Being a Landlord is Rewarding… But You’d Better Beware..!!!

This Property Came Back into the News Yesterday in the Sacramento Bee and it’s not a Happy Ending.

 

 

 

This article is basically an Update on the Story I wrote last year…  A Lesson In The Costs of Not Maintaining Your Rental Property

 

The final outcome was announced in yesterday’s “fish wrap”.

Take a minute and read the link above and then read the story from the Sacramento Bee.   The Headline below will give you a nice clue as to what happened.

Tenants win settlement over conditions at Rancho Cordova apartments

What happened to these former owners is that they “ignored” complaints from some of the tenants about Vermin, Mold and some Safety Issues.

When you are a Landlord, you can’t ignore problems like this.  In an apartment complex, a disgruntled tenant with a legitimate issue that is ignored will spread the word and all of a sudden, everyone will want to get on the bandwagon thinking there is a “big payday” at the end.

In this case this it what happened and it didn’t have to be.

I don’t care what kind of property you purchase, a single family home, a Duplex or even an Apartment complex these issues will come up from time to time.   Most of the time they are minor and can be mitigated if you act early and never ignore it.

 VERMIN… VERMIN…VERMIN…

Failure to remedy an infestation of vermin, such as rats/mice/bedbugs/roaches or mitigate water damage that will lead to a mold problem will cause you to be up against a Code Enforcement officer and might even lead to a nasty lawsuit that will cause you to lose your investment.

I’m not trying to scare you about investing  in Residential Real Estate… My goal here is to educate you so you can avoid this  kind of problem.   Failure to act will bring on another kind of vermin…  The “hungry” litigation Attorney. They love to sue landlords because they know there will be a big insurance payoff to them and maybe a little bit of $$ for the victimized tenant.  Just beware ok…?

Below are some articles I’ve picked up from the internet that will give you some insight as what these critters are and what they do.    Like I said, just be aware and never ignore them.

Meet the Critters Inside Your Mattress – Al Hofer’s South Florida Pest Blog

Vermin…Who is Responsible – From the UK blog – Property Management FAQ

 Top Dog Pest Control – Info and Links to California Landord Tenant Law Information

 Mold…Mold…Mold – Don’t Be Scared – just be informed – Regarding Obtaining Insurance for your property

 

In the Mean Time…

Make it a Great Day

 

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

 

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A Bank Owned Home and A Duplex Profiled Here…

How Many Offers Will They get? And… How Many Will Be Cash ?

Who knows but it seems every home or duplex that I have taken a look at has had multiple offers.

The Sacramento Bee today comes out with another story in today’s paper about how “cash is king” in home shopping.

Anyone who has been in the Real Estate business as an Agent or Broker has known this for a while now.   If you are an Investor or Home Buyer that has been searching in this market to make a purchase in the last few months,  the SacBee story didn’t say anything new to you, did it..?

So let’s take a look at a couple of properties here that I’ve recently seen.   One is a single family home in Elk Grove that is next to a home that I listed last May at 2220 Yarnell Way.  By the way, we had 13 offers on it.  The other is a Duplex near the Carmichael Area.

The House – 2216 Yarnell Way, Elk Grove – a monster 3 bedroom 2.5 bath with a large bonus room that should be converted to a 4th bedroom if you are an investor looking to rent it out.   It’s listed at $225,000 and has 2600 sq ft of living space.   The listing agent said he’s not going to look at any offers until the 5th of September, so you have time.

Click here for the video walk through I did on Sept 1st.

The Duplex – 5208 – 5210 Shereen Court, Sacramento, Ca –  A large duplex with 3 bedrooms 2 baths & 2 car garage with a 2 bedroom 2 bath & 1 car garage that is listed at $259,000.   I personally think this is a little high but in this market who knows.   When I did the walk through I noticed a business card from another agent was left on the kitchen counter so I sent her a “text message” asking her for her opinion.   She also thought it was too high but did say her client was going to write an offer on it.

Click here for the video walk through of the Vacant Unit only.

Click here for a “pro-forma” cash flow analysis based upon the existing rents in the occupied unit & rents at $1,000 for the 2 bedroom 2 bath unit.

 Oh and by the way… These properties above just came on the market a few days ago.

 

Make it a Great Day…!

 

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

 

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