This Duplex is a Little Ugly, But Can Be a Sleeper Investment.
I’m always out looking for a decent Duplex deal these days. They are hard to find now because of the Covid-19 scare and it’s impact on the Rental market along with some of the California Rent Control laws in place today.
In addition, many Sellers placing their properties on the market today have generally not kept their rents at market for various reason. Existing Low rents because a Seller was afraid of a vacancy have now made it a little harder for a Buyer to “pencil out” the cash flow for the “asking” price.
The only reason, in my opinion, sales are still occurring is because of the historically low interest rates. With a low interest rate, even with rent control, you’ll be able to increase your rents every year. If you’re a smart investor and make it a policy to keep raising your rent when you can, at some point, you’ll get the cash flow you wanted while building of equity and paying off the loan.
When a unit comes up Vacant, that’s the time to dress it up some. You’ll be surprised at the amount of rent you’ll get and with “multiple applications”.
I previewed the property and produced videos for each side which are below.
Video Below is of the Right Side
Video Below is of the Left Side.
CLICK HERE FOR A PROFORMA CASH FLOW ANALYSIS. Please keep in mind that figures shown here do not reflect the condition of the property. I think you’d have to get this property for about $15,000 – $20,000 below the list price and be able to add value by updating/upgrading the units some.
I would also pay attention to the Curb Appeal which is sorely lacking.
If you are thinking of buying a Sacramento Duplex, Four-plex or a small apartment building, please call me at 916.203.1260 or drop an email my way at Ed@EdFavinger.com
In the Mean Time…?
Make it a Great Day…1
Ed Favinger, Broker Associate, CRS, GRI, SFR