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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

 

 

Looking For A Small Apartment Investment…? These Might Work For You…

Here’s My Profile of Two Small Apartment Buildings.

Lets start with a property that was on the market a few months back… didn’t sell,  is now back on the market for sale.

7761 Lialana Way, Citrus Heights, Ca  

An 8 unit complex consisting of all 2 bedroom 1 bath units.

They include  Central Heat and Air, small patios or balconies.   The listing agent says in the listing offering a New Roof was installed in 2007.

List Price:  $535,000

 

Click here for the estimated cash flow analysis

Click on the picture above for a short Video of the exterior of this property.

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The other one is located at 5432 Olympic Way, Sacramento, Ca 95842

This one is unique because it sits at the end of a cul-de-sac and consists of (6) 2 bedroom 1.5 bath Town House style apartments in a street comprised mostly of duplexes and another nice 8 units across the street.

There’s a large park that can be accessed by the tenants who live in this building.

 

List Price is $495,000

Click here for the estimated cash flow analysis.

Click on the picture above for a short Video of the exterior of this property 

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Both of these properties need some work.   I’m not talking major structural stuff.   No we’re talking about the curb appeal and deferred maintenance that exists on both.   These are the kinds of properties if fixed up, will generate a better class of tenant and enhance the neighborhood instead of being somewhat of an eyesore.

By the way… All of the numbers you see in those “pro-forma” cash flow analysis’ are “estimates”.

If anyone that checks in on this site and is interested in these or any other properties, please send me a note or call me.

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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A HomeSteps Bank Owned Duplex in the Rosemont Area – Just On the Market.

Priced Well Below Some Recent Sales Just Around The Corner

While lately there hasn’t been much in the way of Duplex inventory come on the market, when they do, I get out there as soon as possible to see what kind of condition it’s in.

click on the picture to see the video

This one located at 9647-9649 Arlisson Drive, Sacramento, 95827 sits among other Duplex properties and has a great location near some shopping and Hwy 50 access.   It has a 3bed/2ba/2car and a 2bed/2ba/1car configuration.

This one is perfect for an “owner occupied” situation where the owner lives in one side and rents the other.  I think if you were a young person starting out,  it would be real smart to rent out the 3 bedroom side and live in the 2 bedroom side of this Duplex.   However the figures I have below fit the scenario that the 2 bedroom side would be rented and the 3 bedroom side would be occupied by the owner.

Click Here to see how cheap you could live in this Duplex for such a small down payment using an FHA loan

If you are an Investor, you’ll have to wait about 15 days til approximately January 17th before you’ll be able to make a run at it,  because they are offering this property to “owner occupied” folks first.   After that… then the investors get a shot if it’s not sold by then to a Buyer that wants to live there.

Click Here to see the “pro-forma” cash flow analysis if you were to purchase this as an Investment Rental.

By the way… Click on the picture to get a Walk Through Video I did today around 11:30 or so today

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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It Looks Like Multi-Family Properties Are Back…. If You Own An Apartment Complex…?

 

It Might Be Time to Sell.

The Tower Bridge, built in 1935, a popular lan...

 

I’ve been doing a little reading about the market and ran across this article that I think you might want to take a look at.   The source is from an outfit called Bisnow.

While the story centers on the Denver Area, they also cite examples in Los Angeles and other areas as well.   Their observations are symptomatic of what is occuring in the rest of the country when it comes to Multi-family units.

CLICK HERE for the link to their take Apartment Market.

 

In the Mean Time..?

Make it a Great Day…!

Ed Favinger, Broker CRS, GRI,SFR, CDPE

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Update on Some Recent Duplexes, Four-Plexes & Homes That Have Been Profiled Here….

I’m Still Amazed At the Amount of Investor Interest There is for Duplexes.

 

Here’s a list of properties that I have profiled in the past.  Some in the last few weeks and others earlier in the year.  I wanted to make this update because I’ve been busy working with some folks that have failed to get an offer they have submitted approved.   That’s because of the competition for quality investments.   It’s a frustrating experience for Buyers.

You know,  while you might hear stories out there from the State and National Network News regarding the lousy economy, areas like the San Francisco Bay Area and the Sacramento Area along with the Coastal Areas of Southern California are doing a “robust” business when it comes to real estate.

“Multiple Offers” are the normal course off events when a new listing comes on the market.  I’ve written about it,  I think,  for well over a year now.  Others in my business have also expressed the same experiences.   There are areas of exception of course,  but I’m referring to, I guess, for lack of a better term, “the preferred” areas… the areas that I have been to the most and written about here.

I’ve also included some properties I may not have written about before as well.   The purpose behind this is to show you how much work many of them may or may not have needed to get into a “rent ready” condition.

So if you are out looking now for an investment property whether it’s a Duplex or a Four-Plex you’ll hopefully get an idea of what other investors have done and have been up against like you.

The Following Are Closed Transactions:

2358-60 Imran Court, 2bd/2ba/1car & a 2bd/1ba/1car – Listed at $180,000 – Was a Short Sale – closed escrow 11/20/2012 Sold for $180,000Click Here for the video   which was uploaded 1-8-2012.  The wait to close this short sale was worth it.  You can’t find a duplex like this for the price they closed it at.

6604 Summer Rain Way, Citrus Heights, 2 bed/1 ba each side – A “flip” that I thought was listed too high back in August at $214,888 – It finally closed just  a couple of days ago, Dec. 20th,  at $201,800.    Rents were only at $750 on one side – we manage a duplex just like this one just two doors away from here and get $950.    Here’s the video of the vacant side

Here’s some that just came on the market and are now “Pending Sales”

6535-37 Hazel, Orangevale, Ca, 3 bed/1ba each side – Was Listed at $179,900 but then lowered to $159,900, which made it a much better deal.  You’ll see why it didn’t sell for the higher price by going to the Video Here.

4341  Alsace Ct,  Fair Oaks, CA  95628   – Was Listed at $425,000 – Duplex with a 3 bedroom on one side located in an area of mostly single family homes.   This is an interesting property that would be perfect to live in one side and rent the other.  Let me know what you think of it after you see The Video Here

3107 – 3109 Laurelhurst, Rancho Cordova, 3 bedrooms/2 bath ea side – Bank Owned – Was Listed at $155,400.   An Investor I’m working with offered $171,000…. AND DID NOT GET IT..!  Check Out the Video

3283 Cambridge Road, Cameron Park, – Single Family Home that had been priced much higher at $309,900 but then lowered to $269,900.  I had a buyer make an offer but it was also not accepted because others had out bid us.  Click here for the Video and more.

I will have more examples coming later….  

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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A Bank Owned Home in Cameron Park – Been Sitting There A While Too…!!

That’s because they had it priced to high – they’ve just lowered the price to $269,900 and now it’s getting action.

I was out there today looking at this home for a client of mine and thought I’d share this video with you.   This one is located at 3283 Cambridge Road, in Cameron Park.   It’s just a few doors away from the Cameron Park recreational area and lake.   You could walk there to see the 4th of July fireworks show they put on every year.

If you are commuter to Folsom or the work centers along Highway 50…?   This would be a great spot to land after coming home.

At around 2,200 sq.ft., it’s got 4 bedrooms 2.5 baths a monster lot with plenty of room for your boat or RV.

I’ll let the video do the talking… 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

 

 

Ok… I’ve Been Asked to Review Some 4-Plexes again

I think these are so out of style.

I have some folks looking at investing in the area and interested in 4-plexes because the cost per unit is lower and there’s the potential for a higher cash on cash return.

While I might agree with that on paper, reality is that the type of 4 plexes they’ve built in this region are some of the most basic of rental units.   I guess the term “bread and butter” units would be what you’d hear most often when discussing a property like this.   As I said, they are basic apartment units with not much in the way of amenities…. “bread and butter”.   No yard, no central heat and air, no fireplaces, some don’t even have dishwashers and no covered parking or garage.

This property is located at 4569 Ashcroft Avenue, Sacramento – the Foothill Farms area.  All of the units are 2 bedrooms, 1 bath.   They have wall A/C’s and gas wall heaters.   There is a laundry room for this building.

Rents should be at $700.00 per unit for an annual income of $33,600 which gives you a gross rent multiplier of about 6.84 and about an 8-9% capitalization rate if you only have about 40% of gross rents as your expenses.

There is an HOA that takes care of the grounds and just recently resurfaced the common area driveways.

One of the things I do like about this property is that you have to drive through a street of single family homes to get to it and it’s at the very end of a dead end street.

I’ll let the video below do the rest of the talking

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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Have We Reached the Bottom and Starting the Crawl Back Up…?

This Article From Today’s Sacramento Bee – Just More Evidence It Has…

Sacramento area home sellers again walking away with cash

By Hudson Sangree and Phillip Reese

hsangree@sacbee.com

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I Have a Couple of Nice Duplexes for Sale…Not a Short Sale or an REO

In a Pride of Ownership Area too…!

6819-21 Trovita Way,    and    6924-26 Trovita Way Both properties are configured with 3 Bedrooms 2 bath, 2 car garage and a 2 bedroom 2 bath, 1 car garage.

Listed at $269,900 each – An Exterior Video here of 6819-21 along with some pictures of the 2 bedroom side at 6821 Trovita.

For a “Pro-Forma” Cash Flow Analysis Click Here 

 MORE VIDEO BELOW…..

Click Here for a video of the interior of the 2 bedroom side of 6924-6926 Trovita Way.

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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Trying to find a Duplex for Sale…? You aren’t the only one…


It’s the Rush to Cash Flow….

 

 

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Sacramento Real Estate,  especially in the Duplex sales market, has seen a lot of activity and of course “multiple offers”.   And it always seems there’s more than one or two buyers interested in each one that comes up.

Lets talk about the latest one I’ve profiled.

3107-3109 Laurelhurst Drive, Rancho Cordova, Ca – 3 bedroom 2 baths, 1 car garage on each side.   Central Heat and Air of course and wood burning fireplaces.

Click here for a copy of a “pro-forma” cash flow analysis.

Click here for comparable sales information of Duplexes close by

 

By the way….  While I was there… a couple from Vacaville dropped by because their agent gave them the address check out.   They saw the door opened and decided to come in.   This one just came on the market yesterday.

So I know there’s at least two buyers looking at this one.

 

 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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