Sacramento & Folsom Real Estate are Hot..!!!

But so are a lot of other places in California…!

Maybe it’s just got to be the great weather right…?

Take a look at this…CaliforniaHomeSales

 

 

So if you’re thinking of buying a Single Family Home or any other kind of Residential Investment Real Estate like a Duplex, a Four-Plex or a small apartment complex, give is a call today.

And don’t forget, we also do Property Management as well.

In the mean time…?

Make it a Great Day…!

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

 

Rising Rents in Sacramento Region A Follow Up to an Earlier Post

Surprise….It’s all about supply and demand…!

I’ve told investors for the last several years that the big reason rents and ultimately home values would go up here was because they pretty much stopped building just about anything new since late 2007.   Sacramento Residential Property Investors that have picked up Duplexes, Four-plexes, Apartment complexes and even Single Family homes now often get Multiple Renter Applications when a unit comes up vacant.

Oh sure there were a few new projects constructed around the area but no where near the amount needed to maintain an adequate supply of homes and apartments especially the smaller types of investment properties such as Duplexes or Four-Plexes.

Illustrates the intersection of supply and dem...

Illustrates the intersection of supply and demand curves as the free market equilibrium (Photo credit: Wikipedia)

When you have a slightly improving economy, this is primarily the main reason we’ve seen some steep rises in rents throughout the area.

So… today I get this article from the Sacramento Business Journal and thought I’d share it with you.  I think it’s an interesting read.    CLICK HERE FOR THE ARTICLE.

If you’re thinking of getting into the Residential Investment Real Estate market, now is the time don’t you think…?

Call me today at 916-203-1260 and let me help you find the right investment.

 

In the mean time…?

Make it a Great Day…!

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

 

Duplex Investors Who Need Property Management.

Tenants Need to Know You Care About Your Property…

As part of our service to our property management clients, we drive by periodically to make sure the tenants livng in our properties are following the simple rules we have in their rental agreements.

These rules include such things as:

  • Tenants are never to park a car on the grass.
  • Tenants are to put their trash  cans behind the  fence gates except on “trash days”.
  • Tenants are to keep the premises clean and free of any trash and debri.
  • Tenants are not allowed to park inoperable vehicles or vehicles with expired tags on the property.

I wish other owners/landlords had the same standards because what they get in return are tenants who know you care about your property.  Because if you are one of the owners who want to maintain the value and increase rents, you’ll be surprised how quickly a nice looking place rents and for much higher than a property that doesn’t have the same standard.

Here’s an example…   What do you think of this owner…?  El Mercado - 1 (800x450)Would you be proud to own this property or would you want to live next to it..?

This one is located on the corner of El Mercado and Chettingham in Rancho Cordova.

 

 

And sadly… here’s a property we managed for about 2 and half years.  This one is just down the street from the one that is pictured above.    Earlier this year the owner asked us to sell it for him.     Here’s a picture of it when we put it on the market.

picture of the front

The new buyer loved the place and paid top dollar because he had to “out bid” the others… After it closed, what did they decide to do…? They decided to manage it themselves.

I  know the tenant rental agreements provided for the owner to maintain the landscaping but it looks  like they aren’t providing for it anymore and it shows how quickly a property can look run down from lack of attention.

Click on the picture above to see how it looks as of Monday, Sept. 7th…. you’ll get a short video to make the contrast.

The excuse some people are using is the drought.   It’s not an excuse in my opinion because you can water enough here to maintain the landscaping and curb appeal up if you really wanted to.

If you are an investor or soon to be investor…? please keep this in mind.

In the mean time…

Make it a great day…!

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

 

Foreign Investors Still Love California Real Estate

Here’s a story about a company that wants to scratch their itch.

I ran across this article that I thought I’d share.   Not a long read, but it’s an announcement about an “online” real estate investment management company moving into the Southern California market.Los-Angeles-highway

Real Estate has been overall a “safe haven” for many investors.

I’m sure you’ll be seeing stories soon about the growth in the area especially regards the South of 50 area of Folsom.

 

CLICK HERE FOR THE ARTICLE.

 

In the Mean Time..?

Make it a Great Day…!

Ed Favinger, Broker CRS, GRI, SFR, CDPE      favinger@rwnetwork.com    915-203-1260

 

 

Do You Think This Duplex is Something You’d like to Buy.

I Think The Owner Missed an Opportunity

Here’s a picture I took of a duplex located at 9664 Lake Natoma Drive, Orangevale, Ca.    They are asking $299,900 with rents at $950 & $1025.

9664 Lake Natoma, Orangevale, CaEach unit is a 2 bedroom 1 bath with single car garages.

Since I own a property across and down the street a bit when it came on the market I thought I’d swing by and see what it looked like.

My original thought about this blog post would be to point out the poor curb appeal and how it might affect the sale of this property and therefore the rest of the immediate area of Duplexes.

The listing agent was marketing as a property needing a little “TLC”…

My initial reaction was that this property was over priced based upon my visual from the street and from some of the interior pictures.   However this duplex is in a great area.   If you look at the aerial by clicking here you’ll see how close it is to the City of Folsom,  Lake Natoma recreation area and the trail system, lots of open space, nearby restaurants & local shopping along with easy access to the Highway 50 corridor.

With all that I felt was negative about this property, yesterday it was reported on the MLS as a Pending Sale after only 15 days on the market.   The Seller’s agent would not disclose the contract price to me or even if it was close to the list price or at a discount.   He says “we’ll have to wait” until it closes.

The point of this article…?    Click Here for the street view taken of this property back in 2012.  Don’t you think like me, that in the 3 years since that “street view” picture was taken,  the Seller could have at least planted a couple of trees and kept vehicles out of the landscape strip to the left of the driveway.

Yes parking is a problem in our area, but as an investor, why not help improve the property & the neighborhood.  The owner could have added another few feet of driveway with still an area for a planter along that strip.

9669 Lake Natoma Drive

With some “minimal planning & little more investment”,  you could easily make this a much more attractive place to live, get higher rents and thereby helping to keep the values up in what could be a nice area.

Click here for a slide show of what a duplex could look like front and back.

I’d like your feedback.    Let me know what you think.

In the Mean Time…?

Make it a Great Day…!

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

 

 

Curb Appeal of Investment Properties & Why You Should Maintain it.

A strong landscape maintenance regimen should be part of your plan.

I’m always amazed how little value some owners/investors assign to a well maintained landscaped front yard, even though it’s the first thing prospective tenants and Buyers see when they pull up for a look.

I have some pictures here to show what I mean.   We’re in the process of marketing the Twin Pines Apartments at 2755 El Caprice, Rancho Cordova.  el caprice #1

The owners of this complex have spent the last couple of years improving this property which is right across the street from the new Folsom Lake College annex building.

A few days ago I drove by a duplex next door to us located at 2743 El Caprice and saw a beat up looking truck on the grass.  This is what it looked like when I took the picture of it below.

Do you think this helps my Sellers in their quest to market their apartment complex?

Do you think the poor condition the owner allows the tenant to get away with is something neighbors on either side would like to live next to…?

The Duplex Next Door

Do you think any Buyer/Investor is going to take into account the poor curb appeal of the surrounding properties and maybe discount the value of this street more than if it was in a more “pleasant looking” condition…?

If you’re thinking of selling a home, I think everyone knows that curb appeal is something written about all the time as a big item to put on the “to do list” in preparation.

So if that’s true, why would it be different for an investment property like a Duplex, Four-Plex or an Apartment complex….?

By the way, do you think the owner of this duplex allows her home she lives in to look like this..?   The answer is no because I took a copy of this picture you’ve seen here to her.   She’s a a local investor and trust me her front yard didn’t look anything like this.

If you have followed this blog site for any length of time, this has probably been one of my passions over the years.

If you’re an investor, please don’t be one that just wants to take all the money out.   Put some value back into your investment by creating a nice curb appeal that will draw the best tenants to you.   They will pay you more in rent because they know you care about the property and so they will get that message and help take care of it too.

It also brings the value of the entire neighborhood up if everyone on the street did the same.

In the Mean Time…?

Make it a Great Day..!

ED FAVINGER, BROKER CRS, GRI, SFR, CDPE    916-203-1260   favinger@rwnetwork.com

More News – The Hot Sacramento Multi-Family Market

This is a follow up to my blog post of a couple of days ago.

The most recent news and opinions regarding  Multi-Family Apartment units has been that “cap rates” have been going down.   I also believe that those same metrics work for smaller properties.   As I’ve pointed out several times before,  rents have been and are going up if you’ve got a property in good condition with amenities.

Just about every Duplex or Four-Plex I’ve been involved in has had multiple offers which is an indication of a pent up Investor demand.   Our Property Management unit reports an overall vacancy rate of our portfolio is under 5%.

If that’s not the definition of a Seller’s market and a Landlord’s market then let me know when there is one.

Well lo and behold,   Ben van der Meer a real estate staff writer for the Sacramento Business Journal posted the following article earlier today.

Hot multifamily market affecting desired properties, urban core rents

More evidence that there’s some momentum in the Residential Investment market again.

 

Make it a great day…!

Ed Favinger, Broker, CRS, GRI, SFR, CDPE    

916-203-1260      favinger@rwnetwork.com

 

A Bank Owned Duplex – Rancho Cordova

This one is 3 bedrooms, 2 baths each side.

I ran across this Bank Owned Duplex for sale in at 3100-3102 Laurelhurst a couple of days ago and thought I’d profile it here.

With 3 bedrooms 2 baths on each side, this one will go fast and I suspect for a lot more than the list price of $227,500.

Click Here for the Proforma Cash Flow Analysis I prepared

The video of this property is below – Let me know what you think

 

If you are in the market for a Duplex that will cash flow, this might be the one you are looking for.

 

In the mean time…?

Make it a Great Day…!

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

 

 

 

A Duplex Just On the Market and Another Multiple Offer Situation…!

This one got 7 offers in less than a week…!

We placed the Duplex at 7983-7985 Marsala Court on the market in the middle of last week and as of today we have had 7 offers and the phone is still ringing.

IMG_0597

 

This is the 3rd Duplex I’ve placed on the market within the last 30 days.   One of the threads that has been consistent in these situations is that these Duplexes all had a decent enough income to give a cash and had Pride of Ownership to go with it.

For a copy of the cash flow figures of this Duplex Click Here.

The Sellers  just accepted an all cash offer that was well over the list price and we’re now moving forward with the “due diligence” period and we’ll see what develops on the way to the closing.

If you are thinking of buying a Duplex or a Four Plex in the Sacramento Region or you are thinking of Selling, give me a call.

There are still great deals out there if you are a buyer and if you are tired of being a landlord, now might be the time to think about Selling.

 

In the Mean Time…?

Make it a Great Day….!

Ed Favinger, Broker, CRS, GRI, SFR CDPE   

Cash Buyers Are Still Out There…!

So Says The Sacramento Business Journal

CLICK HERE to catch this article just in,  but it’s old news to me.

I’m working with more than one buyer using “all cash” for their purchase.  And they vary…  Some are “flippers”, residential income  investors and home owner purchases.  cash picture

Personally… I don’t see an advantage anymore in doing a cash deal unless the property is in dis-repair and unable to be financed under normal circumstances.   This was the situation in a couple of “bank owned” duplexes buyer purchased through us recently.

Also… having extra cash might help close a deal if an appraisal in conjunction with financing comes in low because the buyer can make up the difference if the value is there.   This is a problem now because values are rising faster then the supporting appraisals.

 

Make it a Great Day…!

 

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