Posts

Why You Should Be Investing in Sacramento Single Family Houses, Duplexes, Four-Plexes & Apartments…?

It’s a Landlord’s Market Right Now – And It’s only February – Now is the best time to buy .

Have you thought about Investing in the Sacramento Area’s Single Family Home Rental market, or maybe a Duplex, perhaps a Four Plex or even a Small Apartment Complex…?   If you have, then let me show you how smart you would be if you were to buy in the Sacramento market today.

Usually this  time of year when  a tenant moves out and we have to get it re-rented it’s kind of slow and takes a little longer.   Not this year though.

Our Property Management Company, Haven Properties has leased up in the month of January approximately 10 units.

That inventory included Single Family Home rentals in Folsom, Citrus Heights, a couple of 4 plex apartments in Rancho Cordova and several Duplex  rentals in Citrus Heights, Sacramento and Fair Oaks.

20170116_145857

1089 Kantne Way, Folsom – Recently Leased up for $2,300 + Tenant Pays Folsom Utilities

Want more examples…?

Earlier today we had a gentlemen walk into our office with paper work to support his application that he had completed “on-line” at HavenRents.com.

We’ve had people call us regarding properties we’ve leased up over a month ago that are still on-line in various website portals that we syndicate to.

Another lady called me about 10 minutes ago as I write this looking for a house while she’s been living in a hotel for 3 months.    I told her what I’ve told a lot of people trying to find a decent rental…“you have to almost know someone inside to find a decent place to rent.”

Bottom line, if you own a rental property now and you haven’t raised the rents in a while because you are worried about losing a tenant and not being able to re-rent again quickly…?

Forget about it because, mostly likely,  the current tenant will stay unless they can’t afford it.   The reason…? Once they start looking around, they will see they have a really good deal even if they have to pay a little more.

So… if you’re thinking of Investing in a Duplex, a Four-Plex, a Single Family Home rental or even a small apartment complex call me today and let me help you get the right Real Estate Investment for you.

Interest rates are low if you need financing.  If you have a lot of $$$ in a low performing 401K, you might want to consider Rental Real Estate to see if it would perform better.

Please call or email me and let me show you how investing in the Residential Rental Market might be the best thing you ever did.

 

In the Mean Time…?

Make it a Great Day…!

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

Residential Rental Market Still Hot Doesn’t Matter Even if it’s in Winter Around Christmas Time

High Demand for Nice Places With Multiple Applications is Still the Norm…!

I was amazed at a recent showing of a 2 bedroom 1 bath apartment in a Four-Plex located at 2627 El Parque, Rancho Cordova.

Our Property Management unit schedules showings and if tenant prospects are there or  not, we hang out for about 20 – 30 minutes before we leave.   Our sole advertising is via the web through our various syndicators that our website providers have hooked us up with.

Here’s a short video of that unit.

When I got there a couple of days ago for the scheduled time there were people waiting to get in. This is not unusual and as of today we’re processing two applications.

We also showed a Duplex located at 9669 Lake Natoma, Orangevale that we had not even finished doing the turn over fix up and yet we got 5 applications when showing yesterday in the middle of a rain storm…!

Here’s a short video of that unit.

 

And interestingly this morning I got an email alert from the Sacramento Business Journal with an article written by Ben van der Meer.   Click Here for his short article. Rents may slow down some but no one really knows for sure.

All we know is that if we have a nice rental to present that’s well maintained, you’ll get top dollar and have a short turn over even in Winter. It’s like I have said many times before when talking about the “rental market” here in the Sacramento region“If you’re a renter you almost have to know somebody to get in a nice place”.

So if you’re thinking of jumping into the Residential Rental Market in the Sacramento area, rest assured you’ll be able to a good return on your investment here.

We specialize in Single Family Homes, Duplexes, Four Pelxes and Small Apartment Complexes in Sacramento, El Dorado and Placer counties so all me at 916-203-1260 and let us help you find the right investment.

In the mean time..?

Make it a Great Day..!

Ed Favinger, Broker, 916-203-1260    favinger@rwnetwork.com

 

Rents Are Up in The Sacramento Area – Old News To Us in Real Estate Sales & Management.

When The News Hits the Sacramento Bee – You Know it’s “Old News” When It Comes to Real Estate..!

If you’ve followed my blog site for any length of time I’ve pointed this out several times.   The reason you ask…?  They stopped building Apartments and just about anything else here because of the recession.  They are only now beginning to ramp up, but mostly single family homes.

And since they are not building more apartments for middle class folks just starting out, rents have gone up.    What apartments they are building or planning on building are “subsidized” housing or the more “high end” apartment complexes with lots of amenities according to a recent article in the Sacramento Business Journal.

I’ve said to many people seeking to find a home or an apartment to rent in Folsom, Orangevale, Roseville or any other area in the Sacramento Region that,  “you probably need to know somebody inside to get a decent rental anymore”.    I wrote about it here.

Many of the investors I have placed into Duplexes, Four-plexes and Small Apartment complexes know they can get “higher rents”, so most of them have improved their properties to take advantage of the upswing in rents that can be derived.   That also was written about in today’s Sacramento Bee article.

So CLICK HERE for that latest story from The Bee.   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

 

Rents Are Up… Big Time… We Lead the Nation with the Fastest Growth Rate

Not So Good if you’re a Renter, Great if you’re an Investor

If you would take a minute and do a quick Google Search for key words, Sacramento Area Residential Rental Rates, you’ll get a nice long list of articles about the increases in Rental Rates in our Region.

What caused me to write this quick post is I’m adding one more article that you should read that makes my point about Supply and Demand.

Our team specializes in the sale and management of Duplexes, Four-Plexes, Small Apartment complexes along with Single Family rentals  all over the Sacramento Region.  Besides Sacramento and unincorporated areas of Sacramento County, such as Carmichael and Fair Oaks, we manage property in Folsom, Cameron Park, El Dorado Hills, Roseville, Lincoln, Rancho Cordova (the best kept secreat area in my opinion) and West Sacramento.   Go to HavenRents.com and you’ll see what we currently have available for rent.

It doesn’t really matter where you go in this area, rents are up…”big time”.   We’ve had as many as 5 or 6 applications to rent on some of our inventory.

CLICK HERE and check out this article which will reinforce my argument, which is….   “They haven’t built enough housing, especially the kinds of Duplexes, Four-Plexes and Small Apartment Complexes like they did in the past.

If you’re an Investor looking for a rental property, please call me.   I will say you can still find a decent deal out there, but, you will probably pay Top Dollar.   However, guess what…?  You will have the confidence you can raise the rent if you need to.

In the mean time…?

Make it a Great Day…

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

 

Be a Real Estate Investor, Not a Slum Lord…!

If You Are an Investor and Own Rentals, Don’t Ignore Stuff.   These people did and now they’re on the Front Page above the fold in the Sacramento Bee.

In fact you’ll be surprised how much attention you’ll get.

I thought I’d share my thoughts on this issue.   When you buy any kind of Residential Rental property, don’t ignore repairs and always keep up and maintain your property.

If you don’t maintain your property and are like the folks that are the subject of these videos and the news stories, you’ll get lots of the same negative publicity and worse big time law suits.

Reminds me of a story from a few years ago.   An Apartment Complex in Rancho Cordovo had some of the same issues as here.   Guess what…?  They lost their investment… lawsuits and foreclosure besides being on TV and in the News.  CLICK HERE  for that story I wrote about a while back.

The Solution – Professional Management

As a Property Manager and Investor you’ll be glad you hired us or someone as good as us to make sure your properties are well maintained and in “compliance” with the various codes.

If you ignore issues on your property… which is what Slum Lords are accused of,  together with the tight supply of rentals and rising prices out there…?   Trust me you’ll be part of the problem that will invite more and more government oversight.  Not just on you, the Slum Lord, but on the rest of us that invest in Residential Real Estate but maintain our properties.   Is that what we want as an industry, more government involvement…?

 

Here’s the original article from Sunday’s Sacbee.   Check out the videos below.

 

You also get on Local TV

 

My advice is to keep some reserve so you can not only maintain it, but improve upon it as well.    Make your investment an asset to the community by putting something back in.

If you need Property Management help, then call us today.

In the Mean Time

Make it a Great Day

Ed Favinger, Broker CRS, GRI, SFR, CDPE

 

Sacramento Duplexes for Sale – Some Recent Sales Statistics – Prices are Up…

I’m seeing a little bit of greed set in with these stats… More below

 

One of the things I’ve noticed in a rising market and a market where buyers are king,  is the consistent failure of a lot of these Investors going out of the business because they hate maintenance issues and dealing with the tenants.   It doesn’t matter if the market is tight like it is now with low inventory or flooded with Sellers trying to get out.stats

I’m going to profile a local investor in the next few days and show you not only how much he’s improved his potential cash flow because of the care and maintenance of his properties, he’s been a factor in improving the surrounding neighborhoods as well.

You’ll come away with the realization that maintaining a quality rental will get you the best tenants paying the absolute highest in market rents no matter if you’re in a rising or stagnant market.

The Stats…    However, I know the purpose of this post was to show you some statistics for 3 zip codes we’ve had a lot of experience not only in the sales side,  but also in managing the rentals there as well.

These “stats” are Duplexes only for those zip codes, 95670, 95826, 95827.    While I’ve been involved in the greater Sacramento Region in sales of income properties, I kind of like this area because it’s along the Highway 50 corridor.

_________________________________________

Following Data is from November 1,  2015 to Date, April 20, 2016
For Zip Codes – 95826, 95827 & 95670
Closed Sales Data – 9 Sales Closed Sales Data – 12 Sales
in Zip Codes 95826 & 95827 in Zip Code 95670
Average Price  $302,201 Average Price  $260,092
Highest  $350,000 Highest  $286,000
Lowest  $259,008 Lowest  $198,000
Median  $293,000 Median  $270,000
 Active On the Market Now – 4 Pending Sales – 5
In all 3 zips -95826, 95827 & 95670 95826, 95827 & 95670
Avg List Price  $305,000 Avg. List  Price  $308,450
Highest  $329,900 Highest  $350,000
Lowest  $274,990 Lowest  $269,900
Median  $305,000 Median  $303,000

BOTTOM LINE…   As you can see there’s not much available Inventory…

So if you are thinking of Selling a Duplex in one of these or any other zip codes/areas of the Sacramento Region, call me.

If  you are not happy with your cash flow give us a call because we are the “turn around specialist” for small rental properties in the area.

 

In the Mean Time…?

Make it a Great Day…!

ED FAVINGER,  916-203-1260 favinger@rwnetwork.com

 

If You Want Top Dollar for Your Rental Investment Property

Don’t Make the Mistakes This Duplex Owner Did.

I’m in the middle of an escrow for the sale of a Duplex located at 2614-2616 Bravado, Rancho Cordova.   I posted an article about it a couple of weeks ago and pitched it to a local investor along with other people in my data base.

The current owner paid about $146,500 in 2009 and really hasn’t done much to maintain it in the interim with the major exception of an Heating and Air unit about a year or so ago.

While this property started out at an asking price of $295,000 back in December the condition of this Duplex wouldn’t warrant an offer any where near that.   I know the area very well, we manage several Duplexes in this neighborhood including one directly across the street.   So I kept an eye on it and gradually the asking price came down to something decent at $275,000.    We made an offer and started the process out at $270,000.

I have a theory that has pretty much held up over the years.   If you ignore the curb appeal and don’t show pride of ownership, trust me the Tenants will pick up on that vibe and probably not take care of it either because if you don’t care about it…? why should they…?

When you maintain your property, inside and out you get the best possible tenants that will not only pay the rent on time but will take care of the property because they know you care about it.   If they don’t,  because you care, they know you will give them the appropriate “fix it” notice called a “3 day notice for covenants“.   This owner did a poor job of managing this and it cost her.

In the initial walk through,  we find out the tenants have dogs that are not permitted in their leases.   Of course the back yards were a mess with lots of “dog droppings” that had not been picked up.

Not only that, the interiors were in poor shape with one kitchen having drawers that were falling apart.

After the Buyer had this Duplex inspected by North American Home Services for the Home & Pest Inspections along with a roof report from Eagle Ridge Construction, the only way he was going to move forward was to get a big drop in the price to make up for the deferred maintenance which included the need for a new roof.

The price we finally settled on is $245,000 “as is”.   The existing tenants are; one on a month to month Section 8 which requires a 90 days notice to vacate if he wants her out and the other one we have to wait until this coming September to get possession because she’s on a lease.   In the mean time, the rents are frozen in place for a period of time.

Here are pictures I got of the property – one that was taken by Google in Street View March 2015.  Click on the picture and you’ll see how it looks from the street today just a year later.screen shot of 2614 bravado March 2015 street view

I hope the conclusion that you come away with by reading this is when you don’t maintain and manage your rental property in a “professional manner” you will get lousy tenants, you will not get the highest possible rents and when you go to sell, you’ll have to lower your expectations “big time”.

The Buyer/Investor on this deal made a comment to me after he looked up the address where the people that own this property lived.  He noticed it was in an upscale area.   His comment was that it was amazing to him how poorly this Duplex looked but he bet where they lived looked a lot better.

Let me know what you think.

By the way… If you currently own rental properties and need management help, check out our Property Management Service that is “2nd to none” by Clicking Here

If you are thinking of Selling or you are interested in buying a Duplex, Fourplex or an Apartment complex in the area, please call/text or email me at anytime.

In the Mean Time…?

Make it a Great Day..!

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

 

The “Sleeper Investment” Area if You Are in the Market is Rancho Cordova…!

Did You Hear They Hate “chain link” fences…?

It’s an amazing thing to watch over the transition of the City of Rancho Cordova from what many people thought was a lost cause until the residents there incorporated in 2003.

Official seal of City of Rancho Cordova

Official seal of City of Rancho Cordova (Photo credit: Wikipedia)

One of the major reasons for the successful incorporation was the fact there were many “absentee” landlords who did not take pride of ownership of their rentals, did not screen their tenants very well and allowed their properties to deteriorate because they didn’t maintain them.

They’ve been using the power of “code enforcement” to get landlords in shape and while I’m not a big government kind of guy, in the cases I have observed, this city has an effective way of cleaning up their housing stock.

Which brings me to the “chain link” head line.

Check out this story from the Sacramento Bee – Rancho Cordova cleans up neighborhoods one chain-link fence at a time

And…  KCRA 3 must have read the SacBee so they had a story on the news as well.   Rancho Cordova pays homeowners to remove chain link fences

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

 

 

 

 

A Duplex That Has Some Potential Cash Flow

We Manage Several in the Area… this could be a “sleeper”.

This duplex located at 2614-2616 Bravado in Ranch Cordova has been on the market for about 40 days or so.   They started out much too high and I think at the recently adjusted price of $285,000 they are still a bit high.

Below you’ll find a link to a “proforma” cash flow analysis of this property based upon a lower price that I think is more appropriate.   We manage several duplexes within a very short distance away… one right across the street.

CLICK HERE FOR THE CASH FLOW FIGURES

If you’re thinking of Investing in a Duplex, a Four-Plex or even an Apartment complex, contact me and I’ll get you the best deal possible.   Since we also have a Property Management unit, we are probably in a better position to give you an accurate assessment of what you could rent properties for in this area.   If you buy through us, we’ll give you the 1st 3 months of Property Management free.

In the mean time…?

Make it a Great Day…!

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

 

Sacramento Area Apartment Sales Amazing Prices – Amazing Rents..!

Cost per unit is sky high

I got this article off of the Sacrament Business Journal this morning and had to pass it on.

Click Here for that article.

The reason I’ve been keen on passing on articles like this is because I’m in the process of marketing the Twin Pines Apartments in Rancho Cordova.   Click here for the information I posted a couple months ago about it.

One of the factors some investors look at is “cost per unit”.   The list price on this complex is $100,000 per unit because it’s probably a “class C” or maybe “C+”.   The Costs Per Unit of the properties mentioned in the article above are about $189,000 and $193,000.

For-Rent-300x199The reporter for the article was quoting Brokers saying those complexes were “Class A” type of product.   They have all the latest amenities I presume and built fairly recently.   However, they don’t pencil out in the traditional sense.

What they are banking on is the fact that rents are projected to be going up “big time”.   That’s because there’s not been any major construction of apartments and entry level homes in this area for a long time and demand for rentals has increased.   By the way… this phenomenon is happening all over the country if you were to do a google search for rental rates.

Our property management company Haven Properties has no problem renting up units as they come up and you’d be surprised at the amount of rent you can get if you have a nice place with amenities.

So… if you’re thinking of investing in the Sacramento Residential Investment Market, call me.   We specialize in Duplexes, Four-Plexes, small to medium apartment complexes and of course Single Family homes.

Now… in the mean time…?

Make it a Great Day…!

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