The Four Plex is Bank Owned/REO & the Duplex is a normal “equity” sale.
While the market is still pretty decent, we are not getting the “multiple” offers as often as we did earlier. I think one of the reasons is the condition of some of the new inventory coming up for sale. They are asking top dollar but their condition is not at the quality to match their asking price. I have two examples below.
The Four Plex located at 801 Carro, Sacramento is in pretty sad shape. Take a peek at the video below. I did not go into all the units and probably should have. These four-plexes are a little different than the usual 4 plexes because most of these are configured as 2 bedroom 1 bath units. However when I got back to the office I noticed on the MLS listing print out that there must have been some changes made because the listing shows a 3 bedroom 1 bath unit in the mix along with a 1 bedroom 1 bath unit.
I’ll have to verify this and update this blog post later. The reason is because I have been involved in the sales of these types of four-plexes before and they are all 2 bedroom 1 bath units.
Click Here for the “proforma” cash flow analysis I prepared based upon the asking price of “sales price” + Fix Up costs I estimate at $10,000 per unit. I think the closing price has to come down some because on any REO deal such as this one, there’s always something you miss or that comes up unexpectedly when you are doing a rehab.
The Duplex is located at 2647-2649 Mcgregor Dr, Rancho Cordova. It’s listed at $209,500 that includes a 2 bedroom 1 bath unit and a 2 bedroom 2 bath unit. Both have 1 car garages. Both units are rented under market in my opinion, which my cash flow analysis below reflects.
By the way….I think Rancho Cordova is the “sleeper” investment area of the Sacramento Region. The city has made an all out effort to clean up the Folsom Blvd corridor and it shows. This property by the way, is within a short walk to the Light Rail station and the Zinfandel Shopping Square which include a Grocery outlet, fast food and some shopping. Access to Hwy 50 and the Sunrise Corridor is right there as well.
I was a little disappointed when I previewed it. The lawn hadn’t been taken care of and when I tested the front yard sprinkler system on the vacant unit there was a broken sprinkler head gushing out water.
Anyway, Click Here for the “proforma” cash flow analysis and you can catch a quick video of one side below.
Let me know what you think.
In the mean time….?
Make it a Great Day..!
Ed Favinger, Broker CRS, GRI, SFR, CDPE email@example.com 916-203-1260