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Cash Flow Potential – Bank Owned & Short Sale Duplexes – Citrus Heights

Here are a couple of Duplexes that are both unique.

One of them just came on the market about a week or so ago.   I drove by to view the area and while I was out there taking pictures of the exterior, one of the tenants came out and we had a conversation.   She likes the area, but the building has had some issues, notably the roof.  

If you look at the pictures of the property, you’d never know.   She did say that an inspector did come out there and she was told that the roof would need some major work.   The owner has been unable to make the repairs so she’s been putting up with a leaking roof.   That’s why she said she was looking for a new place.

The property is located at 7130-7132 Grady Drive, Citrus Heights, Ca 95621.    Click here for a “pro-forma” cash flow analysis.  Keep in mind that these figues do not include the cost of a new roof, but even if it cost $10,000 to replace it, in my opinion, this would still be a decent deal in today’s market.    Click here for a Map Link to show you the major intersection that is nearby.   The City of Citrus Heights city hall, police station and lots of shopping are located about a mile away if that.  

By the way, I got an email from the agent earlier today telling me that this property has 2 loans on it.   She also said she had several offers coming in,  so we’ll see how that one goes.

The other one, located at 7542-7544Saint-Philomena Way , is a Bank Owned or REO Duplex that came on the market last October.  Since then it’s been in and out of escrow a couple of times and just came back on the market a coule of days ago.   I did a profile of it back then including a Palm Video.   

Make it a great day…

Ed Favinger, Broker CRS, GRI           916-203-1260             email me at:   favinger@rwnetwork.com

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Buying Real Estate is a Patriotic Act – Especially Fixer-Uppers – See Why Below….

This is what creates jobs

Why do I say that…?   Because it’s true.

I posted a story a couple of months ago about Mr. Philips and his inability to “qualify” for a decent loan because he is a “high net worth” investor that has “passive” income.  Click here for the back ground story.

In that story I wrote about the “multiplyer effect” that each Real Estate Transaction generates.   Because Mr. Philips didn’t do these new deals, non governmental stimulous funds were stopped from “spreading the wealth”.

So with the back ground story in mind, I’ve posted a video that will show you what happens when folks spend money on Real Estate.

Take a look at the video of the “street scene” of a Duplex we sold to a Buyer that actually lives on one of this property.  He’s fixing up his place and look at what is going on around him.

Comments anyone…?

Make it a great day.

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

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Bank Owned or Short Sale Investment Property – Good Time to Buy – See Why Below

Have you ever heard of “Supply & Demand“..?

If you are on still the fence about buying an investment property in the Sacramento Region, I thought I’d update you with a forecast from Marcus and Millichap that they came out with.  

They’ve analysed several markets all over the country.   You can read the artcle yourself below.  What they don’t tell you is in the conclusion that in the future,  there will be upward pressure on rents along with prices when the economy picks up.   Why…? Nothing has been built in this area lately.  

You can read the entire article but here’s the most important part as regards new apartment construction in the Sacramento Region.   “Completions are expected total fewer than 100 apartments this year. No units were delivered in 2009.”

U.S. APARTMENT ROUNDUP: Marcus & Millichap Sees Sluggish First Half for 30 Multifamily Investment Markets

Mortgage interest rates are low and prices,  while they have stabilized in the Sacramento Region,  are still depressed because of the weak employment picture  here.   When the un-employment rate finally starts to goes down… folks that have been doubling up with relatives or roomates will want their own place.  

So if you are investor, now is the time to jump on a Bank Owned or Short Sale Duplex, Four-Plex or a Single Family Home.     

Take a look at some of the inventory out there now by clicking here.

Remember….   If you believe in America this economy is not going to last forever.

Make it a great day…!

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

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Got Rough Credit, You Want to Rent, But No One Will Rent to You…?

Check out the Notes Below From a Property Manager & Landlord.

Let’s start with some credentials

I’ve been a landlord a long time now.  This includes running properties that I have an ownership interest in and the Property Manager for other folks that either don’t have the time or inclination to deal with the day to day operations and/or interactions with Residents/Tenants.

Here are two common problems that we are encountering now.  If you fall into one of these groups, I’m going to give you ideas to help you create a better rental application.  I hope to help you here,  so you can get a nice place and not settle for a run down property with a slum lord that is willing to take you after you’ve run out of options.

Got an Eviction on your Credit Report?

When calling a potential Landlord tell them you have an eviction if it’s been within the last 3 years.   If you have re-establshed a good rental history for the last couple of years that does help…  but be prepared to explain what happened.   Our company will review each case, work with you if you have re-established a good rental history since and it’s verifiable.

Compenstating factors in your favor might be that you’ve been on the job for the last 2 or 3 years with the same company.  To qualify you might be required to pay an increase in a “security deposit“.   We typically charge a Security Deposit equal to one month’s rent.   State Law, by the way, won’t allow a security deposit of more than twice the monthly rental amount for a vacant unit and three times the rental amount for a furnished rental.

If this is a recent event, say,  within the last year and you have not re-establshed a good rental history…?  You are going to have problems.  You will need a co-signer and a have to pay a higher deposit in most cases.

You work for Cash or you are Self Employed:

I have to be honest with you here.   If you don’t have a bank account and you pay for everything in “cash”, you will have to learn to live in crummy properties until you build up a “verifiable”  long term rental history with a Landlord.

If I can’t verify your income because you don’t have a bank account showing consistant deposits  and you have no “veriable” rental history…?   These are real big red flags to me and just about any other landlord or property manager.

This is because our experience tells us,  in most cases,  with folks that fall into this category, they will have other issues and or problems as well.    (I will write another article later on being a “good neighbor”.)

If you want to be able to rent a nice place from us,  or any other Landlord,  you’ll have to become a more involved person in society by getting a bank account.    You will have to pay your bills on time and stay away from collections and be able to show us that you do make an income.

If you’d like to see our “qualifying criteria”  you can click here.

Contact me anytime if you have questions.

Make it a great day

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

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Sacramento Duplex Sales – Interesting Stats + I Have a Deal For You…!

Short Sales Slow Down Closings – Cash Is Still King

I am noticing that the number of  Duplex/Four-Plex investment properties that are now Active for sale or “Active Short Sale” is almost equal to the number of properties that show a status of Active Short Sale – Contingent (which means there’s a contract waiting for bank approval) or Pending Sale, which means it’s in escrow now.

Prices don’t appear to be dropping but the table below will show you how much the Short Sales are taking to close.  Their Average Days On Market is very high when you compare it with the other statuses.   The reason behind this is because of Buyer frustration at the long wait for the underlying banks to approve the Seller’s short sale payoff.   

Buyers will keep looking while they are waiting for a Seller’s lender to complete the process that can take over 6 months in some cases.  So many times they will walk away from a deal to find one that can give them an answer on their offer now.   This in turn requires the Seller to place his property back on the market, which increases the average days on market.

 

Check out the Duplex Profiled Below.

I have been a big fan of this street, Imran Drive in the Arden area,  for a long time.

Click Here for a Flyer & a Pro-forma Cash Flow analysis on 2300 Imran Drive, Sacramento, Ca

If you have questions on this property or any other investment in the Greater Sacramento Region, drop me a note or call at anytime.

Make it a great day…

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

Trends In This Down Economy – What Folks Now Want in a Home

Outdoor Rooms, Playgrounds and Trails are high on the list like the one shown below in the Serrano area of El Dorado Hills. 

It seems folks are looking for ways to get more utility value from their homes because these things don’t cost a lot.  There are other things the article spoke about, so for more on this, Click Here for the Article

Make it a Great Day…

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

January 2010 Duplex/Four-Plex – Closed Sales Report..!

 Cash May Be King – But You Might Be Paying More

I’ve put together the latest Closed Sales Report for the month of January 2010.  As usual you’ll see there is a lot of cash floating around in the Sacramento County Duplex/Four-Plex Market.    But… if you look at the statistics below the average List Price/Sales Price Ratio shows that on Average, Cash Buyers have been paying more.

That’s kind of amazing…   isn’t it…?

Check it out.

I’ll have the entire closed sales list posted later today hopefully.

Make it a great day..

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

What… Another Renter’s Market Story…? Old News…

Sacramento Bee’s Recent Update Here

If you own a rental or are in the Property Management business, this is really old news.   Take a look, they aren’t long reads.  I’ll have more comment later.

Home Front: Asking rents in Sacramento region retreat to 2004 levels – Sacramento Business, Housing Market News | Sacramento Bee

Home Front: California unemployment ticks up

Make it a Great Day…!

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

Technology and Today’s Property Manager

 It’s Amazing How Much We’ve Evolved isn’t it…?

Because every day it seems I’m checking out the Fry’s and Best Buy ads in the paper.   I’m amazed at the prices for digital cameras and video “camcorders”.   I can’t believe how little they cost anymore.

video camera

 

 

I purchased my first Sony Digital Camera back in 2000 for almost $500 that used floppy discs to store the images.   I could only get about 15 or so high quality pictures on a disc and sometimes the disc would be defective.   Which meant that I’d have to go back out to the site and get new pictures.

Now…?   I’m almost afraid to purchase anything because if I wait a couple of weeks I can get it much cheaper because the next “big thing” was just put on the market.

Video – What We Do With It.

  • Advertising – We’ve been using video in our Real Estate Sales business for about a year now and Digital stills in our rental ads.   That changed about a month ago and we are now using Digital Video in our Rental Ads
  • At Move in & Move Out  –   In addition to the “move in-move out” sheet that the new tenant would ordinarily fill out, we now do a video and “hi-lite” the areas that have “dings” or “stains”.   We then keep this in the tenants file and send them a copy too. 
  • Annual inspection – If you are an out of town owner, wouldn’t it be nice for your property manager to do an annual inspection so you the owner can see how your investment has been maintained ?    I did one just a few days ago over in Granite Bay.  And…as a side note,  when I’m in the area of a rental we manage I’ll drive by and just take a still with my Palm Pilot.
  • Emergencies & Repairs that come up  – Recently we made some repairs to a roof and gutter system in an apartment complex so I got a video of the work for an out of town owner.    We’ve also used videos of fallen trees and sent them over the Internet to out of town owners to keep them up to speed.

Bottom LIne…?

Keep in mind that you don’t have to have commercial radio quality “Voice Over Tonality” to do these videos.   It’s the pictures that do most of the talking.   So just narrate enough to describe what you are shooting and remember that “Youtube” is your friend.

 

I hope this helps…

Make it a Great Day…!

 

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