the years.

Let me explain.  We are now down to the final stages of a “Short Sale” involving a 1st from Well Fargo Bank and an equityline loan from E-Trade.  This scenerio alone is enough to scare a lot of people away from this deal.   But… after almost 6 months of waiting for approval we have it from both lenders.

The Problems….?

1.  The Title Company has to make sure that the Buyer gets nothing back after the close of escrow.

2.  The Short Sale Approval Letter from E-Trade is a PDF file that is not signed by anyone and is not on a “letter head”.  I wish I could put up a copy here, but it is a letter that only folks involved in the transaction can see.

Why do these two things make me crazy…?

Regarding #1 – if you have ever purchased a home before…. buyers “always” get back some money because the “escrow” people can never zero you out unless they are assured that a deal is going to close on time.  I’ve been in this business for 30 years and there is always some last minute adjustment on the papers which means a Buyer will get some money back after the close of escrow.  IT’S ALMOST ON EVERY DEAL I HAVE DONE SINCE I HAVE BEEN IN THE BUSINESS.

Now I can understand that in the Seller’s case they want to make sure there are no funds going to them because they are taking a payoff for thousands less than what is owed.   But my question would be, why do they insist the Buyer get nothing… when it’s the Buyer’s money..?

Regarding #2 – When talking with the Escrow Officer at the Title Company, she’s prepared to close the deal based upon the unsigned letter that doesn’t have any letter head.

So..?   My question to the new lender is… “Why do you insist on the letter from E-trade be signed when the Title Company is prepared to honor it, close escrow and issue an ALTA Lenders Title Insurance policy showing you, ‘the new lender’, in first position on the new Title Policy…?” The Title Company is, after all, on the hook not the new lender.

Meanwhile, all the loan and escrow papers have been signed since last Tuesday,  April 27th and we can’t seem to get anyone to either sign the letter from E-trade or at least put the letter on some “letter head”.

I bet if you speak with other professionals out there, you will find many more cases of an “over reach” by Lenders in today’s economy that just slow down the process and therefore a quicker recovery.

Make it a great day…!

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

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A Neat Idea for Busy People

The Mobile Car Wash…?  Check out this blog post from an Active Real Estate Broker in the Land Park/East Sacramento area.

I think this would be a great idea out here in Folsom or El Dorado Hills.   Maybe these guys will market out here or some young guys here will see an opportunity.

http://sacramentoshortsales.housingstorm.com/tag/bank-owned-homes/

Make it a great day…!!!

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

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An Approved Sale Rancho Cordova Duplex – A “Sleeper” Area

The Price is Right – Just Needs New Management & Some Repairs.

I was involved in a sale of a Duplex next door to this one.   There have been 3 recent sales in the area with new investors fixing these up.   This used to be an awful street of neglect.

That’s all changed in my opinion.   Click Here for the “proforma cash flow analysis”

By the way, we know this area because we also manage the duplex on the left side of this one.

This has been on the market for a while… just waiting for someone to jump on it.

Take a drive by there yourself and see what you think.   I think properties in the City of Rancho Cordova are a great investment.

Make it a great day…!

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


Folsom Lake Levels up – So what about the drought…?

I think it’s over…  take a look at Folsom Point, formerly known as Dyke 8.

I’m fortunate to live just a short drive away… probably less then 3 or 4 minutes if I hit the traffic lights right.

Make it a great day.

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

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