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Landscaping and Views Affect Values of Duplexes Too…!

People Will Pay More Rent & That Affects Your Value.

If you’re thinking of buying a Sacramento Duplex, I’ve always told investors to not overlook landscaping and “curb appeal” as an important part of your investment.  In addition back yard landscaping with patios, shade trees and privacy enhance your property and make it stand out when you have a rental competing with others and when you decide to sell.

We have such great weather in which a nice back yard adds an extension of the living area because your tenants will hang out there.

In other words a nicely landscaped property front and back will bring you more income and increase the value of your investment.   This is true for Single Family Homes, Duplexes and even apartment complexes.

Take a peek at this graphic from the California Association of Realtors.

Home-Value-hi-res

 

 

 

In the Mean Time…?

Make it a Great Day…!

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

 

 

Sacramento Area Adding Jobs Good News for Real Estate Investors

Adding Good Jobs Help the Housing Market.

If you are an “out of area” Investor or a potential buyer looking to move into this area, you’ll want to know if there’s an economy here that’s adding jobs.

If you were to own a rental it’s nice to know that there will be jobs here so that people can afford to pay the rent you will charge them.   This is true if you own a Duplex, a Four Plex, an Apartment complex or even a Single Family rental home.  If they don’t have jobs they can’t pay the rent.

I thought I’d share this short article from the Sacramento Business Journal to illustrate the economy here.

Chinese solar company to establish McClellan plant, bring 200 jobs

This story is a prime example of what “re-use” of some former Military Bases in the Sacramento area that were closed in the 90’s, Mather AFB and McClellan AFB.  jobs

Mather is now a commercial center and is also being used as an “air freight” facility while McCellan has a mix of industrial uses.

As a Real Estate Investor it’s nice to know that your investment in this region would be a good one that will grow in value because we’ve got the jobs here as well.

If you are thinking of Investing, Buying a home here, or Selling a property here, please call me at 916-203-1260 ( I take text msg’s too) or drop an email my way at Favinger@rwnetwork.com

 

In the mean time…?

Make it a Great Day

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

 

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

 

Are You an Apartment Investor…? You’re not alone…!

Rents are going up… Prices are going up..

This news hasn’t reached a lot of people yet, but apartments seem to be the next big thing.   The reason, as most pronosticators in real estate will tell you. is that the Millennials have not decided yet to get into the “home buying” mode.

Instead they are opting to rent.   They like areas such as Sacramento’s Midtown area which has an eclectic atmosphere that not only includes apartments but also restaurants, coffee shops, bars, night clubs and of course a close proximity to lots of jobs in downtown.   Don’t forget we have the new sports arena currently under construction there. http://livinginurbansac.blogspot.com/2012/08/finished-la-valentina-project.html

In addition since the great recession around the area I live, Folsom, Ca, they are just now starting work at catching up in the demand for new housing.   As you can surmise, affordable rental housing is a hot item pretty much across the board.

I know in our Property Management business, we rented out a single family home in Empire Ranch within a day or so of it hitting the market.   Another example to share with you is we recently represented a small investor that purchased a Duplex through us. He immediately raised the rent on one side from $800 to a $1,000 and the other from $1075 to $1175.

Below, to make my point, are some recent articles from various sources.  By the way.. click on the picture above here to catch some photos of some nice projects in Sacramento.

Region’s biggest apartment complex changes hands for reported $62M – Sacramento Business Journal

Investors Keep Piling into Aparments –National Real Estate Investor

Sacramento region leads nation in apartment occupancy increase – Sacramento Business Journal

You’ll notice in some of those articles that these investors intend to fix these up and “drive rents”.   If you’re a small investors, say Duplexes, Four-Plexes or small Apartment complexes, please take note because those dynamics work for you too.

Let me know what you think and in the mean time…?

Make it a Great Day…!

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

 

Cameron Park Investment Property Coming Back on the Market…?

Two Single Family Detached Homes on One Lot..

tamis cambridge

 

We have a buyer that is having difficulty qualifying for a loan and we’ve placed this one back up on the “Active Release” status.

Once we get another offer acceptable to the Seller, the current Buyer will have 24 hours to withdraw from the contract.

The best part about this deal is that the tenants are already in place and want to stay.

This property is in a great location and unique in that it is surrounded by Single Family Homes.   While it’s located near parks, schools and shopping, it’s also a short distance to the Highway 50 onramp to the El Dorado Hills, Folsom and Rancho Cordova work centers.

Take a peek here at the Cash Flow Figures and click here for more pictures.   If you know of anyone looking for an investment like this, please send them the link to this blog post.

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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Gaslight Apartments – 15 Units – Folsom, California – Back on the Market…!

All The Inspections Are In….

 

If you have been looking for an small apartment complex in Folsom, then today’s your lucky day.    When we first put this property on the Dean side of Gaslightmarket we did not have any inspections so the buyer who wound up with the deal completed them all and then decided he didn’t want to move forward.

So… today so we are putting this back up on the market looking for a new buyer.

If you Click Here, you’ll get all the information including a short exterior video of the property.  If you would like copies of the inspections, please call me and I would be happy to email them to you.

 

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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Rent Control – Back On The Radar Screen… Watch Out…!

I’m Just Passing this On….

If you don’t live in California and are reading this from out of state this is a hot button issue in areas like the San Francisco Bay Area and in some parts of Southern California.3d House (XXL)

If you want to see a list of those cities in this state that have rent control laws CLICK HERE.

Now if you are an Investor or even a current Home Owner thinking of renting your place out,  this issue should be a concern because it will affect you.

We just completed a “walk through” inspection of the Gaslight Apartments yesterday. Can you guess what the Bay Area investor asked me…?  “Are there rent control laws here in Folsom”.

He was relieved when I said no.   It was then he commented on how horrible it is in San Francisco and San Jose.

Take a look at this article written by Dan Walters of the Sacramento Bee in today’s paper and get ready to watch some shenanigans on this issue.

Dan Walters: Rent control returns to Capitol as burning issue

Let me know what you think and 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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Looking for a Nice Four-Plex in a Good Area…?

It’s Too Bad This One is So “Overpriced”…!

As someone who specializes in the sales and management of residential “investment” real estate I make it a point to go out regularly and preview a lot of property to keep up with the market.

A Four-Plex at 3632 Hallelujah Court, Carmichael came back up on the market just a few days ago for a whopping asking price of $688,000.   That price is lower than the original list price of $725,000.   The scheduled gross annual income they are showing is $51,384 which gives this property a GRM (Gross Rate Multiplyer) of 13.38.  With a GRM that high it’s not going to be possible to get a cash flow without a monster downpayment if you need some financing to complete this deal.

Why they are listing this property for so much is beyond me especially when there’s an exact copy of this unit at 5720 Engle Road that closed escrow last October for $495,000.

Click Here For More Information, incuding a “pro-forma” cash flow analysis on the Engle Four-Plex

The Seller of 3632 Hallelujah Court owns the property “free and clear” by the way.  They didn’t raise the price just to cover an existing mortgage.

If you want to compare them, below is a video of the exterior of the property and the one at Engle.   What do you think…? is the Hallelujah property worth almost $200,000 more…?

My conclusion…? Based upon their “scheduled” income and the GRM established by the sale of the Engle Four-Plex, I think the best the Hallelujah owners can expect as a reasonable offer would be nothing higher than $550,000.

 

Make a comment here and 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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A Sacramento Duplex Flip… Making a Profit With Minimal Work…!!

A Quick Turnaround  & They Really Didn’t Do Much…!

The Duplex at 9234-9236  Corinthian Cir, Sacramento was listed in March of last year as a Short Sale that was finally approved and closed escrow just a couple of weeks ago on the 8th.

During that long period, the property temporarily came back on the market last November and I was able to get in and look at one side but not the other because it was occupied by an “uncooperative” tenant.    When it came back on the market it was “Subject to a Release of Contract” from the current Buyer which is usually a formality but must be obtained before they can really accept another deal.

I guess the original buyer was able to hang in there by resolving what ever issue caused the property to come back on the market.  After about 9 months of  a long short sale process, they finally close the deal at $190,000.   A Buyer I represented made an offer I think for about  $220,000 when it popped back up temporarily.

If you are a flipper you have probably heard something like this before, but for you folks just starting out…?   “You Make The Money On The Buy, Not The Sell”.

In other words you have to “buy it right”.

Today that Corinthian Duplex is a “Pending Sale” effective  January 23rd after just 9 days on the market.

Folks, all they did to this property was clean out what ever trash was left over from the previous tenant.   I don’t believe they did anything more than that.

The 1st video below is from last November when I previewed it and sent this to an out of the area Buyer.   The 2nd video was done about a week ago of the other side that I was not able to get into last year because of the tenant.

LAST NOVEMBER

 

JUST A FEW DAYS AGO

 

Let me know what you think…  If it was group I was involved with, we would have fixed this up and help elevate the neighborhood values more.    I will keep you posted as to how much they got for it when it is reported as a Closed Escrow and I’ll follow up to see what the eventual buyer of this Duplex does with it.

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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The Gaslight Apartments, Folsom, Ca 15 Unit Complex For Sale…!

Posted on the Market on January 15th….

So Far…?  6 Offers…!!

For those of you that don’t know me, I work primarily with Residential Investment Property and Investors.   We were fortunate to get the opportunity to do the Property Management  for the Gaslight Apartments in the summer of 2012.   The Apartments consist of,  (9) 2 bedroom 1 bath and (6) 1 bedroom 1 bath units.

The property is well located in Folsom, near City Hall, the new Library, City Park and Zoo.   It’s a corner lot location with a single family home on one side and Theodore Judah Elementary on the other.

Since the time we took over, we’ve increased the owner’s Monthly income  over $1,000 by very modest increases in the rents of these long time tenants, some of whom had not seen a rent increase in 18 years.

While Gaslight doesn’t have all the latest amenities, it does have Covered Parking and a Community Pool.

The Owner’s have decided to move on after owning this for approximately 20 years or so.

There’s a lot of “upside” on this one for the right owner…!

Click Here for a Proforma Cash flow analysis based upon Current Rents

Click Here for a Proforma Cash flow analysis based upon another modest increase in Rents

Click Here for a Rent Roll that shows the current rent, laundry income & potential rent.

As of January 23, 2013 this property is still available, so if you are interested let me know.

 

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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