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Buying a Foreclosure at the Court House Steps…? Beware of the Pitfalls..!

Ouch….!!!   This man lost $137,000 and is upside down on his “investment”.

I have added  the link to the answers to a  Trulia Q&A question that was asked by an investor in El Dorado  Hills, California  that had purchased a property at a courthouse auction.

While this case is a little unusual, I think from the answers that were given by me and other professionals, you will come away with the idea to do your “due diligence” first before you invest in this area.

His dilemma is not one that I think any of us would like to be in.

Click Here for the story and see the answers that were given and let me know what you think.   You might want to check back on that link because chances are you will see new answers and advice given.

Make it a great day….!

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

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Cash is Still King for Sacramento’s Bank Owned/REO Duplexes

This map shows the incorporated and unincorpor...

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Two new listings I profiled here recently closed – All Cash – No Financing

When I profiled these Bank Owned Duplexes just about a month ago it didn’t really surprise me that both of them went to a Pending Sale status shortly after I posted the article.

One of them, 7444 Robmar Court, Citrus Heights, sold for the list price and the other one, 7720-7722 Sunset Avenue, Fair Oaks, closed escrow with a sales price of $285,000 which was four thousand dollars over list price.

7444 Robmar closed escrow on September 3rd and Sunset closed escrow just a few days ago on September 16th.

Bottom line is that if you like one of these properties and they have just come on the market, chances are you will be up against “all cash” investors.

If you are thinking of getting into this market, be prepared to do battle with other investors looking for these great deals.

Make it a great day…!!!

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

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Two REO/Bank Owned Duplexes – Easy Cash Flow..!

With Lower Mortgage Rates, it’s almost a “no brain-er”

I was out and about looking at property the other day and spotted what I think are a couple of unique duplexes.   One of them is in a little higher end area of primarily single family homes on a private drive and the other is in more of what I call a “bread and butter” neighborhood.

The one thing they have in common is that they both are situated on “corner lots“.

7720-7722 Sunset Avenue in Fair Oaks is the 1st one.   This one sports 3 bedrooms 2.5 baths on each side with 2 car garages.   Priced at $281,000 this one will pencil out nicely and doesn’t need much to get it in a “rent ready” condition.   This one just came on the market last week.

Click here for the Cash Flow Figures.     For a video walk through, click here

7444 Robmar Court in Citrus Heights is the 2nd one and is in more of a “rental” neighborhood.  While the neighborhood does have some single family homes nearby,  you do think “rental neighborhood” when you drive through the area to get to this property.

As you will see in the video it’s not in really bad condition and it wouldn’t take much to get this one to shine.  Pay attention in the video to the “mistletoe” that has taken over the large tree in the front.  I think trees are a valuable asset and if you find a tree in this condition, get rid of the mistletoe and you’ll save the tree.

Click here for the Cash Flow Figures.    For the video walk through, click here.

If you haven’t gotten the memo, Mortgage Interest rates are in the high 4% to low 5% for 1-4 Unit  Investment Properties.

With rates this low I guess the phrase “no brain-er” comes to mind.

Make it a great day…!!!

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

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Flips Are on the Rise – Business Journal: Absentee Home Buyers Up

Thought I’d share this story.

CPR: News Story | Business Journal: Absentee Home Buyers Up.

Make it a Great Day…!

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

An Approved Sale Rancho Cordova Duplex – A “Sleeper” Area

The Price is Right – Just Needs New Management & Some Repairs.

I was involved in a sale of a Duplex next door to this one.   There have been 3 recent sales in the area with new investors fixing these up.   This used to be an awful street of neglect.

That’s all changed in my opinion.   Click Here for the “proforma cash flow analysis”

By the way, we know this area because we also manage the duplex on the left side of this one.

This has been on the market for a while… just waiting for someone to jump on it.

Take a drive by there yourself and see what you think.   I think properties in the City of Rancho Cordova are a great investment.

Make it a great day…!

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


Unique Bank Owned Duplexes in Sacramento – See Why I Like Them

In Your Search for a Duplex Investment,  Not Only Should You Consider the Surrounding areas – Consider it’s current setting – I’m talking “Extended Living Areas” that Add Value.

Why do I say that…?   Well if you haven’t noticed we are in a recession with an unemployment rate in the Sacramento Region around 12-13%.   This means people are going to have less money to spend on nights out on the town, vacations and other entertainment venues that these folks might in good times frequent.

You’ve heard of “Stay-cations”… vacation at home.   And if you are going to be in the Landlord business, consider that if folks have to stay home, they’d like a nice setting to enjoy.

An advocation that gives me a lot of pleasure is “landscaping” a property.   It’s important to me and I believe this is one of the big items I think many investors choose to ignore or go on the cheap.   One comment in a basic landscaping book I got at Home Depot years and years ago spoke about the importance of landscaping.  “Landscaping when done right acts as an extension of the living area.”

Patios outside a Dining area for example is a nice place to have your BBQ grille and Patio Furniture.   A small patio outside a bedroom slider would be a nice place on a Saturday or Sunday morning to read a paper and slurp your “cup of joe” wouldn’t it….?  Or…? What about having a glass if wine with your friends over on a nice evening with the sun just about to go down on a well appointed deck or patio.

See the two examples below and let me know if you see the “potential” that a good landscape cleanup and enhancement would do for them.    I have videos of both  along with the usual “pro-formacash flow analysis.

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910 Bell Street, Sacramento – This property is on the corner of Bell Street and Villanova Circle.  It’s located near a regional park, Cal Expo, Arden Fair Mall, entertainment and restaurants.  This one has some mature landscaping in place that just needs to be properly cared for and along with the usual repairs that is required on these REO/Bank owned properties, if you took my suggestions, this would be a long term keeper.

Click Here for a Pro-forma Cash Flow Analysis

Click here for a video of the Bell Street Side Click here for the Villanova Circle Side

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3622-3264 Sutterwoods Way,  Sacramento, Ca.  I used to own a property just like this one about 8 years ago so I know the street.   This one also has a unique corner lot setting with a lot of shrubs and trees.    The interior of this one is not in bad shape.  The appliances don’t appear to be too old.
I think it just needs some Paint, Carpet for the most part. You will see some Driveway damage in the video.

Click Here for a Pro-Forma Cash Flow Analysis

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I hope you see the potential in these two potential investments.   A first time home buyer I think could make a nice home out of one side and rent the other by the way.

Make it a Great Day…!!!

Ed Favinger, Broker CRS, GRI, SFR            favinger@rwnetwork.com         916-203-1260
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1st Quarter Sales Report – Duplexes in the Sacramento Region

You Want Stats… I got Stats…

I thought I would pass on the a couple of things here for your information.   As you will see on the Table below,  it looks like out of the 113 Closed Duplex Sales in Sacramento County, just a bit under one half of them are “cash deals”.   If you go back to my post in February, you will notice back then there were no FHA/VA deals.

The report below shows there were 17 deals that were FHA/VA financed.  Those by definition, are “owner occupied” transactions.   I think those buyers were making a very smart long term move.

Here’s the table.

If you’d like the list of closed sales for the 1st quarter I have in a PDF format.   Click Here for your free copy.

I hope you found the above useful and informative.   If you have any questions regarding the Residential Investment Real Estate Market in this area, please drop me a note here:   or call me at

Make it a great day…!!!

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

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The Free List Page Has Been Added

It’s all sorted by City

Been looking for a website with a list of Residential Investment Properties such as a Duplex, Four-Plex or Multiple Residential Apartments that you can browse at your computer?

You are now in luck.  If you go to Ed’s Free Investment Property List you will be able to check out what is available.

As of today it’s not a complete page, but I’m working on it and hopefully I will have it done in the next hour or two.   You can see what is there in the meantime, so book mark this page for future reference.

Don’t forget to check out Ed’s Hot Picks page for properties that I have already reviewed and prepared a “pro-formacash flow analysis for.

Make it a Great Day…!!!

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

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Hot Bank Owned Properties – Sacramento – Cash Flow Opportunities

What About Short Sales…?  They’ re Hot too.

If you’ve been to this site before,  you already know that I am a big fan of Duplexes… especially the “REO or Bank Owned” type because they are for the most part deeply discounted from their highs from years past.

The dis-advantage to a Bank Owned or REO deal is that,  while you get the property at a dicounted price, there will be that “as is” thing they insist on and with rare exceptions they don’t deviate from it.   You get these deals with the property vacant, which means you have to go in and do the “fix up” to get them in a “rent ready” condition.  If you want to see what an vacant REO/Bank Owned property can look like, go here.

Now even “Short Sales” are becoming a great deal because the banks are now more willing to complete them in a timely manner.   

OK… Why do I say Short Sales are Hot Too…?

Well, for starters, most of the time in a Short Sale the property is still occupied by Tenants.   The trick is to get one that has “rent paying tenants”.   However, even though the case may be they are not paying rent, this could be the result of  the tenants having been notified that a foreclosure is pending and they are holding funds in case they have to move.  Or… the current owner has just abrogated the responsibilty and is not even making an attempt to collect it.

Either way in most cases you can work a deal out with the existing tenants to have them stay.   Now keep in mind when an owner is in this situation, you will probably run into an old “deferred maintenance” issue that has been neglected by the current owner which,  if resolved by you, will go a long way in keeping the tenant there and happy to stay.

The advantage then of keeping the tenant there is that you will not have to go in and spend the extra “bucks” to re-rent the unit.  

And Finally.. the best reason to go after a Short Sale now is you still get the same “discounted” or “market price and that Lenders are beginning to approve them much quicker than in the past.    How cool is that…?

If you want a list of REO/Bank Owned & Short Sales…?

You’ve come to the right place.  I’ve analyzed both types and prepared “pro-forma” Cash Flow figures for each one on this page.  I’ve got videos too on some of them.   If you book mark this page, you will get updates as I go out and view these properties and post the information.

Make it a Great Day.

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

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