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If you thinking of Buying, Selling or Investing, give me a call and let me show you how to get the most $$$ for your Home or Investment.     Call me at 916-203-1260 or by email at:   favinger@rwnetwork.com

In the mean time…?    Make it a Great Day…!

 

Are You an Apartment Investor…? You’re not alone…!

Rents are going up… Prices are going up..

This news hasn’t reached a lot of people yet, but apartments seem to be the next big thing.   The reason, as most pronosticators in real estate will tell you. is that the Millennials have not decided yet to get into the “home buying” mode.

Instead they are opting to rent.   They like areas such as Sacramento’s Midtown area which has an eclectic atmosphere that not only includes apartments but also restaurants, coffee shops, bars, night clubs and of course a close proximity to lots of jobs in downtown.   Don’t forget we have the new sports arena currently under construction there. http://livinginurbansac.blogspot.com/2012/08/finished-la-valentina-project.html

In addition since the great recession around the area I live, Folsom, Ca, they are just now starting work at catching up in the demand for new housing.   As you can surmise, affordable rental housing is a hot item pretty much across the board.

I know in our Property Management business, we rented out a single family home in Empire Ranch within a day or so of it hitting the market.   Another example to share with you is we recently represented a small investor that purchased a Duplex through us. He immediately raised the rent on one side from $800 to a $1,000 and the other from $1075 to $1175.

Below, to make my point, are some recent articles from various sources.  By the way.. click on the picture above here to catch some photos of some nice projects in Sacramento.

Region’s biggest apartment complex changes hands for reported $62M – Sacramento Business Journal

Investors Keep Piling into Aparments –National Real Estate Investor

Sacramento region leads nation in apartment occupancy increase – Sacramento Business Journal

You’ll notice in some of those articles that these investors intend to fix these up and “drive rents”.   If you’re a small investors, say Duplexes, Four-Plexes or small Apartment complexes, please take note because those dynamics work for you too.

Let me know what you think and in the mean time…?

Make it a Great Day…!

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

 

When Selling a Home or Investment Property – At Least Upgrade the “Curb Appeal”

The Drought is not an “excuse” to stop maintaining your landscaping.

If you have followed this blog for a while or if you have just found it, you’ll know from my past posts that I think the one thing many investors and even home owners over look or put in a lower priority is the landscaping… especially the front yard.

Many people will make a snap decision on the spot whether or not to buy or rent or even get out of the car when they first pull up. First impressions are important don’t you think…?

Case in point is a Duplex that just came on the market a day or so ago located at 7937-7939 Tangors Way, Citrus Heights, Ca.  I had to just laugh when I saw the price because I know the area and specialize in Duplexes.

In addition, the fact that there are no “front yard” pictures provided to the Multiple Listing Service kind of gave me a clue there’d be a “surprise” for me. I drove by to take a peek and I’ve got a video here below for you.

The agent describes this property with words such as “well maintained” and “in great shape”.

Take look at the video tell me what you think…?

 

It doesn’t take much really to make a property stand out.

What about planting some trees and shrubs…?

This investor is not the only one.   I wrote about a Duplex in Roseville where the investor did the same thing… which was nothing to the landscaping in front or the back yard, but promoted the “large back yard” as a good thing.

CLICK HERE FOR THAT STORY….

I’d appreciate your feedback… Let me know what you think…  Am I being too critical…?

In the mean time…?

Make it a Great Day…!

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

My Review of a Sacramento Bank Owned Four-Plex & a Rancho Cordova Duplex.

The Four Plex is Bank Owned/REO & the Duplex is a normal “equity” sale.

While the market is still pretty decent,  we are not getting the “multiple” offers as often as we did earlier.    I think one of the reasons is the condition of some of the new inventory coming up for sale.  They are asking top dollar but their condition is not at the quality to match their asking price.   I have two examples below.

The Four Plex located at 801 Carro, Sacramento is in pretty sad shape.    Take a peek at the video below.   I did not go into all the units and probably should have.   These four-plexes are a little different than the usual 4 plexes because most of these are configured as 2 bedroom 1 bath units.  However when I got back to the office I noticed on the MLS listing print out that there must have been some changes made because the listing shows a 3 bedroom 1 bath unit in the mix along with a 1 bedroom 1 bath unit.

I’ll have to verify this and update this blog post later.  The reason is because I have been involved in the sales of these types of four-plexes before and they are all 2 bedroom 1 bath units.

Click Here for the “proforma” cash flow analysis I prepared based upon the asking price of “sales price” + Fix Up costs I estimate at $10,000 per unit.  I think the closing price has to come down some because on any REO deal such as this one, there’s always something you miss or that comes up unexpectedly when you are doing a rehab.

https://www.youtube.com/watch?v=wsTKd0FFW2k

The Duplex is located at 2647-2649  Mcgregor Dr, Rancho Cordova.    It’s listed at $209,500 that includes a 2 bedroom 1 bath unit and a 2 bedroom 2 bath unit.   Both have 1 car garages.   Both units are rented under market in my opinion, which my cash flow analysis below reflects.

By the way….I think Rancho Cordova  is the “sleeper” investment area of the Sacramento Region.   The city has made an all out effort to clean up the Folsom Blvd corridor and it shows.    This property by the way, is within a short walk to the Light Rail station and the  Zinfandel Shopping Square which include a Grocery outlet, fast food and some shopping.  Access to Hwy 50 and the Sunrise Corridor is right there as well.

I was a little disappointed when I previewed it.   The lawn hadn’t been taken care of and when I tested the front yard sprinkler system on the vacant unit there was a broken sprinkler head gushing out water.

Anyway, Click Here for the “proforma” cash flow analysis and you can catch a quick video of one side below.

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

You Want Info – Sacramento Duplexes for Sale..? Evaluation & Ca$h Flow Estimates Below..!

I Have Three Duplexes Profiled Here – They Might Work Out For You…

Yes… They might work out, but the Sellers on two of them at least will have to come down in price in my opinion.   Below you’ll see the Cash Flow estimates and some pictures I took this last Thursday and Friday.

6608 Gold Run Ave, Sacramento, Ca 95842 – 2 bedrooms 1 bath, 1 car garage ea. side, CH&A – Near Hwy 80, Neighborhood Shopping along with a large Park just around the corner.  Listed at$226,000, they will need come down some.  The seller started out at $216,000 got a quick offer that went Pending but then fell out of escrow.  It doesn’t help the tenant on the right side parks his truck on the grass which you can see by clicking on the address above… and that same white truck with flat tires is still in the driveway.

Click Here for the Cash Flow estimates –  Below are pictures I took yesterday, June 27. 

6304 San Benita Way, Citrus Heights, Ca  –  2 bedrooms 1 bath, 1 car garage ea. side, CH&A – This one is located on a Cul-De-Sac street with other Duplexes, some of which are nicely maintained.   This one is not one of them.   They did some updates but on the cheap, in my opinion, from what I can tell.    Listed at $225,000

Click here for the Cash Flow estimates   Below are pictures I took yesterday, June 27th.

And finally the Short Sale Duplex for sale located at 3013-15 Bluestar, Rancho Cordova, Ca – 2 bedrooms 1 bath, 1 car ea side – Also located on a Cul-De-Sac.   Listed at $200,000 – looks like it could use new roof to replace the Shake Roof there now.

Click Here for the Cash Flow estimates  Below are pictures I took yesterday, June 26th

 

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

 

When You Ask Top Dollar For a Property – Do It Right – Give Some Value…!

They Paid $139,000 – Now Asking $299,000.

I want to start off by saying that I believe in the “capitalist” system.   All of us have the right to ask any price we want if we decide to sell something and I think we’d all agree on that.

adding value

However after many years in the business I’m still amazed at some investors who think they can get absolute “top dollar” for a Duplex without doing much to really improve it.

The property I’m talking about is located at 1814 Cirby Way, Rosevile, Ca 95661.     I remembered this property because I did a video of it, when it was a “bank owned” Duplex in 2011.

After almost 3 years of ownership they’ve really not added any extra value.  “Curb Appeal” looked like the last thing they thought of.   Maybe they are still working on it.

The Buyer  now has been trying to sell this one since November of 2013.  They started out at the list price of $329,900.

While this Duplex is in a decent enough neighborhood, it’s also on a fairly busy street.   To overcome that major objection and get a decent tenant in a property like this, you have to have some nice curb appeal don’t you think…?

I have two videos below.   The 1st one is the property before the current owner purchased it and includes both sides.   The 2nd video is the “left side” only.

I think this owner really missed an opportunity and took far to many short cuts.  They ignored the principle of “adding value”.  As a result,  his rents are lower than other “like properties” near by, while at the same time he’s asking top dollar with no real return for the prospective Buyer he’s trying to sell to.

This is my opinion, but if you have followed this blog, you can see why I was disappointed.

Take a peek at these and let me know what you think

VIDEO ONE

VIDEO TWO

 

 

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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Do You Allow Tenants to Park Their Vehicles on The Front Yard Landscaping…?

I Get That Icky Fingernails on a Blackboard  Feeling Whenever I See This…!

You know when I’m out and about and I spot this, it irritates me to no end.   It’s amazing to me that any Owner/Investor would put up with this.

Number one, I think it shows how disrespectful of the Owner this act is when a tenant does it.    Number two, ask yourself the question.  If you have a rental close by or god forbid, it’s right next to a property like this, would you think  “prospective” tenants would find this appealing and then decide they’d want to live next to that…?   I wouldn’t and I think the vast majority of folks agree with me.

It certainly promotes a devaluation of the neighborhood… don’t you think..?

One of the things we do as Property Managers for our clients is to drive by their properties on a fairly regular basis.   The reason you would hire a Property Manager would be to stop just this kind of thing if you don’t have the time or inclination to confront a tenant doing this.

Take a peek at the duplex here on Montrose in Folsom that I drove by last Friday.   Along with a pick up truck parked smack dab in the front yard, we’ve got trash cans sitting out in front when they should be behind the fence or in the garage until trash day.  It doesn’t help that the owner has a poorly maintained landscaped area.

I did some research on this property and the current owner bought this from the bank as an REO.   I think the owner is making a big mistake not taking more care of this property.   “Pride of Ownership” principles apply for rental properties too.   Not only is he hurting himself, by not maintaining and in fact “improving” his curb appeal, he’s keeping the potential rents and income to him down for his property.   As I pointed out earlier, it  also denigrates the neighborhood and lowers the “tenant profile”.

Here’s a picture of a property at 2728 El Parque, Rancho Cordova that represents the kind of pride of ownership from an owner that “gets it”.

2728 El Parque, Rancho Cordova

What do you think…?   Am I wrong…?  Drop me a note or post a comment 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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Don’t Overpay for a Folsom Duplex Without Checking Out Recent Sales…!

Why Would a Duplex almost identical to one we closed last year be worth $80,000 more…?

I ask the question because the property listing does show the owner did pay to install a Roof recently.   The Seller also made updates to the heating and air systems in one of the units and a recent exterior paint job for the building along with some recent water heater replacements.

The Seller is also offering a credit to the Buyer for new flooring in one of the units if you pay his price of $375,000.  However, the most recent comparable sale just around the corner closed escrow at $295,000.

By the way, the Fargo property started out even higher…

Both of these properties were built approximately the same time within 2 years of each other and both have 2 bedroom 1 bath units with single car garages.

The rents reported on the Fargo duplex are at $1,500 more annually then the one we closed escrow on at 46 Dean.   

The square footage of the units are about the same as well.    While the Seller of the Fargo duplex has recently reduced his price, don’t you think it’s still a little high..?

If you are a Seller you should look at recent sales and price them accordingly because the longer it sits on the market and gets stale, the tougher it will be to get sold.   Even if you did get an offer, if conventional financing is involved, it will be hard for the property to appraise anywhere near the current asking price.

In addition, I was disappointed at the “curb appeal” of the Fargo property because it wouldn’t have taken much to get the landscaping a little nicer.

What is my opinion of where the Fargo Duplex should sell for..?   I think somewhere in the $300,000 – $315,000 range and that would be “top dollar”.

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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Cameron Park Investment Property Coming Back on the Market…?

Two Single Family Detached Homes on One Lot..

tamis cambridge

 

We have a buyer that is having difficulty qualifying for a loan and we’ve placed this one back up on the “Active Release” status.

Once we get another offer acceptable to the Seller, the current Buyer will have 24 hours to withdraw from the contract.

The best part about this deal is that the tenants are already in place and want to stay.

This property is in a great location and unique in that it is surrounded by Single Family Homes.   While it’s located near parks, schools and shopping, it’s also a short distance to the Highway 50 onramp to the El Dorado Hills, Folsom and Rancho Cordova work centers.

Take a peek here at the Cash Flow Figures and click here for more pictures.   If you know of anyone looking for an investment like this, please send them the link to this blog post.

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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Gaslight Apartments – 15 Units – Folsom, California – Back on the Market…!

All The Inspections Are In….

 

If you have been looking for an small apartment complex in Folsom, then today’s your lucky day.    When we first put this property on the Dean side of Gaslightmarket we did not have any inspections so the buyer who wound up with the deal completed them all and then decided he didn’t want to move forward.

So… today so we are putting this back up on the market looking for a new buyer.

If you Click Here, you’ll get all the information including a short exterior video of the property.  If you would like copies of the inspections, please call me and I would be happy to email them to you.

 

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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