Low Inventory of Sacamento Duplexes for Sale

If You Are a Seller – You’re King Right Now.

 

If you are an Owner of a Duplex in Sacramento or for that matter just about any other Residential Income Property, because we have low interest rates demand is high for your property.

CLICK HERE TO GET A QUICK VALUATION OF YOUR DUPLEX

Call me if you have questions regarding your situation.   If you are a Buyer or Seller, we know Income Property.

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker Associate   916.203.1260

Rent Control – Sacramento Duplexes, Tri-plexes & Four-Plexes For Sale

Be Careful With Rent Control It’s a Little Tricky – Affects Cash Flow.

 

I was out and about looking at some new listings for sale.   Below are my thoughts about these particular properties that I think might interest some of you investors.  The sad situation is that for some of these investors trying to sell their property is that over the years they have not maintained their Rental Income at “market”.

Typically many long time small investors make the mistake of allowing the rents to stay the same for years thinking that if they ever did sell, the new investor could raise the rents to market.

With the new State Wide Rent Control law in place it’s not that simple anymore, so beware.

Here’s a look at 3 investments currently on the market as of today February 1, 2021.

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First up is a duplex located at 2405 Wurth Court, Sacramento, Ca 95825.   I think this property could have been better prepared for sale so I was a little disappointed.  While I’d be surprised if they get a full price offer on it in this market who knows…?  Duplexes are hot.   Because of Rent Control when you get a vacancy…? REJOICE... That is because you can re-rent that unit at market.

Check out the Tri-Plex located at 1015 Circuit Drive, Roseville, Ca 95678.  This Tri-plex looks like it’s been well maintained and updated recently.   I think the only thing I’d do to upgrade this one would be to add “covered parking stalls” which would add value and people would pay more for that amenity.   This one should go quick because Rents are at or near market.

Now take a peek at the 4 plex located at 5755 Blachly Way, Sacramento, Ca 95841

I think the Owner on this Sacramento Four-plex could have taken a little better care especially on the curb appeal/landscaping side.   Several Satellite dishes are all over the place.   If you didn’t know, the owner has the right to tell a tenant where they can put a Dish.

The income on this one is also very skinny.   Two of the units are only at $700 a month and with Rent Control it’s a little tougher to get the rents at market.   We’ll keep an eye on out this one.

NOTE:  Regarding the 1st two properties I profiled.   While writing this blog post both of those properties are now currently in escrow.   Even with some Rent Control there are Investment opportunities here in the Sacramento area.

If you’re on the lookout for an Investment please call me at 916.203.1260.   If you are worried about managing your investment, let our crew do that for you.   Check out our Property Management Company if you’re interested.

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker Associate 916.203.1260   Ed@EdFavinger.com

 

Low Interest Rates Help Offset High Priced Sacramento Duplexes

At 12 X’s Gross Income The Cash on Cash Is Skinny… But So What…? Low Interest Rates Will Help Offset the High Prices.

If you are thinking about buying a Sacramento Duplex I would like to warn you that the income on these Duplexes many times is going to be lower than market.   Many Sellers over the years get used to the same tenants and many of them will let the rent slide under market because the tenants have been there so long.

But when they go to sell, it becomes a bit of a problem if the rents are really well below market.

Rent Control Is The Problem with Existing Low Rents

Don’t forget that we have Rent Control.  While you can’t raise Tenants Rents to what the current market is, you’ll be able to raise them each year 5%+rate of inflation.  If a tenant was to move out because they bought a home or moved away that will be the time to get the unit at market.   However in the mean time you’re stuck with them because of Rent Control up to a point.

A Quick Follow Up Review

I wrote about 4 properties a couple of days ago and thought I’d update you with what the Cash Flow would be on each of these properties.   These figures assume you get the property at the “offer price” shown on these Cash Flow Proforma’s.

10996-10998 Hirschfeld, Rancho Cordova – The nicest of the bunch and had the most income.

Click here for the Proforma Cash Flow Analysis

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3416-3418 Viking Drive, Sacramento, Ca  – a 2 bedroom 2 bath unit that is vacant and could be rented at market.  This one looked terrible from the street but I think if the new buyer makes an effort to clean up the front, inside is nice enough we can get a decent rent amount here.   The problem with this one though is the existing tenant on the other side is only at $975 Per Month.

Click Here for the Rent Survey 

Click Here for the Proforma Cash Flow Analysis

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8919 Montoya, Sacramento  3 bedrooms 2 baths on each side – I think the curb appeal could have been nicer.  Rents are high on the side that is updated but below average on the other.

Click Here for the Proforma Cash Flow Analysis 

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9104 Nasreen Drive, Sacramento, Ca – This one was the roughest of the bunch.   I did post a video of the interior of the vacant side.   I think there should be a discount on the price a little deeper than the others because of it’s condition and low rental rate of $850 on the occupied side when it should be at or over $1,350.00.

Click Here for the Proforma Cash Flow Analysis – It’s a Pending Sale if you can believe it.   We’ll see if it falls out of escrow.

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If you are looking for a Sacramento Duplex for sale, then call/text me or drop me a note via email.

In the Mean Time…?

Make it a Great Day…!

Ed Favinger Broker, CRS, GRI, SFR     916.203.1260    ED@EdFavinger.com

 

 

 

Sacramento Duplexes for Sale – A Hot Market – But Short Sighted Sellers

Amazing How Overlooked Curb Appeal is When Selling In Today’s Market.

 

Here are 4 Sacramento Duplexes for sale that I’m going to profile because I’m actively looking to help investors find a decent deal in today’s market.   We do have Rent Control but,  with low interest rates available now, if you have a property that is priced right with rents at or near market, Investors are out there ready to buy.

So while I’m out previewing the available inventory I drove by these properties and in my opinion it’s a “turn off” when an investor pulls up to a property to see dirt in the front with not a bit of landscaping.

Here’s the list and my comments.   Let me know what you think.

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8919 Montoya, Sacramento – 3 bedrooms 2 bath on each side.   It’s sad that while they have a couple of nice specimen Eucalyptus trees, they are just surrounded by dirt that could have easily been a nice cool green lawn.

Nice looking landscaping I think gives the tenants more pride in where they live and having a lush green lawn surrounding these trees would have been simple and easy.   Doing that might also help mitigate and help sell given the fact this Duplex backs up to Highway 50 which might be an objection to some investors

Priced at $465,000Income is $36,000 one unit at $1,800 and one at $1,200.

Click Here for a Rental Survey of this property.

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9104 Nasreen Drive, Sacramento – 2 bedrooms 1 bath each side – Click here for a short video of the vacant side.   it would not take too much to fix this side up.  It would be worth it because of the location in an area of single family homes.   It’s basically an “eyesore” along with the one across the street and this lack of attention brings down the value of the neighborhood. It’s Priced at $415,000.

The rent is only at $850.00 per month for the occupied side and given the condition of the vacant side shown in the video needing work and updates,  you have to wonder about price.   There is an opportunity here but the price should be reduced to make a fair deal for a buyer.

By the way… Click Here for a Rent Survey to see how much was left on table.   The Seller should have raised the rents long ago which would have helped defray the improvement costs to the exterior.

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3416-18 Viking Drive, Sacramento, 2 bedrooms 2 bath and a 2 bedrooms 1 bath configuration.  Absolutely no curb appeal in my opinion.   It’s too bad there’s so much potential here because it sits on a corner lot with some mature trees that need some landscape enhancement and done right would have made this property really stand out.

However, they did some interior remodel of the 2 bedroom 2 bath side – Click here for a quick video tour of the exterior and see the explanation of what I would have done.

Priced at $439,000  Click Here for a Rent Survey

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10996-10998 Hirschfeld Way, Rancho Cordova – 2 bedrooms 2 bath 2 car garage and a 2 bedroom 1 bath 1 car garage.

It’s amazing to me this is the only one of the 4 properties I’m profiling here with some curb appeal.   Guess what…? They have the highest income with existing tenants in place.    Priced at $460,000 the income now is $36,900, with the 2 Bed/2 ba unit @ $1,575 and the 2 Bed/1 ba unit @ $1,500 per month.

Click Here for a Rent Survey    It appears their rents are right at market from that survey.

 

Finally – In conclusion if you are thinking of Selling a Duplex, don’t forget the curb appeal when putting it on the market.  You should also make it a part of the maintenance expense because it will payoff in the long run.

 

In the Mean Time…?

Make it a Great Day…

Ed Favinger, Broker CRS, GRI, SFR

 

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