Plumbing Leaks Can Ruin A Vacation – Here’s a Tip to Avoid a Mess

What Happens When A Water Supply Line Leaks & You’re Not Home…?

Before I answer that question, let me implore you to obtain and maintain a Hazard Insurance policy for your rental properties that does cover water leaks.

So now let me answer the question…    The Answer is..?   There’s gonna be a whole lot of water spilling into the room and spreading throuthumbnailCA5LCWSF - aghout the house until it’s turned off.

If this is a leak for example,  from a Toilet Water Supply line in an upstairs bathroom,  which recently occured in a rental home here in Folsom that we manage, the water will find a way downstairs…  In this case, it came through a vent and dripped in an area right below.

We were lucky because the tenant was home and was able to turn off the water supply valve.   This lady estimated that the water had to have been leaking for about 20 minutes.

An emergency call went out to one of our vendors to extract all the water we could and place fans to dry up the carpet to prevent mold and mildew from forming.

We were lucky because this lady just happened  to be home.

So here’s the tip… If you are going to be gone for several days and do not have a house sitter, you might want to consider turning off the water supply lines in the house,  or… just turning off the water supply line at the gate valve.

I can’t imagine the damage that would have occured if this tenant had not been home and even if you have insurance, there is the hassle of dealing with it all.

Make it a Great Day

 

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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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Carmichael Duplex In a Single Family Neighborhood

These Rarely Come On the Market

This duplex is on a nice little street over in Carmichael that has an older tree lined country street feel with no sidewalks leading into this newer area that does have sidewalks, curbs and gutters.   Not much traffic goes back in here.

If you are looking for a unique type property that you can hold onto and that will hold it’s value, this would be the street.  Cash Flow is not that great on paper, however you will have an easy time finding great tenants that will want to live here.

Click Here for a Flyer  that has the cash flow numbers.   You will notice that even though this is listed at $193,050 that I calculated a cash flow based upon a price over $200,000 because this property will sell for something in the $220,000 to $230,000.   There will be “multiple offers” on this one.

For some Palm Videos that I took today about 11:00 AM see the links below.

Right Side of the Duplex

Left Side of the Duplex

 

Make it a great day

 

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So What if it’s located on a Busy Street in this Market

That Madison Avenue Duplex I Profiled is a “Pending Sale”…!

Yea… It doesn’t matter if it’s priced right.   If you go to my blog post of October 15th, you’ll see all the information including a Palm Video that recorded how loud the street noise was when you are standing outside.

Take a look if you haven’t seen it yet.  Just scroll down a bit.

 

Make it a Great Day…!

Cash Rules in the Bank Owned Duplex/Four-Plex Market

Multiple Offers In a Recession.? You Kidding…?  Read On….

You’ve heard though the Main Stream Media that we are in a recession “nationally” and if you didn’t know, the most recent report regarding unemployment in the Sacramento Region pegs us at 12.3% 

Most of us in the real estate business know that there is a lot of money looking for a home…especially… in the investment real estate sector.

Would you believe that  50% of the 171 Closed Transactions in the 3rd Quarter 2009 were all Cash deals with no financing involved..?   Check out the stats below here.

 Cash Deals                                                         85        49.707%

Conventional Financing – Min. 25% Down      61       

FHA – Owner Occupied – Min. 3.5% Down      11       

Other                                                                         14      

Total Closed Sales 3rd Quarter – 2009              171

Not only is Cash king here,  on top of that prices are not coming down.  The Average List Price to Sales Price Ratio  these 171 closed escrows came in at 102.33% during this time period.

I’ve provided some of the hard data, such as the Address, List Price, Sales Price, Year Built, Days on Market, etc in the link below.   I hope you find it useful and informative.

DUPELX – FOUR PLEX CLOSED SALES DATA FOR THE PERIOD OF JULY 1, 2009 – SEPTEMBER 30, 2009

If you would like a more detailed report or have some interest in a particular property just drop a note my way by clicking here.

MAKE IT A GREAT DAY….!

If Rents Are Going Down…? What Can You Do About it…?

 

Start By Investing in a Good Area.

I know that headline is really something you’ve never heard before…(yes my tongue is in my cheek).

Let’s  assume here that your rental property is in a decent enough area that you haven’t had to take your Pit Bull dog and a side arm with you to collect the rent ok…?

Ok Now What…? Your Property is Vacant…!

Part of the problem in today’s market with turn over in rental units is that many good tenants are moving up to Home Ownership after several years as a Renter.

Those renters are also in competition for the Re-sale Inventory with Investors that have a lot of cash and equity that is looking for a more stable and secure equity position.    We also have low interest rates for those investors and first time buyers that are able to qualify for a loan.  I bet you didn’t know that many of the transactions today are “all cash” with no financing involved at all.

I’m giving you this background to show you that there is competition among many Landlords for the same prospective tenants.

Here’s a good exmaple of what I am talking about.   Our Management Company recently leased up two homes in Folsom, one in the Broadstone area and one in Empire Ranch.   Both of these homes started out at $2,350.  They pretty much had the same amenties, such as Granite Counter Tops, 3 car garages and were well landscaped.  The Broadstone home was a 5 bedroom while the Empire Ranch home was a 4 Bedroom.

During the course of showing these homes, we were amazed at the number of prospective tenants who wanted us  to negotiate a “reduction” in the rental rate we advertized.   Only those propects that were interested in these houses asked us.   All the others…..?    just thanked us for our time, but told us “they were still looking”.  

At first we resisted lowering the rent but as the weeks went on, I realized that the market had changed and become more competative.

And So…?  Yes…. we did in fact lower those rents and both homes now have well qualified tenants.

Don’t forget that during this time period, when our staff met each week to go over our  “available rentals”  that we had on the board,  we’d also discuss phone traffic, comments made at showings,  email inquiries and “pending applications”,  if any.

Our Conclusion…?

We decided to get ahead of the market and to offer specials, such as 1/2 off the 1st months rent,  some “move in date”  flexibilty and an across the board reduction on our asking rents.   This is also a slower time of the year with folks moving and we do have some “unemployment” that is causing rents to be a little flat today.

In addition we’ve kept track of the competition in our service areas so we know what is a reasonable rent for each product we have to offer.

To get an idea of what prevailing rents are, take a survey of the immediate area surrounding your property, contact a property management or two to get their input and do some “web research”    Check out this little information site that I think is useful:   http://www.rentometer.com/  

I don’t want to beat a dead horse here, but please remember that “curb appeal” and “condition” will now play an even bigger part of not only getting top dollar rents, but in the amount of inquiries you receive to get you that great tenant.  Tenants can be picky in a “Renters Market”.  

 

Make it a great day….!

Don’t Forget Curb Appeal When You Fix Up a Duplex Rental..!

Some Before and After Pictures To Make My Case

I probably am preaching to the choir for those of you that read this blog on a regular basis.   However if you are new to this site and are thinking about Investing in Real Estate such as a Duplex, Four-Plex or a Single Family Home, don’t forget to invest in some “curb appeal”.

I’m talking not just the exterior paint.   No I’m talking about landscaping your rental almost like you would a single family home in a nice neighborhood.

Check out this Duplex purchased earlier this year at 9610 Knickers Court in the Rosemont area: 

 Knickers before - 1

Here’s the “before” picture of this property taken shortly before the new Owner started the “Fix Up”.  This is a corner lot and had a lot of over grown shrubs & trees.

 

The Owner did install new roll up garage doors, painted the trim only and put a few $$ in landscaping.  The 3 Bedroom unit on the right does have a Patio Slider off the Master Bedroom.   For a look at what he did see this slide show.    By the way it rented in just a couple of days.

Remember when you add some nice landscaping like the owner did above, you give a prospective tenant some “extra living” space with not only a patio outside the dining area, but also outside the Master Bedroom as well.

 

Now below here is a Duplex that I am a partner in on Lake Natoma Drive in Orangevale.  We had a tenant on the left side that lived there for almost 5 years after we purchased it. When she moved out, do you think it took me long to find a new tenant…?

 Front Page Lake Natoma Drive

Some of the things we did 5 years ago to this duplex were, to paint the exterior & install new roll up garage doors.   We also fixed the sprinkler system & spent a little extra & planted a “big box” Maple Tree. 

 

 

Do you think landscaping makes a difference here?     By the way, this is some what of a busy street, but it rented up after being vacant for only about 3 weeks in late June of this year.

Hey Take a look at this one.   I think you will get my point….

 trovita 1 before

Here is a “before” picture of a former Bank Owned Duplex on a street of large duplexes in Citrus Heights, purchased by a partnership

 

 

 

Click here for a web page that will also show you that if you fix these Duplexes up nicely, you will not have a difficult time finding tenants who will want to pay top dollar to live there. 

So Did I Make My Case Well Enough…?

You are the judge, but all of these units are rented up even though we are in a little bit of an unemployment situation here in the Sacramento Area.

Ask yourself the question, if you were a prospective tenant, do you think you would pick these units over some that weren’t as nicely fixed up when you first pull up to see them….?

I’d appreciate the feed back.

In the Mean Time…?

MAKE IT A GREAT DAY….!