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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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A Nice Looking Duplex – Nestled Among Single Family Homes

 

I Wish There Were More Like These on the Market because they are probably the most popular.  Check out the information and the video too…!

 

While out looking at Duplexes that have just come on the market the last few days,  I ran across this one.   I have a client that has purchased some property just around the corner from this property and others in the Rosemont Area.

This Duplex is located at 4001 and 4003 Westporter, Sacramento.    It’s got a configuration of 2 bedrooms, 1 bath and 1 car on each side.   The listing agent has the rents shown as $825.00 for each side but I know these would rent for more.    I think you could get at least $895.00 for each one even though they are smaller units than some of the duplexes we are currently renting not far away from here.

The reason is the location…!

For the Pro-Forma Cash flow figures CLICK HERE.

CLICK HERE FOR MY WALK THROUGH VIDEO

Let me know what you think of this one…   You’ll see that it doesn’t need much work.

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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Being a Landlord is Rewarding… But You’d Better Beware..!!!

This Property Came Back into the News Yesterday in the Sacramento Bee and it’s not a Happy Ending.

 

 

 

This article is basically an Update on the Story I wrote last year…  A Lesson In The Costs of Not Maintaining Your Rental Property

 

The final outcome was announced in yesterday’s “fish wrap”.

Take a minute and read the link above and then read the story from the Sacramento Bee.   The Headline below will give you a nice clue as to what happened.

Tenants win settlement over conditions at Rancho Cordova apartments

What happened to these former owners is that they “ignored” complaints from some of the tenants about Vermin, Mold and some Safety Issues.

When you are a Landlord, you can’t ignore problems like this.  In an apartment complex, a disgruntled tenant with a legitimate issue that is ignored will spread the word and all of a sudden, everyone will want to get on the bandwagon thinking there is a “big payday” at the end.

In this case this it what happened and it didn’t have to be.

I don’t care what kind of property you purchase, a single family home, a Duplex or even an Apartment complex these issues will come up from time to time.   Most of the time they are minor and can be mitigated if you act early and never ignore it.

 VERMIN… VERMIN…VERMIN…

Failure to remedy an infestation of vermin, such as rats/mice/bedbugs/roaches or mitigate water damage that will lead to a mold problem will cause you to be up against a Code Enforcement officer and might even lead to a nasty lawsuit that will cause you to lose your investment.

I’m not trying to scare you about investing  in Residential Real Estate… My goal here is to educate you so you can avoid this  kind of problem.   Failure to act will bring on another kind of vermin…  The “hungry” litigation Attorney. They love to sue landlords because they know there will be a big insurance payoff to them and maybe a little bit of $$ for the victimized tenant.  Just beware ok…?

Below are some articles I’ve picked up from the internet that will give you some insight as what these critters are and what they do.    Like I said, just be aware and never ignore them.

Meet the Critters Inside Your Mattress – Al Hofer’s South Florida Pest Blog

Vermin…Who is Responsible – From the UK blog – Property Management FAQ

 Top Dog Pest Control – Info and Links to California Landord Tenant Law Information

 Mold…Mold…Mold – Don’t Be Scared – just be informed – Regarding Obtaining Insurance for your property

 

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 Bank Owned Home and A Duplex Profiled Here…

How Many Offers Will They get? And… How Many Will Be Cash ?

Who knows but it seems every home or duplex that I have taken a look at has had multiple offers.

The Sacramento Bee today comes out with another story in today’s paper about how “cash is king” in home shopping.

Anyone who has been in the Real Estate business as an Agent or Broker has known this for a while now.   If you are an Investor or Home Buyer that has been searching in this market to make a purchase in the last few months,  the SacBee story didn’t say anything new to you, did it..?

So let’s take a look at a couple of properties here that I’ve recently seen.   One is a single family home in Elk Grove that is next to a home that I listed last May at 2220 Yarnell Way.  By the way, we had 13 offers on it.  The other is a Duplex near the Carmichael Area.

The House – 2216 Yarnell Way, Elk Grove – a monster 3 bedroom 2.5 bath with a large bonus room that should be converted to a 4th bedroom if you are an investor looking to rent it out.   It’s listed at $225,000 and has 2600 sq ft of living space.   The listing agent said he’s not going to look at any offers until the 5th of September, so you have time.

Click here for the video walk through I did on Sept 1st.

The Duplex – 5208 – 5210 Shereen Court, Sacramento, Ca –  A large duplex with 3 bedrooms 2 baths & 2 car garage with a 2 bedroom 2 bath & 1 car garage that is listed at $259,000.   I personally think this is a little high but in this market who knows.   When I did the walk through I noticed a business card from another agent was left on the kitchen counter so I sent her a “text message” asking her for her opinion.   She also thought it was too high but did say her client was going to write an offer on it.

Click here for the video walk through of the Vacant Unit only.

Click here for a “pro-forma” cash flow analysis based upon the existing rents in the occupied unit & rents at $1,000 for the 2 bedroom 2 bath unit.

 Oh and by the way… These properties above just came on the market a few days ago.

 

Make it a Great Day…!

 

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

 

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Thinking of Buying a Four-Plex in this Area…? Better think twice is all I’m saying…!

Why…?  Well Read On and you’ll see why…

 

I was asked by a client to drive by and check out two  Four-Plexes he saw on MLS, one at 7816 Sayonara drive pictured here and another one at 7857 Sayonara Drive.

They are currently listed at $269,000 and$279,000 respectively and in my opinion show an income that I personally think might give a great “on paper” cash flow but that does not tell the whole story.

The City of Citrus Heights has done some great work in cleaning up the street the last few years.  Their solution was to just tear down about half of the 4-plexes on the street.  They have built a small community center and are working on creating a park there with the “new open space”.

Anyway… I was out there yesterday and took a short exterior video of these two.   I was “confronted” near the end of the video shoot.    Here’s the video  You’ll hear voice near the end asking what I’m doing.

If you want more information about this street, all you have to do is “google” Sayonara Drive, Citrus Heights and you’ll get a lot of information.   I’ll give you a link here to start with that I got from the City of Citrus Heights.

As you might imagine, I’m not a big fan of 4 plexes in this area and if you are thinking of buying one, just be prepared is all I can say.   I will say though at least the City of Citrus Heights is being “pro-active” in cleaning up what has been a troubled area for a very long time.

Make it a Great Day…!
Ed Favinger, Broker, CRS, GRI, SFR, CDPE    916-203-1260    
favinger@rwnetwork.com

 

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Well It’s About Time This Duplex Had a Price Reduction..!

The Reason Why is Because It Does Need Some Work.

 

I was out there again yesterday afternoon  after showing this to a prospective buyer earlier in the morning.  The reason is because after getting back to my office I noticed that the listing agent had reduced the price to $181,100 from the original asking price of $197,900.

When I saw that change I thought, “well it’s about time the list price was reduced” because I knew when it first hit the market in the middle of June it was a little high for the condition it was in.

The smell when you first walk walk in the vacant unit is compelling to say the least… kind of takes your breath away.   But as you’ll see in the video I shot, it just needs some paint, carpet & lino and other minor fixes.   You’ll see in the video that one bedroom has a sliding door to a nice little back yard patio.  The grass is dead of course, but nothing a little watering won’t cure.   Click on the picture above to see the video walk through..!

Rents for this Duplex “fixed up” should be at least $1,000 for the 2 bedroom 2 bath side and at least $950 for the 2 bedroom 1 bath side.   Click Here for the “pro-forma” cash flow analysis.

By the way, there was a duplex just a couple of doors away at 8326 Summerplace that closed escrow a week or so ago for $182,000 that started out priced at $197,500.

 

Make it a Great Day..!
Ed Favinger, Broker CRS, GRI, SFR, CDPE    916-203-1260     favinger@rwnetwork.com

 

 

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Cash Flow Anyone…? I Haven’t Seen One Like This in a While..!

Somebody is going to jump on this one.

 

I think this is a “wow”…!   Because it’s a very unique and small apartment complex and located in a neat area with a mix of  Single Family Homes, Duplexes & one other small apartment complex on the street.   It’s Listed in a Price Range of $590,000 to $590,888.

The Neighborhood does show some pride of ownership with most of properties in better than average condition.

I’ve taken an exterior video of the property and immediate area.   Click on the Picture here to get a short exterior view of the property.

I’ve got the cash flow figures here and they look pretty darn good.  They do have one vacancy now.     By the way…  I did call the various agencies and verify most of these expenses… so what you are seeing will be close to “actuals”.

Click Here for the Pro-forma Cash flow Analysis

We manage two duplexes on this street and they are pretty easy to rent up.

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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