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Being a Landlord is Rewarding… But You’d Better Beware..!!!

This Property Came Back into the News Yesterday in the Sacramento Bee and it’s not a Happy Ending.

 

 

 

This article is basically an Update on the Story I wrote last year…  A Lesson In The Costs of Not Maintaining Your Rental Property

 

The final outcome was announced in yesterday’s “fish wrap”.

Take a minute and read the link above and then read the story from the Sacramento Bee.   The Headline below will give you a nice clue as to what happened.

Tenants win settlement over conditions at Rancho Cordova apartments

What happened to these former owners is that they “ignored” complaints from some of the tenants about Vermin, Mold and some Safety Issues.

When you are a Landlord, you can’t ignore problems like this.  In an apartment complex, a disgruntled tenant with a legitimate issue that is ignored will spread the word and all of a sudden, everyone will want to get on the bandwagon thinking there is a “big payday” at the end.

In this case this it what happened and it didn’t have to be.

I don’t care what kind of property you purchase, a single family home, a Duplex or even an Apartment complex these issues will come up from time to time.   Most of the time they are minor and can be mitigated if you act early and never ignore it.

 VERMIN… VERMIN…VERMIN…

Failure to remedy an infestation of vermin, such as rats/mice/bedbugs/roaches or mitigate water damage that will lead to a mold problem will cause you to be up against a Code Enforcement officer and might even lead to a nasty lawsuit that will cause you to lose your investment.

I’m not trying to scare you about investing  in Residential Real Estate… My goal here is to educate you so you can avoid this  kind of problem.   Failure to act will bring on another kind of vermin…  The “hungry” litigation Attorney. They love to sue landlords because they know there will be a big insurance payoff to them and maybe a little bit of $$ for the victimized tenant.  Just beware ok…?

Below are some articles I’ve picked up from the internet that will give you some insight as what these critters are and what they do.    Like I said, just be aware and never ignore them.

Meet the Critters Inside Your Mattress – Al Hofer’s South Florida Pest Blog

Vermin…Who is Responsible – From the UK blog – Property Management FAQ

 Top Dog Pest Control – Info and Links to California Landord Tenant Law Information

 Mold…Mold…Mold – Don’t Be Scared – just be informed – Regarding Obtaining Insurance for your property

 

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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A Bank Owned Home and A Duplex Profiled Here…

How Many Offers Will They get? And… How Many Will Be Cash ?

Who knows but it seems every home or duplex that I have taken a look at has had multiple offers.

The Sacramento Bee today comes out with another story in today’s paper about how “cash is king” in home shopping.

Anyone who has been in the Real Estate business as an Agent or Broker has known this for a while now.   If you are an Investor or Home Buyer that has been searching in this market to make a purchase in the last few months,  the SacBee story didn’t say anything new to you, did it..?

So let’s take a look at a couple of properties here that I’ve recently seen.   One is a single family home in Elk Grove that is next to a home that I listed last May at 2220 Yarnell Way.  By the way, we had 13 offers on it.  The other is a Duplex near the Carmichael Area.

The House – 2216 Yarnell Way, Elk Grove – a monster 3 bedroom 2.5 bath with a large bonus room that should be converted to a 4th bedroom if you are an investor looking to rent it out.   It’s listed at $225,000 and has 2600 sq ft of living space.   The listing agent said he’s not going to look at any offers until the 5th of September, so you have time.

Click here for the video walk through I did on Sept 1st.

The Duplex – 5208 – 5210 Shereen Court, Sacramento, Ca –  A large duplex with 3 bedrooms 2 baths & 2 car garage with a 2 bedroom 2 bath & 1 car garage that is listed at $259,000.   I personally think this is a little high but in this market who knows.   When I did the walk through I noticed a business card from another agent was left on the kitchen counter so I sent her a “text message” asking her for her opinion.   She also thought it was too high but did say her client was going to write an offer on it.

Click here for the video walk through of the Vacant Unit only.

Click here for a “pro-forma” cash flow analysis based upon the existing rents in the occupied unit & rents at $1,000 for the 2 bedroom 2 bath unit.

 Oh and by the way… These properties above just came on the market a few days ago.

 

Make it a Great Day…!

 

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

 

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Thinking of Buying a Four-Plex in this Area…? Better think twice is all I’m saying…!

Why…?  Well Read On and you’ll see why…

 

I was asked by a client to drive by and check out two  Four-Plexes he saw on MLS, one at 7816 Sayonara drive pictured here and another one at 7857 Sayonara Drive.

They are currently listed at $269,000 and$279,000 respectively and in my opinion show an income that I personally think might give a great “on paper” cash flow but that does not tell the whole story.

The City of Citrus Heights has done some great work in cleaning up the street the last few years.  Their solution was to just tear down about half of the 4-plexes on the street.  They have built a small community center and are working on creating a park there with the “new open space”.

Anyway… I was out there yesterday and took a short exterior video of these two.   I was “confronted” near the end of the video shoot.    Here’s the video  You’ll hear voice near the end asking what I’m doing.

If you want more information about this street, all you have to do is “google” Sayonara Drive, Citrus Heights and you’ll get a lot of information.   I’ll give you a link here to start with that I got from the City of Citrus Heights.

As you might imagine, I’m not a big fan of 4 plexes in this area and if you are thinking of buying one, just be prepared is all I can say.   I will say though at least the City of Citrus Heights is being “pro-active” in cleaning up what has been a troubled area for a very long time.

Make it a Great Day…!
Ed Favinger, Broker, CRS, GRI, SFR, CDPE    916-203-1260    
favinger@rwnetwork.com

 

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Some Sacramento Cash Flow Opportunities I Like..!

I’ve got profiles of a Duplex “Flip”, A Short Sale Duplex & a 6 Unit Complex.

 

 

Let’s talk about the Short Sale Duplex 1st.

6813-15 Greenback Lane, Citrus Heights – Listed at $129,500 a few days ago.  They are accepting offers tomorrow, August 20th around 6PM.    This will get multiple offers..!

Click Here for a Pro-forma Cash Flow Analysis     Click Here For the Exterior Video

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Here’s a “Flip” Duplex.

6604 Summer Rain Way, Citrus Heights, Ca – Listed at $214,888.   2 bedrooms 1 bath ea side.    Rents should be at $1,000 per unit on this street because our company manages a unit a couple of doors away.  One unit is vacant and the other is reported to be renting at $750.00  per month.

Click Here for the Video of the one vacant unit

Click here for a video of the Duplex we manage just a couple doors away for comparison

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You have to take a look at this 6 unit deal located at 1911 El Monte, Sacramento, Ca.    It consists of 6 separate single family homes on one lot.  Listed at $299,000 I think this is probably one of the better deals out there now.   The problem with this one is that it must be a cash deal because its difficult to get multi-unit financing with loans below $500,000.   They’ve had a couple of deals fall out because the Buyers could not get financing.

Click Here for the Exterior Video and I’ll think you’ll agree with me that this is a “unique” property.

Click here for a list of expenses I got from the listing agent.   I don’t know if these are annual figures or..?  The reason I say that is because they look high for some reason.  You will notice there is a “gas” utility bill included which would be unusual in a situation like this.   This is something you’d have to clarify of course in your due diligence review of their income and expenses.

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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Eviction Troubles…?

I have an eviction 4years ago and can’t get anyone to give me a chance.  Im a single mother needing a place to call home any ideas?

This questions was asked by a lady who is a reader on Trulia.com and is seeking help with her situation.   Take a look at the answers I and other professionals had to say.

If this is a problem you are currently experiencing or know a friend that has this problem, then pass this on to them as well.

Click Here for The Solutions We Gave Her…

 

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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Who Pays for Pest Control Reports…?

An Interesting Subject Especially When a Bank Loan is Involved

This was question from a reader on Trulia.com a day or so ago.

Click on the link below and see what I and other Real Estate Professionals had to say.  Pay attention as to why you don’t want to even include a Pest Inspection in your offer if you are using the C.A.R. contract forms.

It’s a function of today’s market.

I think you’ll find the short read interesting and informative.

Pest Inspection – Who Pays..? In So Cal..? In Nor Cal..?

In the Mean Time..?

 

Make it a great day…!!!

 

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

 

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Cash Flow Anyone…? I Haven’t Seen One Like This in a While..!

Somebody is going to jump on this one.

 

I think this is a “wow”…!   Because it’s a very unique and small apartment complex and located in a neat area with a mix of  Single Family Homes, Duplexes & one other small apartment complex on the street.   It’s Listed in a Price Range of $590,000 to $590,888.

The Neighborhood does show some pride of ownership with most of properties in better than average condition.

I’ve taken an exterior video of the property and immediate area.   Click on the Picture here to get a short exterior view of the property.

I’ve got the cash flow figures here and they look pretty darn good.  They do have one vacancy now.     By the way…  I did call the various agencies and verify most of these expenses… so what you are seeing will be close to “actuals”.

Click Here for the Pro-forma Cash flow Analysis

We manage two duplexes on this street and they are pretty easy to rent up.

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

 

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You’re From the Bay Area and Thinking of Buying an Investment Here…?

And Schools are an Important Factor to you…?    See what I and other professionals here had to say to a question on Trulia.com…

The question from an investor in the Sunnyvale area of the South Bay area of San Francisco had to do with his curiosity about the Sacramento Region.   A big concern of his was the quality of the schools here.

The reason  Investors have that as a concern is that they know that in areas of great schools people will pay more for the price of a home and pay for more for the privilege of living there in rent.   The reason is you will get a better class of tenant if you will.

Investors know that people who are concerned with the quality of schools are also concerned about the quality of the education they will receive for their kids.  It  also means they will be great tenants for their investment.

Since prospective tenants will pay more to rent in an area if their kids will have access to great schools, the investors know their property will grow more in value as time goes on.

What makes “great schools”…?   My opinion is that great schools exist is because of “Parental Involvement”.   That’s what you see here in the areas we discussed in our answers to the question of this investor on Trulia.

 

 

Click on this link and see the advice we gave an Investor in the Bay Area.

 

 

 

 

In the mean time…?

Make it a Great Day…

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

 

 

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Open House Today – See What This Owner Has Done…!!

This  Home was a Bank Owned/REO.

Come on by today at 12:30 – 4:00 PM to 3900 Arderly Court, Sacramento, Ca 95826  and see what a “flip” looks like.   An Investor picked this up cheap and has taken the time and $$ to make this Bank Owned Fixer into a nice home

As you will see in the video link it really has it all.  New Kitchen with Granite Counter Tops, new carpet, paint, new wood laminate floors in all the high traffic areas along with new carpet in the bedrooms.   You’ll love the bathrooms and we put in some nice window coverings as well.

Come on out.. but if you can’t enjoy the video…by CLICKING HERE.

 

In the Mean Time..?

Make it a Great Day…!!

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

 

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A Tenant Caused Problem That an Addendum Protects You From

I’m talking about damage that installation of a Satellite Antennae can cause.

If you haven’t experienced this issue, let me inform you the law provides that you must allow a tenant to install a Satellite Dish or Antennae if he or she wants to.    

However, you as the Owner/Landlord have some rights.

You can dictate where they can put it and if the only area that you allow it to be installed does not give adequate reception, this is not your problem.

We recently had a tenant at one of our Esplanade condos here in Folsom  install a Dish on the exterior wall of the building which caused him to bear the costs of removal and the HOA fine.   He never got our permission to install it in the first place.

We had another tenant in a Single Family home here Folsom who decided to install a Satellite dish in the attic.    The contractor/technician that installed it damaged a brand new HVAC system to the tune of $1,500.   Guess who’s responsible for that…?

To eliminate any ambiguity as to who pays for the damage this issue might cause, we use the California Apartment Association’s  “Satellite Dish/Antennae Addendum” in all of our leases.    Tenants “must” get our permission to install a Dish or Antennae.

Using this form will put the responsibility on the tenant to maintain your property and not let them off the hook if they damage it by the installation of a Dish.

Just one more reason to use a professional property management company…!

 

Make it a Great Day…!

 

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

 

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