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You Know the Market is Hot when the Sacramento Bee Reports It…

Several Recent Positive Stories & Now Even a Local TV Station is reporting on it too…!

Of course those of us in the Real Estate business have been talking about this for almost a year now.

Take a peek at some articles in the SacBee just in the last few days which kind of prove my point:

Here’s a story that the local NBC station, KCRA posted on line that was shown earlier today.
I wrote an article with some data that I posted regarding duplex sales about 10 days ago.
Below is a video walk through inspection I did on a property last Saturday in the Rosemont section of Sacramento for a Bay Area Investor.     We made an “as is” cash offer about $8,000 over list price but didn’t get it because we were out bid.   The listing agent said they had 13 offers on it.    This video will give you an idea of what’s out there.

 

Come back tomorrow because I’ll have a video of a Short Sale in Folsom that had 10 offers on it.

 

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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Some New Duplex & Four-Plex Listings Just Hit the Market… My Evaluation and Comments Below.

Let me know what you think..

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While I know that most of us are taking some time off for for Thanksgiving and getting ready for the Christmas holidays coming up, the sales of Residential Investment property in the Sacramento Region is still moving along.

I’ve been out and about looking at these properties to keep current with the market and came across a couple that I think are interesting.

Lets start with a couple of Duplexes first.

I think this Duplex is under priced even though it backs up to Madison.   They do say there is some needed fix up, but it can’t be all bad if they are both currently occupied.  I am of the opinion,  that if they were fixed up, the rents would also go up to compensate.   You don’t see these kinds of duplexes on the market all that often.

This is a nice neighborhood with single family homes across the street while on this side of the street is comprised of these larger duplexes that are perfect for the owner to live in one side.  The Video I took didn’t do the area justice.   This area consists of well manicured properties showing pride of ownership.

Click on the Address above for a video link.    Click here to get a “pro-forma” cash flow analysis.

Noisy street yea… You can’t move the street but inside though it’s quiet enough.   One unit is in need of a “big time” fix up so now would be the time to update it.  It does sit further away from the street and has more privacy with a good sized back yard.

You should be able to rent those units for $1,000 a month FIXED UP of course.  Orangevale is a pretty good rental area and inspite of the busy street there’s some folks out there that like a country feeling and I think this one kind of has it.

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Now for a couple of Four-Plexes.

Click on the address for a video. A Proforma Cash flow is here.  I’m pretty familiar with this area.   We manage a four plex up the street.  I would call this a “bread and butter” type of property.  This will cash flow, but you do have to manage it carefully.

Rents vary from $720 to $729 per unit with a Gross Annual Income of $34,776 according to the information provided by the listing agent.   For an estimate of what it would bring in just look at the cash flow estimates in the Tiara Way property above because the expenses aren’t going to vary much.    This one has already had an offer accepted but had since fallen out as of the date of this article.

Now might be the time to make a deal on this one.    Still shows active.

Finally… If you are an investor looking to jump into this market and have questions regarding any of the above properties or you are new to this area and want more information, please send a note or call me.

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 Nice Looking Duplex – Nestled Among Single Family Homes

 

I Wish There Were More Like These on the Market because they are probably the most popular.  Check out the information and the video too…!

 

While out looking at Duplexes that have just come on the market the last few days,  I ran across this one.   I have a client that has purchased some property just around the corner from this property and others in the Rosemont Area.

This Duplex is located at 4001 and 4003 Westporter, Sacramento.    It’s got a configuration of 2 bedrooms, 1 bath and 1 car on each side.   The listing agent has the rents shown as $825.00 for each side but I know these would rent for more.    I think you could get at least $895.00 for each one even though they are smaller units than some of the duplexes we are currently renting not far away from here.

The reason is the location…!

For the Pro-Forma Cash flow figures CLICK HERE.

CLICK HERE FOR MY WALK THROUGH VIDEO

Let me know what you think of this one…   You’ll see that it doesn’t need much work.

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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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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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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Well It’s About Time This Duplex Had a Price Reduction..!

The Reason Why is Because It Does Need Some Work.

 

I was out there again yesterday afternoon  after showing this to a prospective buyer earlier in the morning.  The reason is because after getting back to my office I noticed that the listing agent had reduced the price to $181,100 from the original asking price of $197,900.

When I saw that change I thought, “well it’s about time the list price was reduced” because I knew when it first hit the market in the middle of June it was a little high for the condition it was in.

The smell when you first walk walk in the vacant unit is compelling to say the least… kind of takes your breath away.   But as you’ll see in the video I shot, it just needs some paint, carpet & lino and other minor fixes.   You’ll see in the video that one bedroom has a sliding door to a nice little back yard patio.  The grass is dead of course, but nothing a little watering won’t cure.   Click on the picture above to see the video walk through..!

Rents for this Duplex “fixed up” should be at least $1,000 for the 2 bedroom 2 bath side and at least $950 for the 2 bedroom 1 bath side.   Click Here for the “pro-forma” cash flow analysis.

By the way, there was a duplex just a couple of doors away at 8326 Summerplace that closed escrow a week or so ago for $182,000 that started out priced at $197,500.

 

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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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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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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Looking for a Pride of Ownership Duplex that will “cash flow”…?

If you don’t want a “fixer” this might be what you are looking for.

This Duplex just recently fell out of escrow.   It’s a long story, but suffice it to say, it wasn’t the fault of the property.   In fact, the Buyer’s appraisal came in at the List Price of $214,500.

The former Buyer made some mistakes in obtaining her loan on time.   So when her time to close came and went with no loan approval, the Seller elected to withdraw from that contract and put it back on the market again.

So here’s your chance.

I’ve got a video below and if you want to see what the numbers look like, the “proforma cash flow” analysis is available if you  CLICK HERE.

 

 

If you have any questions regarding this or any other Residential Investment Property in the Sacramento Region, drop me a note or call me.

In the mean time…?

Make it a Great Day…!

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

 

 

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