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A Vacant Sacramento Fixer-upper Duplex For Sale

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”.

Here’s a link to the MLS info on the Fixer located at 3840-3842 Walnut Avenue, Carmichael.

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

 

 

Back Yard Landscaping is Important in a Rental – Don’t Overlook It…!

Check out this graphic from the California Association of Realtors.

Back Yard Landscaping is important because some of these people also rent as well.   While this graphic applies to Home Buyers, trust me as a property manager and investor with 35 years of experience, don’t ignore the back yard for your renters.

A back yard with patios and landscaping is a cheap addition to “living space”.   With the great weather we have here, it makes sense to give the people who rent from you more value don’t you think…?

So if you want more money from your rental investment, fix up the back yard and watch how much your tenants appreciate it because they will pay you back with higher rents.

Click here for a picture of the back yard landscaping of a Duplex we manage for an investor that took our advice.    In a few more years the shrubs around this  yard will provide a lot more shade, privacy and of course more value if they ever decide to sell.

That is because they get more rent then other properties like this that do not have this upgrade.

Let me know what you think.

 

one cool thing yards

 

In the mean time…?

Make it a Great Day…!

Ed Favinger, Broker CRS, GRI, SFR, CDPE

Is This a Good Sign That Real Estate is Back in Sacramento….?

I think so… especially when you see this kind of news.

 

HOME DEPOT SET TO HIRE 1500 IN THE SACRAMENTO REGION

You have to agree if these large big box corporations like Home Depot are on the hiring binge, they must have a lot of confidence they are going to need this many people to accommodate their customers.

I noticed here in Folsom, that you can go to the local Home Depot, Lowes and Orchard Supply and you’re going to find a lot of people in there doing some shopping.

This is the spillover effect of a good real estate market for Home Buyers and Sellers along with residential investors.

What do you think…?

 

In the Mean Time…?

Make it a Great Day…!

 

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

 

 

A Couple of Unique Bank Owned Homes in Folsom

One Is “Rent Ready” if You’re An Investor – The Other Needs a Little “TLC”.

I”ve been out and about more these days, since the local weather here has been so great, looking at a lot of homes.   I’ve got a couple here that are interesting.

Some features they both have in common are they are both located near parks, open space and the trail systems which are all over the City of Folsom.

The 1st one is located at 1176 Grey Fox Court, in “The Parkway”  and is priced at $310,000.   As of today, January 5th it still shows as an “Active” listing.   Located on a Cul-De-Sac, it’s just a few doors away from the Parkway Trail system and Nature Preserve.

Video is below

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The 2nd one is located in the Ridgeview neighborhood at 726 Hunter Place.   It’s got a nice corner lot orientation with some privacy that  includes almost 2,600 sq ft ,  4 bedroom 3 full baths, pool and spa.  Priced at $399,900 it’s also located just a few steps away from the neighborhood park and bike trails.

Video is below

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

 

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Folsom Lake Views and City Lights Included for Free on this one…

Check Out This Home I Was Previewing for a Buyer.

I was up in El Dorado Hills looking at homes and thought I’d share this, because it does have the views… almost a 180 degree view.    It’s got a monster lot to go with it,  but you will need to have the landscaping finished to make it special.    According to the listing agent they have plans already drawn up.   I haven’t seen them, but half the fun on something like this deal is to design something yourself.

While they said they were going to put the MLS Lock Box on it today, when I was there around 12:30 or so, they didn’t have a key in it so I was not able to do a full preview.   That’s why you’re only going to get a video with just an exterior view for now.

But hey… for $850,000 we’re going to through in the Folsom Lake and Sacramento Valley lights for free…!!!

You can click here for more information about the house and then look at the video below.

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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Update on Some Recent Duplexes, Four-Plexes & Homes That Have Been Profiled Here….

I’m Still Amazed At the Amount of Investor Interest There is for Duplexes.

 

Here’s a list of properties that I have profiled in the past.  Some in the last few weeks and others earlier in the year.  I wanted to make this update because I’ve been busy working with some folks that have failed to get an offer they have submitted approved.   That’s because of the competition for quality investments.   It’s a frustrating experience for Buyers.

You know,  while you might hear stories out there from the State and National Network News regarding the lousy economy, areas like the San Francisco Bay Area and the Sacramento Area along with the Coastal Areas of Southern California are doing a “robust” business when it comes to real estate.

“Multiple Offers” are the normal course off events when a new listing comes on the market.  I’ve written about it,  I think,  for well over a year now.  Others in my business have also expressed the same experiences.   There are areas of exception of course,  but I’m referring to, I guess, for lack of a better term, “the preferred” areas… the areas that I have been to the most and written about here.

I’ve also included some properties I may not have written about before as well.   The purpose behind this is to show you how much work many of them may or may not have needed to get into a “rent ready” condition.

So if you are out looking now for an investment property whether it’s a Duplex or a Four-Plex you’ll hopefully get an idea of what other investors have done and have been up against like you.

The Following Are Closed Transactions:

2358-60 Imran Court, 2bd/2ba/1car & a 2bd/1ba/1car – Listed at $180,000 – Was a Short Sale – closed escrow 11/20/2012 Sold for $180,000Click Here for the video   which was uploaded 1-8-2012.  The wait to close this short sale was worth it.  You can’t find a duplex like this for the price they closed it at.

6604 Summer Rain Way, Citrus Heights, 2 bed/1 ba each side – A “flip” that I thought was listed too high back in August at $214,888 – It finally closed just  a couple of days ago, Dec. 20th,  at $201,800.    Rents were only at $750 on one side – we manage a duplex just like this one just two doors away from here and get $950.    Here’s the video of the vacant side

Here’s some that just came on the market and are now “Pending Sales”

6535-37 Hazel, Orangevale, Ca, 3 bed/1ba each side – Was Listed at $179,900 but then lowered to $159,900, which made it a much better deal.  You’ll see why it didn’t sell for the higher price by going to the Video Here.

4341  Alsace Ct,  Fair Oaks, CA  95628   – Was Listed at $425,000 – Duplex with a 3 bedroom on one side located in an area of mostly single family homes.   This is an interesting property that would be perfect to live in one side and rent the other.  Let me know what you think of it after you see The Video Here

3107 – 3109 Laurelhurst, Rancho Cordova, 3 bedrooms/2 bath ea side – Bank Owned – Was Listed at $155,400.   An Investor I’m working with offered $171,000…. AND DID NOT GET IT..!  Check Out the Video

3283 Cambridge Road, Cameron Park, – Single Family Home that had been priced much higher at $309,900 but then lowered to $269,900.  I had a buyer make an offer but it was also not accepted because others had out bid us.  Click here for the Video and more.

I will have more examples coming later….  

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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A Bank Owned Home in Cameron Park – Been Sitting There A While Too…!!

That’s because they had it priced to high – they’ve just lowered the price to $269,900 and now it’s getting action.

I was out there today looking at this home for a client of mine and thought I’d share this video with you.   This one is located at 3283 Cambridge Road, in Cameron Park.   It’s just a few doors away from the Cameron Park recreational area and lake.   You could walk there to see the 4th of July fireworks show they put on every year.

If you are commuter to Folsom or the work centers along Highway 50…?   This would be a great spot to land after coming home.

At around 2,200 sq.ft., it’s got 4 bedrooms 2.5 baths a monster lot with plenty of room for your boat or RV.

I’ll let the video do the talking… 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

 

 

Ok… I’ve Been Asked to Review Some 4-Plexes again

I think these are so out of style.

I have some folks looking at investing in the area and interested in 4-plexes because the cost per unit is lower and there’s the potential for a higher cash on cash return.

While I might agree with that on paper, reality is that the type of 4 plexes they’ve built in this region are some of the most basic of rental units.   I guess the term “bread and butter” units would be what you’d hear most often when discussing a property like this.   As I said, they are basic apartment units with not much in the way of amenities…. “bread and butter”.   No yard, no central heat and air, no fireplaces, some don’t even have dishwashers and no covered parking or garage.

This property is located at 4569 Ashcroft Avenue, Sacramento – the Foothill Farms area.  All of the units are 2 bedrooms, 1 bath.   They have wall A/C’s and gas wall heaters.   There is a laundry room for this building.

Rents should be at $700.00 per unit for an annual income of $33,600 which gives you a gross rent multiplier of about 6.84 and about an 8-9% capitalization rate if you only have about 40% of gross rents as your expenses.

There is an HOA that takes care of the grounds and just recently resurfaced the common area driveways.

One of the things I do like about this property is that you have to drive through a street of single family homes to get to it and it’s at the very end of a dead end street.

I’ll let the video below do the rest of the talking

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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Have We Reached the Bottom and Starting the Crawl Back Up…?

This Article From Today’s Sacramento Bee – Just More Evidence It Has…

Sacramento area home sellers again walking away with cash

By Hudson Sangree and Phillip Reese

hsangree@sacbee.com

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Trying to find a Duplex for Sale…? You aren’t the only one…


It’s the Rush to Cash Flow….

 

 

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Sacramento Real Estate,  especially in the Duplex sales market, has seen a lot of activity and of course “multiple offers”.   And it always seems there’s more than one or two buyers interested in each one that comes up.

Lets talk about the latest one I’ve profiled.

3107-3109 Laurelhurst Drive, Rancho Cordova, Ca – 3 bedroom 2 baths, 1 car garage on each side.   Central Heat and Air of course and wood burning fireplaces.

Click here for a copy of a “pro-forma” cash flow analysis.

Click here for comparable sales information of Duplexes close by

 

By the way….  While I was there… a couple from Vacaville dropped by because their agent gave them the address check out.   They saw the door opened and decided to come in.   This one just came on the market yesterday.

So I know there’s at least two buyers looking at this one.

 

 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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