Don’t Be Afraid to Invest in Fixing Them Up.
I know some investors, especially new investors, would like to purchase a Duplex for sale here in the Sacramento area but get discouraged and hesitant after they’ve seen a few of them. The reason it seems, is they need a lot of work to bring them up to a decent condition because most of them are over 30 years old.
There are those Sellers that have done very little, if anything, to improve them much less keep up with the ongoing maintenance. This isn’t always the case but it’s pretty common.
Those Sacramento Duplexes for sale that are updated/upgraded get top dollar with multiple offers in most cases. People forget that construction just about stopped completely in 2008 and continued up until just recently when builders finally ramped up construction of new homes.
What they haven’t built here in large numbers for many years are “Duplexes”.
Since they haven’t I believe there’s a major opportunity for the smart investor. It’s true even if you are a beginner in Residential Rental Real Estate such as Duplexes. Why…? Because Rents are on the rise with the increase in population and not enough housing stock.
There are many good deals out there in my opinion but you have to also be willing to update/upgrade a unit to make it work. These are long term investments and my advice is to fix them up.
I have a great example here for your review. We recently closed a Duplex deal at 10823-10825 Alicante, Rancho Cordova. We kept the tenant on the left side, cleaned up and enhanced their landscaping front and back to add some utility value. We did raise their rent about $200 more per month because they were not at market.
On the right side…? Well we did a “make over”.
Below I have two videos that I did for the owner who contracted with one of our vendors to fix up the right side. One is a “before” video and the other one is the “after”
The first one shows how it looked before… I am narrating and describing what I’m suggesting he do to get it rent ready.
Below is what it looked like BEFORE….
https://www.youtube.com/watch?v=ruV9bSauEb4&t=98s
Below is what it looked like AFTER…
https://www.youtube.com/watch?v=5OGTFmwtFnk&feature=youtu.be
Let me know what you think. We had a duplex close escrow just around the corner for $320,000 and it was in worse condition than this one here.
If you are hesitant about purchasing a property that needs work and you live out of the area…? If you purchase through me, I’ll help you run the project at no extra cost and send you updated videos as the progress occurs.
We then will also manage your investment through our Property Management Company, Haven Properties. We’re just a telephone call or text message away from helping 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
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