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A Lesson In The Costs of Not Maintaining Your Rental Property

Don’t Let This Happen to You…!!! You and Your Property Could Be on the Evening News and the Front Page of the Local “Fishwrap”

I’ve been in the Property Management business for a while now.  You know,  it never ceases to amaze me how some owners of Residential Income Property fail to properly maintain their investments.

Over the years local governments have been taking on more and more responsibility of regulating Apartments and other Residential Rental properties, because of consumer complaints

If you are a “seasoned” investor or someone that is thinking about getting into the business, don’t do what these owners are alleged to have done.

  • Don’t cover up a potential “mold” issue
  • Don’t ignore leaking roofs or other “water” intrusions
  • Don’t ignore vermin such as cockroaches, mice/rats and now “bedbugs” that have made a comeback

The Owners of this apartment complex in Rancho Cordova may have thought that because some of these tenants are “low income” they could ignore or postpone these maintenance issues.    They have,  as we say “received a rude awakening”.

The Owners have come under fire from a group of tenants that are suing them for $10,000,000.   To make matters worse, the lawyer they hired is an attorney that is well known in the State of California for bringing these kinds of lawsuits against landlords.   It was bad enough that the City of Rancho Cordova got involved, but they now face this big storm of a lawsuit.

So if you don’t want to be the lead story on the local Fox 40 News Station,( Click here for that video) or on the front page of the Sacramento Bee (Click here for that story) then I hope you will take to heart what I’m saying here.

While the bottom line may hopefully result in the Insurance Company settling this for a lot less than $10 Million,  do you want to go through the hassle and have your name smeared in the news just to save a couple of bucks on something you should have known better..? Because if you weren’t aware of it before, there are lawyers out there just itching to take a case like this against you,  “the landlord”.

Are you catching my drift here…?

Now….In the Mean Time…?

Make it a Great Day…

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Fair Oaks Fixer Duplex – Country in the City Location…!

Live Near Million $$$ Homes – Payments Cheaper Than Rent

I was out and about looking at property and have seen this one a couple of times on the MLS.   Click Here for the basic information if you’d like to see it.

This property is nestled in a pretty nice area with Oak Trees everywhere.   If you looked at the map on the link above maybe you noticed how close to the American River Parkway this property is near.  You owe it to yourself to drive by this property and the neighborhood.

This Duplex would be a great “owner occupied” candidate if you wanted a Single Family neighborhood feel.

I GOT VIDEO…!   I GOT VIDEO…!

Click On Here and join me on my walk around the property.

Click on this link to see the immediate neighborhood around this property

Cash Flow…?   You Want Cash Flow…? Or would you like to live in one unit and rent the other?   This is one property that could go either way.   You have to buy it for the right price though.  Although it’s listed at $319,900, it’s not going to sell for that in my opinion.   I think it should sell for something near or at $250,000.   If you look at the comparable sales data, there hasn’t been one sell for much over that,  if any.

Click Here for the comparable sales to prove my point.

Click the link below this paragraph for my projections – which includes costs to fix up calculated in.   I’ve got figures if you are a “Non-Owner Occupied Cash Flow Investor”  or you’re maybe a 1st time buyer and want to live in one side and “rent the other”.

Go Here To Get the Projections

If you’ve seen the projections and are curious about what you can get for rent in this neighborhood, go to this website that will give you the data.   It only asks you for the address and bedrooms nothing more, but it does show the location of the comparable rentals in nearby neighborhoods.

Let me know what you think.

In The Mean Time…?

MAKE IT A GREAT DAY…!!!

Ed Favinger, Broker, CRS, GRI, SFR         favinger@rwnetwork.com       916-203-126-

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The Most Overlooked Potential Landscape Amenity….Period…!

Versatile…Lots of Utility…Adds Value… What am I talking about…?

Its the “Court Yard Entry”…!

One of the things I’ve learned since I’ve been in the Real Estate business is the more amenities a home has, the more utility and therefore the higher value.

Landscaping was described to me in a “Landscape Book” I bought.   “Landscaping extends the living area of your home.”

In other words, you could have a 3 bedroom 2 bath home with about 1200 sq. ft. that might seem kind of small.   However,  if you had a nicely landscaped setting of perhaps a 10′ x 10′ patio as part of your front “court yard” entry along with a patio of the same or larger size in the back yard, you’ve essentially increased the living space of this home haven’t you…?

With a Courtyard Entry, you can have another nice setting to hang out besides the backyard.   I know that most folks have the family gatherings and BBQ’s in the back yard.   If you had that extra area in front,  you can take advantage of the various orientations of your home.

For example, if your home faces the west you can sit in the front court yard looking out over the neighborhood at sunset.   Sunsets in Folsom go great with a glass of wine don’t they..?

You know I was driving around town here a couple of days ago and shot some pictures of homes in various neighborhoods that have patios and courtyards in the front.  I have a link here to a page that has a slide show of some homes with “Court Yard” entry’s.    Some are just simple front porches and some are a lot more.

Click Here and let me know what you think…

If you have a minute, check out a couple of the links for some  Courtyard entry ideas.

http://www.the-landscape-design-site.com/gardenstyles/entryways.html

http://www.roomzaar.com/rate-my-space/Gardens/Courtyard-Entry/detail.esi?oid=506284

http://www.ehow.com/list_7636633_ideas-courtyard-design.html

In the Mean Time…?

Make it a Great Day…!

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

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The Bank Owned Duplex Report – New Inventory Reviewed Here…!

Some Interesting New Listings That Have “Piqued” My Attention… might pique yours too

I’ve been out and about in the last few days looking at new inventory and reviewing some that have quickly sold and then have fallen out of escrow.    The list below are just a few that I’ve seen lately I wanted to pass on.  They are in various areas… all of which I think would be decent investments,  if purchased at the right price of course.

By clicking on the address of these properties you will open up a “pro-forma” cash flow analysis in PDF format.   I have some videos as well

Let’s start with a Short Sale first.

2325 Irma Way, Sacramento, Ca 95825 – Listed at $160,000 –  Nice area of duplexes – According to the listing agent they will consider a new roof credit at full price.   I have a flyer here with some pictures of the interior because I couldn’t get in to see the interiors.  It was a nice quiet morning that I was over there and I think you’ll be impressed with the neighborhood.   Here’s a video of the exterior.  I was there at about 11 or so Saturday, October 1st.

Below are some Bank Owned/REO types of deals. These are a bit rough.  I call them “beaters” – but they are more commonly known as “fixer uppers” – .

7576-78 Cook Avenue, Citrus Heights, Ca – Listed at $127,900 – This one needs a bit of work.   The Cash Flow figures are based upon the price as if it were fixed up.  I’m guessing it needs something around $20,000 to really do it right.  But after you are done, you’ll have a real nice place and no problem leasing this up.   Click Here for the Video Walk Through.

7214-16 Grady Drive, Citrus Heights, Ca – Listed at $136,900 – As in the above situation, the cash flow figures are based upon the price as if it were fixed up.   I have told clients over the last couple of years that the average you’ll spend on one of these deals will be between $7,500 to $10,000 per side to get these in a really nice “rent ready’ condition.   Click Here for the Video Walk Through

If these properties interest you, drop me a note or call me at any time.

In the mean time…?

Make it a great day…!

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

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New on the Market… Bank Owned & Short Sale Duplexes for Sale

Take a peek at some potential Cash Flow Investment Properties that I looked at over the last couple of days.

I  have videos along with the potential cash flow figures for your review.   The two that are Bank Owned Duplexes are both in need of work but when you add in the amount it’s going to cost to fix these up, I think it will be worth it.

The reason why I say this is because the rental market is pretty good for properties that have good curb appeal, in good neighborhoods and are updated/upgraded a bit.

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3960 La Honda Way, Carmichael was just listed a couple of days ago. Click here for my “pro-forma” cash flow analysis and evaluation if you are an Investor.   This one is located on a Cul-De-Sac street consisting of mostly single family homes and is not all that far from Sunrise Blvd and the American River Parkway.   If you want a quick street view video I took click here for that.

I’ve done the estimated cash flow figures based upon a lower price because I think the Listing Broker has this priced a little high in my opinion for it to be a good cash flow deal for an investor.  However….  it is in a pretty nice area.

This property would be a great candidate for someone looking to buy their first home and an investment at the same time because they could live in one side and rent the other.  Click Here to see how little you would pay if you lived in one side and rented the other.

Go to RENTOMETER.COM to verify the estimated rents that could be obtained on this property or another property.

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FIXERS… FIXERS… FIXERS….

4207 Casa Blanca Lane, Carmichael is a Bank Owned/REO that is in need of some repairs.  I’ll let the video speak for itself, so Click Here for that.   Click here for the potential cash flow numbers based upon their asking price + the costs of fix up and improvment.  It’s listed at $153,000 and just came on the market on April 6th.

6808 Trovita Way, Citrus Heights is another Bank Owned/REO that is listed at $179,000 which had a quick offer that went into escrow,  but quickly fell out again and is back on the market.  Like the property at Casa Blanca, this one needs some work as you’ll see by clicking here for the video. Here’s the estimated Cash flow figures that I’ve prepared. Please keep in mind when you look at those figures that I’m adding about $30,000 in additional costs on top of the list price to give you a better idea of what it’s real cash flow figures would be.

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Come back here from time to time to get updates if you are looking for an investment like this or you can sign up for the RSS feeds.

Make it a great day….

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

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The Term “As Is”… The Most Misused Phrase in Real Estate

This term just bugs me… especially when used by Sellers and their agents.

I bring this up because a buyer asked a question on Trulia Q & A about “as is” and the fact that the property may not be worth what they were asking.

See what the responses were from me and other Brokers/Agents in the area to this Buyer by clicking here I think you will find what was said interesting and maybe you’ll remember it when you hear this often mis-used and mis-understood phrase.

In the mean time…?

Make it a Great Day…!!! According to the KCRA Channel 3 weather people, we’ve got some extended periods of sunshine coming our way next week.

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

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Check Out Barbara Bender’s Post Regards FHA 203K

You Can Fix it Up Using the FHA 203k Plan.

Check out this article that Barbara put together.

http://barbbenderrealestate.com/2011/03/04/what-is-a-fha-403k/

When you get to her site, be sure and check out the videos of several nice homes in our area.

Click here to see her video channel

In the mean time..

Make it a great day..

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

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I See Deals… Deals… Deals… – Bank Owned & Short Sale Duplexes

I’m just not getting why these Duplexes haven’t sold. Take a look again.  Their Asking Price/Condition Ratio must be off otherwise, these would be reported as Pending Sales..!

Below you’ll find a list of Duplexes that I have previewed in the past.  They are either  REO/Bank Owned or in a Pre-Foreclosure“/Short Sale status.   I’ve  included the link to their descriptions/cash flow figures/videos and I give you my “suggested” offer price, an opinion of the property and what I think your outcome would be.

Fix Up… Fix Up… Everyone of these duplexes will need some work.  Let’s be realistic, if the payments weren’t made and they lost it in foreclosure or it’s a Short Sale now, maintenance has not been a high priority.  If you want a rule of thumb, I think you should estimate $5,000 – $7,000 as a minimum PER UNIT fix up to get your investment into a “rent ready’ condition.   The upside after this expense is that you will have an investment in a good area that’s in great condition bringing top dollar in rents.

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1.  6128-6130 Oak Green Circle, Carmichael, Ca 95608 – Now Listed at $199,900 and has been in and out of escrow.  When you see the video, you’ll understand it does look daunting.   However… take a look at the decking on this hillside property.  It’s unique and when cleaned up will be a compelling upgrade because it’s not in bad condition.  I think the suggested price of $175,000 is fair given the dated condition.

Click Here for the ‘featured video” on my YouTube channel.

Click Here for the Pro Forma Cash Flow analysis

2.  9265-67 Corinthian Circle, Sacramento, Ca – Listed now at $190,000.  I only have an exterior view of a video, but you’ll get a good idea of the area.  Click here for it.

Click Here for the Pro Forma Cash Flow Analysis – I’d just make an offer on this one and see what happens. I suggested $175,000, but take a shot and offer a little bit lower.

I love this area… Near Hwy 50,  Light Rail and the American River Parkway recreation area.

3.  9649 – 51 Goethe Road, Sacramento, Ca 95827 – Short Sale – Listed at $154,800 – Offer $150,000 I haven’t seen the inside of this place but it’s the same floor plan scheme as the Duplex below.  I have the “proposed cash flow” at a much higher price but the rents are pretty close to what you can get if you have a quality unit.

Click Here for a video of the exterior – it’s better than street view… and shows the neighborhood a bit.

4.  9643 Goethe Road, Sacramento, Ca 95827 –  Listed now at $189,000.  I’m surprised this one hasn’t sold.   The current owner has put a lot of money into this one.  New energy saving windows.. Roof doesn’t look old and the interior on the right side is just about “rent ready”

Click here for the video walk through of the right side.

Click Here for a Pro Forma Cash Flow Analysis – I have the suggested offer price at $185,000… but this one has been on the market now a little longer than I thought I would.    I’m inclined to think you could get it for a lot less which means the numbers I’m showing on the pro-forma here would look a lot better at a lower price.

I bet you could get this for about $170,000… don’t know for sure…  but it’s still showing available.   And…  out of all of the properties I am profiling here, this one doesn’t need much work.  One side is still occupied.

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If you are looking for an investment and these don’t work for you, then drop me a note and I’ll do what I can to help you find something that works for you.

In the mean time…?

MAKE IT A GREAT DAY…!!

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

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Bank Owned & Short Sales – Deals Are Here…!!!

I’m bumping into people as I tour these places now….!

I was out and about today looking at a couple of Duplexes in the area today… and when you’re job is to look at property it sure is nice to do it in some really nice weather.

When you consider it’s February 5th, you probably have cold temperatures and inclement weather in mind.   Not today…!

The properties I have profiled below are each unique in their own way.

9649 – 51 Goethe Road, Sacramento, Ca 95827 – Short Sale – Listed at $154,800

Click Here for a video of the exterior – it’s better than street view… and shows the neighborhood a bit.

6915-6917 Burnham Drive, Citrus Heights, Ca 95821 – Short Sale – Listed at $175,000 – Wow is the 1st thing that came to mind when I saw this duplex.    It’s in a great part of Citrus Heights and surrounded by other “pride of ownership” Duplexes and close to the Fountain Square Shopping area.

Click here for the Cash Flow Figures         For a Video of the interiors, click here.

4911 Indian Oaks Court, Sacramento, Ca 95841 – Bank Owned/REO – Listed at $140,000 – This one has been on and off the market for a few months now and I think it’s been passed up because of the price.   It was a “pending sale” at one time but fell out of escrow.

Click here for the Cash Flow Figures     Click here for a video of the interiors of both units

In the Mean Time…?

Make it a Great Day…!


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

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A Rare Bank Owned Duplex in Fair Oaks

There was a crowd when I went through this one.

I think that’s because it’s rare these days to find a Duplex in a nice area.  Fair Oaks is one the of most desirable areas in the Sacramento Region.    I have a link for the map below.  When you look at it, you’ll see how close this property is to the Highway 50 corridor, the American River Parkway,  Nimbus Dam State Historical Park,  Nimbus Fish Hatchery, schools and local shopping.

Clicking here will take you to the map… hopefully it will be the aerial view so you can “zoom in” and  see for yourself that most of the homes surrounding this area are single family.   Within a real short distance,  just south of the property along Winding Way,  you’ll see some custom homes .

The Duplex is located at 8856 North Winding Way, Fair Oaks, Ca.  While it  does need some work to get it rent ready, it’s not bad.    Click here for a copy of the cash flow analysis.

VIDEO… VIDEO… VIDEO…

I have a video of each side of this property and you will see other people walking through it besides me.    You’ll be able to get an idea of condition.  I think a focus should be put on the landscaping of this property because that’s been neglected and could be a big selling point.

Click here to take a look and then let me know what you think.

In the mean time…?

Make it a Great Day..!!!



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

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