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Is Rent Control Coming To the Sacramento Area…?

It’s Not Just Rent Control – They Add Costs Onto Owning a Rental

I have an article here that I recently received from the RHA (Regional Housing Association of Sacramento Valley) with a list of ballot measures in several San Francisco Bay Area cities regarding “rent control”.

It’s not just that they want to limit the amount of rent you can charge, they also want to make it more difficult to get rid of bad tenants by instituting “just cause eviction” laws as well.Image result for the rent is too damn high

Just Cause eviction rules eliminates the “termination of tenancy” that we can currently give a Tenant in our area without stating a reason.  Just Cause rules would require a hearing at another government run board or authority that would hear your case and probably take the side of the Tenant unless you had massive amount of documentation to support your position.

Some of these measures would limit causes of action to evict a tenant to 8 or 9 specific reasons.

For many investors, this is why they hire a professional property management to make sure they are “in compliance” because of all the rules changes and regulations that vary from locality to locality.

Take a look at this article from RHA and think it over.   Land use decisions do involve you and when you can’t build housing because of all the NIMBY’ism, this can be the result.

I think you’ll be appalled at what they are proposing.   It is scary in my opinion.

RENT CONTOL ON THE BALLOT IN FIVE BAY AREA CITIES

Let me know what you think.

In the mean time…?

Make it a Great Day…!

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

 

Want Higher Rents in Your Sacramento Area Duplex…?

 Higher Rents Will Boost the Sales Price When You Sell

I profiled a Duplex for sale located at 2719 & 2721 Bravado, Rancho Cordova in an recent Blog Post dated August 22.

Well here’s the here’s the update…!

After 52 days on the market starting at $259,000 it’s still for sale and they have lowered the price to $240,000.   The current rents for this Duplex for sale are at $850 and $900 for a 2 bedroom 1 bath unit on each side with a 1 car garage.

When I wrote about it originally a month ago our Property Management Company was in the process of helping one of our investors complete some landscaping repair and enhancement to his Tri-Plex directly across the street at 2720-2722-2724 Bravado.

Below is this video of the Tri-Plex landscaping work that was completed.  Before and After.

 

Now…I think you’d have to conclude curb appeal does help you get higher rents and therefore a higher sale price.

Because,  when we completed this work, we gave all the tenants a rent raise notice.   We increased the total monthly rent another $300.  Not one of them wants to move.  Their average is $1000 per month and they are smaller units than the Duplex.

This Duplex owner could have done this work a year or two ago and had higher rents all along.   It probably would have sold for near his asking price or maybe more, but he didn’t.

I think this could be the right deal for the Investor who wants to “add value” to an investment.    You increase not just the value when you do, you then are a contributing part of a neighborhood with “pride of ownership”.  You will get a much higher return in the long run and feel good about owning a nice property.

 

What do you think…?

In the Mean Time….

Make it a Great Day…!

Ed Favinger, Broker CRS, GRI, SFR, CDPE  916-203-1260

 

 

Do You Think The Curb Appeal of This Duplex is a Plus or a Minus…?

Would you put this on the market the way it looks now…?   Would a Tenant Pay More to Live There…?

I just had to pass this on to those folks that are thinking of buying a Residential Investment, such as a Duplex, a Four-Plex or an apartment complex or even a Single Family Home.

People will make an instant judgement about a Duplex for Sale just about as soon as they pull up to the curb.

This Duplex I’m profiling here today is located at 2719 & 2721 Bravado Drive, Rancho Cordova.  Despite it’s poor curb appeal, it’s on a corner lot that backs up to one of our other Investors who have been outstanding in helping create a nicer neighborhood.

In this slide show, we’ll show you the “subject property” and then you’ll see the other units our Property Management company currently maintains.

This Duplex closed escrow back in December of 2013 at a sales price of $161,000.   The new owner hadn’t done much if anything since he’s had it but,  now wants absolute top dollar.    His rents currently are at $900 and $850 per month and they should be at $1,000.

Generally in my opinion, I think investors who skimp on curb appeal and landscaping are leaving dollars on the table in returns they would otherwise have received.   Not only in a higher sales price, but higher rents during their ownership as well.

Tenants will pay more for a nice pad.    Let’s see if he gets his price because I think it’s worth no more than about $245,000.

CLICK HERE for a proforma cash flow analysis.  It’s really ugly in front but just needs some TLC…..    So, overall,  I think this could be a nice investment given that the surrounding properties have a lot more “pride of ownership” then this owner and it won’t really take that much to bring it up to par with the neighbors.

 

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

 

Thinking of Buying a Rental Property – Good News Here About Rising Rents

It’s a “Landlord’s Market”…!

Bisnow.com has the Sacramento Area at #2 Fasting Risings Rents.

Now, if you haven’t heard this before in other media & news outlets such as the Sacramento Business Journal article they wrote a few days ago or maybe you’ve not seen this article from a few months back about rental rates in the country in general,  you might think this is something going that is new.  Well, its not new to us.

Folks, anytime you see something in the mainstream media such as the news paper or TV regarding anything to do with real estate, trust me, it’s old news.

That’s because anyone in real estate who is involved in Investment Real Estate or Property Management will tell you it’s old news and has been for a while.

Let me give you an idea of what it’s like out there now.   In Folsom, where our office is and also where I live… I tell people all the time about the rental market this way.  “If you are a Renter, you almost have to know somebody inside to find a decent rental to get into.

So bottom line is if you are thinking of buying a Duplex, Four-Plex, an Apartment complex or even a single family home or condo, you’ll be able to rent it today for top dollar.

We specialize in the Sales and Management of Residential Income Property so let us show you how to make the most $$$ out of your investment.

In the mean time…?

Make it a Great Day…!

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

 

Twin Pines Apartments – Rancho Cordova – Twelve Units – A Sleeper Investment

Across the street from the new Folsom Lake College Extension.

If you have been looking for a small apartment complex with “upside” I think you might have found it here.

This one has a mix of (8) 2 bedroom 1 bath & (4) 1 bedroom 1 bath apartment units.   All have dishwashers, gas stoves, patios/decks, central heat/air and lots of off street parking.   I do have an estimate for “covered parking” to be installed, which I think would be a big improvement and allow for an increase in rental rates.

The Owners have recently painted the exterior, made el caprice #1updates to the roof, replaced the site’s water heater and completed a lot of dry rot and satisfied all of the City of Rancho Cordova code enforcement issues.

The tenant profile has been upgraded as well.

CLICK HERE TO GET A SLIDE SHOW OF PICTURES THAT INCLUDE THE COLLEGE ACROSS THE STREET

You can also get a copy of the Cash Flow Figures here.

If you take a drive to see this you’ll see that the college is almost done.   They are putting in the landscaping and the parking lot across the street is just about completed as well.

You’ll also notice a pretty good sized open area that has some additional potential and is part of the “Mather Mills Opporunity Site”.  The Twin Pines Apartments are across the street as you can see in the aerial shot that is bounded by yellow.    Click on the link below to get more information.

el caprice aerial view

 

The Mather Mills Opportunity Site

 

 

If you have any questions regards this Apartment Complex or any other apartments, duplexes or four-plexes for sale, contact me anytime at:   916-203-1260, favinger@rwnetwork.com

In the mean time…?

Make it a Great Day…!

 

Related articles

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

 

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   

A Roseville Duplex For Sale – A Total Remodel…!!!

And it cash flows too…!

For those of you looking for a Real Estate Investment property that doesn’t need a lot of work because of “deferred” maintenance, then you might want to consider this property.

116 Hickory Drive in Roseville has had a big time make over.    We are currently renting up the units at $1,200 per month and have one pending application now.

Click Here for a copy of the Proforma Cash Flow Analysis.   We are currently marketing it to tenants with them paying for the Water, Sewer and Garbage.   The cash flow figures however show the owner paying for this along with Property Management and Landscape Maintenance.

If you want to schedule and appointment to see this property please call me at 916-203-1260.

In the Mean Time…?

Make it a Great Day..!

 

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

 

Sacramento Millennials – Probably Going to Rent for a While Yet…

More old news from the Sacramento Bee

You know it was just a few days ago that I was opining about the rental market here in the Sacramento Region.

It’s supposed to be a great market if you are a Landlord.   I agree and I can speak with a little authority because our Property Management Company services about 350 units all over the area,  so we know what rents are and what tenants are looking for.

Sacramento River Front

Sacramento River Front (Photo credit: Wikipedia)

Anyway… Here’s an article from last Saturday’s Sacramento Bee, front page and above the fold that I thought I’d share with you to make my point.

Sacramento-area millennials are putting off homeownership

Every article I’ve read from trade publications around the country show this trend is going to last for a while… they say.

Here’s an article from the Sacramento Business Journal recapping some of the big “multi-family” deals in there area.

You’ve just got to know that if big funds are moving into large complexes the same fundamentals they see will work for small investors as well.

Bottom line…?    If you are thinking of getting into the Rental Real Estate market, it looks like you’ll do well and not have a big problem finding qualified tenants.

You will have competition from other rentals so don’t forget that you’ll need to maintain yours in great shape.

 

In the Mean Time…?

Make it a Great Day…!

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

 

If You Are a Landlord – Some Good News For You

Rents in this area are up

 

However, if you have been a regular visitor to this blog site, you already know this.   When ever we get a vacant rental, it’s very rare that our 3d House (XXL)Property Management Company will re-rent it at the same rate when it was given back to us at move out.

In addition, when renters elect to “re-up” a lease at the end of their term, we generally raise the rent some because the market will allow us to.

Along with the increase in the amount of rents landlords can charge, we’re also seeing some of the other costs associated with running a unit being transferred to the tenant.    Most notably some of the city and county utility charges, such as Water, Sewer and Garbage fees.

This is especially true for owners of Single Family Homes/Condos and Duplex units in this area.   It’s rare that we have much,  if any,  objection when we have included theses charges in a new tenant’s lease.   On occasion instead of raising the rent on some units at lease renewal, we’ve adjusted the new lease to include some or all of those utilities.

Here’s a HousingWire.com article with a survey of rental rate increases in the largest markets Zillow covers in the US.    While I’m writing this I’m listening to a morning radio talk show out of the Bay Area and guess what the topic is…?  Yes high rents and how people are driving long distances to get to work.

In conclusion it’s better to be on the Landlord side right now and if you have been thinking of getting your first rental, trust me you’ll have no problem finding a good tenant these days.

 

In the Mean Time…?

Make it a Great Day…!

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