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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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Looking For a Real Estate Investment That Carries Itself..? Check These Out…!

We’ve got recent price reductions too…!

 

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If you have been looking for an “investment” type of property and have followed this blog site for any length of time, you know I’m a big fan of Mulit-Unit properties.

The reason is most of the time you’ll never have a vacancy of 100%.

Is a Four Plex in your future…?

Take a peek again if you haven’t already at this Four Plex at 5544 Keoncrest Circle, Sacramento which consists of all 2 bedroom 1 bath units, central heat and air, fireplaces in 3 of the units.  Each unit gets a Garage Space and garage door opener.   There is an “on-site” laundry that is free to use for the Residents of this building.

Click Here to get all the information including a video of one of the units

How About A Duplex…?  We got several.

1.  955-957 Woodshire, Sacramento – 2 bedrooms, 1 bath, 1 car garage one side & a 2 car garage on the other – Was priced at $289,000… Now Reduced to $259,000 – Located in a Pride of Ownership area consisting of primarily single family homes.   Rents could be raised some on this one.

2.  7226-7228 Oconee Court, Citrus Heights, Ca – 2 bedrooms, 1 bath, 1 car garage each side – Priced at $259,000 – Located on Quiet Cul-De-Sac Street in a great area near Parks, Schools and Shopping.   Great tenants on this one and both want to stay.  On month to month and could have rents raised some.   One side has been totally remodeled with a new kitchen.

3.  4713-4715 Greenholme, Sacramento, Ca – 2 bedrooms, 1 bath, 1 car garage each side – Reduced price at $204,950.  Fully leased with great tenants.

4.  4717-4719 Greenholme, Sacramento, Ca –  2 bedrooms, 1 bath, 1 car garage each side – Reduced price at $204,950.  Fully leased with great tenants.

NOTE:  Someone would be smart to buy both of the Greenholme properties since they are side by side. 

5.  4548-4550 Zachary Way, Sacramento, CA – 2 bed/1 ba/1 car gar & a 2bed/2ba/2 car Garage.  Occupied by long term tenants… one over 11 years.   Priced at $219,000.   OWNER IS WILLING TO CREDIT $5,000 for new paint & carpet.   This property has had the same tenant on once side for almost 18 years and the other side for about 10 years.

AND FINALLY…

6.  Two Houses above the valley fog on One Lot in Cameron Park, located at 3825-27 Cambridge Road.  CLICK HERE for pictures and a cash flow sheet.   Priced at $515,000

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If you have thought about making an investment, now is a good time.   Interest rates are still at a low level, all of these properties are decent shape with the owners willing,  within reason,  to make repairs that are needed when discovered in the “due diligence” inspections.

You Need A Property Manager…?  We also offer the 1st 3 months of Property Management if you buy these or any other rental property through us.  Our property management services can be found here.

 

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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Sacramento Fourplex – Fixed Up – Rented Up – Check it out Below

Nothing To Do Except Collect The Rent Now..

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5544 Keoncrest Cir, 

Sacramento, Ca 95841

 

All units are 2 bedrooms 1 bath and include a 1 car garage for each unit.

This was a “bank owned fourplex” that has been refurbished and updated inside and out.

We have a great tenant profile and all the units are currently leased up.

Click Here for additional pictures and more information.

Click Here  for the “pro-forma” cash flow analysis.

Take a drive by the area 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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I Have A Couple of Sacramento Duplexes for Sale… See Below…!

They Are In Good Areas… Bring Me an Offer…!

Our Office has recently listed some Duplexes for sale in various parts of the Sacramento Region.    We do manage one of them, the others are managed by different property management companies.

This Owner is moving out of the area and wants to liquidate these properties.   They are all “occupied”.  Rents on some of them are low because they have been occupied by long term tenants.

The links below will have some pictures, some will have “cash flow” figures and short videos of the exterior.

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1.  955-957 Woodshire, Sacramento – 2 bedrooms, 1 bath, 1 car garage each side – Priced at $289,000 – Located in a Pride of Ownership area consisting of primarily single family homes.

2.  9398 Mary Ellen Wayu, Elk Grove, Ca – 2 bedrooms, 1 bath, 1 car garage each side – Priced at $269,000 – Located in a Pride of Ownership area consisting of primarily single family homes.  One unit has been totally updated, the other unit is in good condition but not updated.  Click here to get the slide show and short video of the exterior.

3.  7226-7228 Oconee Court, Citrus Heights, Ca – 2 bedrooms, 1 bath, 1 car garage each side – Priced at $259,000 – Located on Quiet Cul-De-Sac Street in a great area near Parks, Schools and Shopping.

4.  4713-4715 Greenholme, Sacramento, Ca – 2 bedrooms, 1 bath, 1 car garage each side – Priced at $209,950.  Fully leased with great tenants.

5.  4548-4550 Zachary Way, Sacramento, CA – 2 bed/1 ba/1 car gar & a 2bed/2ba/2 car Garage.  Occupied by long term tenants… one over 11 years.   Priced at $224,900

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Need financing…?  Give Dana Reed, Folsom Branch Team Leader, , of Big Valley Mortgage a call at  916-768-4298

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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Sacramento Area Duplex Market – Latest Report – Guess What…?

Yes There Is More Inventory and Fewer Sales.

I’ve noticed this recently as I drive around the region.   Below is the graph that shows the market in the last couple of months and I think you’ll agree the pendulum is moving back towards a Buyer’s market.

Don’t get me wrong.   There are properties out there that get multiple offers if they are in great condition, have the rents at market and of course “priced right”.

Anyway… check out the graphs and data below

 

Duplex Sales - July - Sept 2013

duplexes days on market

I hope you found the above useful and informative.

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’s the Fall Season – Now’s The Time to Improve The Landscaping..!

Trees In this Area Raise the Value of Your Home Or Investment – Some Helpful Links to help you pick the “right tree”…

Anyone who follows this blog site or is a current/past client of mine knows how I feel about the impact of  good landscaping on a Home or a Rental Investment Property.

Here’s a short slide show below that shows a “before” and “after” of a Duplex in Orangevale that we manage.

Today is Sept 29th and already you can feel the evening air is a little more crisp and mornings are kind of chilly.   I bet you have noticed in the last couple of days that the trees in the area are beginning to change their color.

What Kind of Tree

We are having a discussion right now in our company regarding landscaping improvements and a planting day for various properties we manage throughout the region.    Among the discussion was some suggestions of various kinds of trees.

I’m partial to deciduous trees because they are fast growing and give some great colors.

Here’s a great resource to help you find the right tree.  It’s the Sacramento Tree Foundation’s website.

Here’s a list of what they will tell you that I found informative.

  • The Scientific Name
  • Mature Height
  • Mature spread
  • Leaves
  • Fruit
  • Root system – where it has large surface roots
  • Where you can see a “specimen”
  • and… “minimum” planting distances from fences… pools… between trees etc.

I looked up Red Maple and took a drive out to Carmichael near the intersection of Oak Avenue and California Avenue to get a picture of it.  It is a big tree as you can see.  I didn’t have time to go to the other locations that show smaller specimens.

If you wanted to see what a mature tree looks like before you plant it, this is a great resource for you.

I hope this gives you some useful information.

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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More Inventory of Duplexes – Not Bank Owned – Traditional Sales

Been Looking for a Duplex…?  I’ve got a few profiled below…!!

I’ve been out and about the last few days looking at property.   I have noticed with the rise in interest rates, some buyer resistance exists at the higher prices some of the Sellers of these duplexes have thrown out there.

Below you’ll find some properties that are currently rented.   I’ve provided a proforma cash flow analysis of each one, with what I think they should sell and rent for.  In addition I’ve added a short slide show/video of the exterior of each property and immediate surroundings.

I hope you find this useful and informative.   Let me know what you think.

I’ll have more later… hopefully today.    The ones above though are pretty decent,  given the rise interest rates.   As I wrote above, I do think some of these sellers are asking a lot when you factor in the rents are low in most of them and there may not have been any updates/upgrades.   I have not seen any of the interiors so it’s difficult to tell their real condition.

I’ll be out looking at more property in the next few days so come back soon.

 

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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