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Sacramento Duplexes For Sale – Not Much Inventory – Prices Up

Yea… There’s Not Much To Choose From, But,  Rents Are Up Too….

If you are curious about the market regarding Sacramento Duplexes for Sale, I’ve got some recent stats/graphs for you.   We’re still in a Seller’s Market and I think you’ll see the graphs below make the point.  I think they will also change a bit next month.

If you have ever read any of my past articles, I’ve always said  “A nice well maintained Duplex will sell for a pretty good price now with multiple offers”, or something to that effect.   The Duplexes that don’t sell quickly generally have these characteristics.

  • Poor or “Fair” Curb Appeal and General Appearance – Lack Pride of Ownership.
  • Rents that are lower or much lower than Market Rent.
  • Price is not reflective of the above 2 conditions.

Low Rents – Updates/Upgrades:

If you are thinking of Selling your Duplex or for that matter any kind of Rental Investment Property, you might think about upgrading/updating the property a little.

Having the same great tenants over several years time does not translate into a much better positive outcome in the sale if the rents they are paying are only about 1/2 of what the same unit would rent for today.

Generally if you aren’t keeping the rents up, you aren’t maintaining the property because you don’t have the cash flow.   Tenants know when they are getting a good deal.

However, if you are a buyer and make an offer on one of these types of properties I’m describing above, you’ll have to take into account the Updates/Upgrades you might be faced with to get the “higher rents” the Seller says you can get.

We recently were in escrow on a Rancho Cordova Duplex the Seller has owned for almost 30 years.   Both units were in need of work.   One of the units had 6  people living in a 2 bedroom 1 bath unit.   Both units were paying only $800.00 per month when the “market rate” is in the $1,300 to $1,400 range.

The deal fell through because the Buyer wanted an adjustment in the price to reflect the deferred maintenance and the low rents.   The buyer would have to get possession by giving a 60 day notice to terminate tenancy before being able to start the “rehab” process.  The unit would then be vacant for another 30 days at least.   There was too much to over come… Low Rents /Poor Condition/High Price.

Let me know what you think of these stats.

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NUMBER OF UNITS FOR SALE – SOLD- PENDING

Graphics list vs sold 6-10-19________________________________

LIST PRICE TO SALES PRICE RATIO – AVERAGE DAYS ON MARKET

List Price to Sales Price Ratio

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If you are thinking of Buying a Sacramento Duplex you want to take into account not only the condition, but the existing tenants and their current rent as well.   As long as you are aware of these issues, you’ll make a better informed decision on whether to go through the deal or not.

In the mean time…

Make it a Great Day…!

Ed Favinger, Broker, CRS, GRI, SFR  – 916.203.1260 – favinger@rwnetwork.com

Related stories

Sacramento had state’s 2nd highest rent increase. But there’s good news for tenants too Sacbee.com

Thinking about moving to Sacramento…?  SFGATE.COM

 

Sacramento Duplexes for Sale – Check Them Out Today…!

These Two are “Bread & Butter” Type Sacramento Duplexes for Sale.

 

We’ve just listed two Duplexes for sale and I thought I’d post their links here.

4909-4911 Douvan Court, Carmichael, Ca – 2 bedroom 1 bath each side with Central Heat & Air.   Great Location near schools, shopping and work centers.  Priced at $349,950.   CLICK HERE FOR MORE INFORMATION

7312-7314 Arleta Court, Sacramento, Ca – 2 bedroom 1 bath each side with Central Heat and Air.  Community Park just down the street – local schools close by and easy access to Hwy 99 commute corridor.  Priced at $369,999.   CLICK HERE FOR MORE INFORMATION.

If you are looking for a Sacramento Duplex to buy then contact me today and I’ll help find the right investment for you.

You’d like to buy but you live out of the area…?   We also offer Property Management 2nd to None.

Call me today… I’ll answer all of your questions about the Sacramento Duplex market and what kind of rents you can bring in.

In the Mean Time…?

Make it a Great Day…

Ed Favinger, Broker, CRS, GRI, SFR

Related Articles:

Single Family Rents Rise – RISMEDIA.COM 4-17-19

3 Things to Consider Before Investing in a Rental Property – RealtyTimes.com 4-11-19

 

Bread and Butter Sacramento Duplex for Sale

Your Basic Sacramento Duplex for Sale.

You’ve got to check out the Duplex for Sale at 7312-7314 Arleta Court in Sacramento we just listed a couple of days ago.

It’s on a nice Leafy green Cul-de-Sac location with other like kind duplexes.

CLICK HERE for a link to get Cash Flow Figures, Rental Survey and more pictures of the property and the surrounding street.

If this Sacramento Duplex interests you, please call or send a text to me at 916.203.1260.   You can also send an email to:   favinger@rwnetwork.com

In the Mean Time…?

Make it a Great Day…!

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

 

Multi-Family Residential a Favorite for Investors

Late Cycle Real Estate Investing Strong

I thought I’d share an article from Bisnow.com.   You can subscribe I think for free and they will send you information to your inbox with Real Estate and other business news.

The reason I thought I’d share this is because many people I talk to,  including other Real Estate professionals, have the feeling the Real Estate Market is slowing down.Late cycle investing Bulls and Bears

However, the BisNow article points out the trends just before the great recession and the trends of today, especially when it comes to Multi-Family Residential,  are much different.

I share the optimism of the writer of the article because it applies to all residential income properties in this area at least, in my opinion.  Those types of properties include Single Family Homes, Duplexes, Four-Pelxes and Apartments.

They just can’t build enough units but they are trying.

Click here for the BisNow article.

Click here for a local Sacramento Business Journal Article regarding new construction of Apartments in the Region.

So if you’re on the fence about Investing in a Duplex, a Four-Plex, a Single Family Rental or an Apartment complex, please contact me today at 916.203.1260 or drop a note my way via email at: favinger@rwnetwork.com

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker

 

Sacramento Apartment Market Projections – 2017

Just passing on an article and information I just received.

If you’re thinking of getting into the Multi-Family Housing market as an Investor and you’re new at it, I’m sure you’ve thought a lot and hopefully have done some research.   You can always contact me for more information and set up a time for a free consultation.

The Sacramento Apartment Market is one of the top 20 in the nation and is still affordable especially compared to some markets in the San Francisco Bay Area.

In our market we find it’s hard to find a 2 bedroom 1 bath apartment unit with lots of amenities for under $1,000 per month.

To get an idea of what we have for rent go to HavenRents.com and you’ll get a sense of what the prices are for various types of properties we currently have available.   You can also go to the “rentals page” here on this site.

I received and thought I’d share a 2017 market projection from CBRE, a large real estate investment company that works in Retail, Office, Industrial and of course Multi-family projects through out the the country.

CLICK HERE for that article and go to Page 31 for their “Multi-Family” projections.   I think you’ll appreciate their findings and conclusions.   It looks to me like the Sacramento Region’s Multi-Family market should remain strong.   I think this remains especially true in the smaller multi-family units, such as Duplexes, Four-Plexes or small apartment complexes.   Why…?  Because they haven’t built any in the last several years.   Sacramento Duplexes/Four-plexes for sale don’t stay on the market very long.

So if you have stumbled on this blog site and are thinking of investing in the Residential Real Estate Market in the Sacramento area please contact me at anytime.    We specialize in the Sales and Management of Single Family Homes, Duplexes, Tri-plexes, Four-plexes and small to medium sized apartment complexes.

In the Mean Time…?

Make it a Great Day…!

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

 

Is Rent Control Coming To the Sacramento Area…?

It’s Not Just Rent Control – They Add Costs Onto Owning a Rental

I have an article here that I recently received from the RHA (Regional Housing Association of Sacramento Valley) with a list of ballot measures in several San Francisco Bay Area cities regarding “rent control”.

It’s not just that they want to limit the amount of rent you can charge, they also want to make it more difficult to get rid of bad tenants by instituting “just cause eviction” laws as well.Image result for the rent is too damn high

Just Cause eviction rules eliminates the “termination of tenancy” that we can currently give a Tenant in our area without stating a reason.  Just Cause rules would require a hearing at another government run board or authority that would hear your case and probably take the side of the Tenant unless you had massive amount of documentation to support your position.

Some of these measures would limit causes of action to evict a tenant to 8 or 9 specific reasons.

For many investors, this is why they hire a professional property management to make sure they are “in compliance” because of all the rules changes and regulations that vary from locality to locality.

Take a look at this article from RHA and think it over.   Land use decisions do involve you and when you can’t build housing because of all the NIMBY’ism, this can be the result.

I think you’ll be appalled at what they are proposing.   It is scary in my opinion.

RENT CONTOL ON THE BALLOT IN FIVE BAY AREA CITIES

Let me know what you think.

In the mean time…?

Make it a Great Day…!

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

 

Mortgage Rates are going Down Again…Great For Real Estate Investors…!

Great News – Lower Interest Rates + Higher Rental Rates = Good Time to Invest

I got this latest report from Housing Wire and thought I’d pass it on.   If you are thinking of Buying a Home to live in or to Invest in, now is probably a good time.

 

CLICK HERE FOR THE ARTICLE.

US-mortgage-rates-30yrFix

US-mortgage-rates-30yrFix (Photo credit: Wikipedia)

 

Call  or text me today at 916-203-1260 if you’re thinking of Selling, Investing or if you need Property Management.    We specialize in Single Family Homes and Residential Income and Investment Properties as well.

In the Mean Time…?

Make it a Great Day…!

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

 

 

Thinking of Buying a Rental Property – Good News Here About Rising Rents

It’s a “Landlord’s Market”…!

Bisnow.com has the Sacramento Area at #2 Fasting Risings Rents.

Now, if you haven’t heard this before in other media & news outlets such as the Sacramento Business Journal article they wrote a few days ago or maybe you’ve not seen this article from a few months back about rental rates in the country in general,  you might think this is something going that is new.  Well, its not new to us.

Folks, anytime you see something in the mainstream media such as the news paper or TV regarding anything to do with real estate, trust me, it’s old news.

That’s because anyone in real estate who is involved in Investment Real Estate or Property Management will tell you it’s old news and has been for a while.

Let me give you an idea of what it’s like out there now.   In Folsom, where our office is and also where I live… I tell people all the time about the rental market this way.  “If you are a Renter, you almost have to know somebody inside to find a decent rental to get into.

So bottom line is if you are thinking of buying a Duplex, Four-Plex, an Apartment complex or even a single family home or condo, you’ll be able to rent it today for top dollar.

We specialize in the Sales and Management of Residential Income Property so let us show you how to make the most $$$ out of your investment.

In the mean time…?

Make it a Great Day…!

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

 

A Roseville Duplex For Sale – A Total Remodel…!!!

And it cash flows too…!

For those of you looking for a Real Estate Investment property that doesn’t need a lot of work because of “deferred” maintenance, then you might want to consider this property.

116 Hickory Drive in Roseville has had a big time make over.    We are currently renting up the units at $1,200 per month and have one pending application now.

Click Here for a copy of the Proforma Cash Flow Analysis.   We are currently marketing it to tenants with them paying for the Water, Sewer and Garbage.   The cash flow figures however show the owner paying for this along with Property Management and Landscape Maintenance.

If you want to schedule and appointment to see this property please call me at 916-203-1260.

In the Mean Time…?

Make it a Great Day..!

 

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

 

If You Are a Landlord – Some Good News For You

Rents in this area are up

 

However, if you have been a regular visitor to this blog site, you already know this.   When ever we get a vacant rental, it’s very rare that our 3d House (XXL)Property Management Company will re-rent it at the same rate when it was given back to us at move out.

In addition, when renters elect to “re-up” a lease at the end of their term, we generally raise the rent some because the market will allow us to.

Along with the increase in the amount of rents landlords can charge, we’re also seeing some of the other costs associated with running a unit being transferred to the tenant.    Most notably some of the city and county utility charges, such as Water, Sewer and Garbage fees.

This is especially true for owners of Single Family Homes/Condos and Duplex units in this area.   It’s rare that we have much,  if any,  objection when we have included theses charges in a new tenant’s lease.   On occasion instead of raising the rent on some units at lease renewal, we’ve adjusted the new lease to include some or all of those utilities.

Here’s a HousingWire.com article with a survey of rental rate increases in the largest markets Zillow covers in the US.    While I’m writing this I’m listening to a morning radio talk show out of the Bay Area and guess what the topic is…?  Yes high rents and how people are driving long distances to get to work.

In conclusion it’s better to be on the Landlord side right now and if you have been thinking of getting your first rental, trust me you’ll have no problem finding a good tenant these days.

 

In the Mean Time…?

Make it a Great Day…!

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