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Residential Investors Get Better Returns with Sacramento Duplexes.

Maybe the Sacramento Area is the “Next Big Thing” for Residential Investing.

I’ve always liked Sacramento Duplexes because I know you get a better return on your investment.   If you didn’t know the rental investment market is pretty strong right now.

I got this article from BIZNOW and thought I’d share it.   If you’re a Residential Real Estate investor with concerns about keeping your residential investment occupied with good paying tenants, when you read this article you’ll have a better idea of how long the “renting trend” might last.

CLICK HERE FOR THAT ARTICLE

As I said earlier, I like Sacramento Duplexes as an Investment because they have the amenities for the most part that Single Family Homes have but give you a better return on your investment.

We’ve recently closed several Duplex deals with no problem raising rents up to market for better returns without too much in the way of additional fix up/upgrade expense,  although there will always be some.

Click here for the Street View of a Duplex we recently closed escrow on.   Each side is a 2 bedroom 1 bath with a one car garage.   The right side rented at $900 and the left side was Vacant.   The new Owner did do some landscape work in the rear yard by adding a 12×12 paver patio to add some extra “Utility Value”.   This small enhancement creates more living area to enjoy the back yard.

The roll up garage door did not have an opener and there was no dishwasher included either.  The tenant had to bring in their own refrigerator as well and furthermore has to maintain the front and back yard landscaping as part of the deal.   This Duplex unit did have Central Heat and Air though so we were able to lease it up for $1,150.00 to a well qualified renter.

If you’re thinking of Investing in the Sacrament area please contact me today.   We’ll help find the right investment for you and we can provide 2nd to none Property Management.

In the Mean Time…

Makt it a Great Day…!

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

 

 

Quick Market Update – Sacramento Duplexes for sale

Multiple Offers Still Going On…

I had the opportunity of working with a couple of investors that made offers on a couple of Duplexes for sale in our region.   One of the Duplexes for sale was at 4932&4934 Saddlerock, Sacramento and the other Duplex for sale was located at 2641 Capitales, Rancho Cordova.

In both instances the Sellers received “multiple offers”.   The buyer on the Saddlerock Duplex actually made an offer well  over list price but didn’t get in 1st position.  However, they were later able to get into escrow with this property after the Buyer with the top offer withdrew from the deal.

Sometimes the 1st offer in doesn’t complete the deal.

The other Duplex for sale on Capitales had 5 offers and we wound up on top with that one.  Interestingly in that deal the Listing agent told me that out of the 5 offers, 3 of them were prospective “owner occupied” purchases.   I think you’ll see as prices of single family homes go up, folks will turn to this option, live in one side and rent the other.

In both cases we  were required to have a Lender Pre-approval letter and Proof of Funds.   Proof funds is important because if you are going to compete with “cash offers”, you have to show you can pay the difference if the appraisal doesn’t come in at the Sale Price of your offer.

So if you’re thinking of Selling, Buying/Investing get in while the rates are still low and don’t be disappointed if you don’t get the first deal you make an offer on.

In the mean time…?

Make it a Great Day..!

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

Sacramento Area Adding Jobs Good News for Real Estate Investors

Adding Good Jobs Help the Housing Market.

If you are an “out of area” Investor or a potential buyer looking to move into this area, you’ll want to know if there’s an economy here that’s adding jobs.

If you were to own a rental it’s nice to know that there will be jobs here so that people can afford to pay the rent you will charge them.   This is true if you own a Duplex, a Four Plex, an Apartment complex or even a Single Family rental home.  If they don’t have jobs they can’t pay the rent.

I thought I’d share this short article from the Sacramento Business Journal to illustrate the economy here.

Chinese solar company to establish McClellan plant, bring 200 jobs

This story is a prime example of what “re-use” of some former Military Bases in the Sacramento area that were closed in the 90’s, Mather AFB and McClellan AFB.  jobs

Mather is now a commercial center and is also being used as an “air freight” facility while McCellan has a mix of industrial uses.

As a Real Estate Investor it’s nice to know that your investment in this region would be a good one that will grow in value because we’ve got the jobs here as well.

If you are thinking of Investing, Buying a home here, or Selling a property here, please call me at 916-203-1260 ( I take text msg’s too) or drop an email my way at Favinger@rwnetwork.com

 

In the mean time…?

Make it a Great Day

Ed Favinger, Broker, CRS, GRI, SFR, CDPE

 

Sacramento Duplexes for Sale Prices Going Up & So Are the Rents

A Fair Oaks Duplex Fixed Up Gets Multiple Offers

While I specialize and look for Sacramento Duplexes for sale all the time, I  have taken notice  now for a while  there is a thirst in this market for Sacramento Area Duplexes in great areas like Fair Oaks that are fixed up and renovated.

Not only do you get top dollar when you sell, you can place a new tenant in the units at much higher than their past history.

Case in point is the Duplex you see below.    I got a “google street view” of the property taken last year that is embedded here so  you’ll be able to zoom in and check out the neighborhood if you want to.

Looks like the roof might have had some issues and they fenced it off for security purposes while they made their repairs.

It consists of a 3 bedroom/2 bath/2 car garage on one side and a 2 bedroom/2 bathroom/1 car garage on the other.  It Listed at $399,000.

There are only a couple of pictures of the property in the MLS which is a shame,  but you can see they did fix up a kitchen pretty nicely.

If you click here you’ll get an MLS flyer that shows some of the information about it.

This property came on the market about 3 days ago, had 5 offers and is now a Pending Sale.

If you are thinking of Buying or Selling a Sacramento Duplex, Four-Plex, a small Apartment complex or even a Single Family Rental, please call or “text” me today at 916-203-1260 or drop me an email at: favinger@rwnetwork.com

n the Mean Time…?

Make it a Great Day….!

Ed Favinger, Broker, CRS, GRI, SFR, CDPE

 

 

Sacramento Apartment Market Projections – 2017

Just passing on an article and information I just received.

If you’re thinking of getting into the Multi-Family Housing market as an Investor and you’re new at it, I’m sure you’ve thought a lot and hopefully have done some research.   You can always contact me for more information and set up a time for a free consultation.

The Sacramento Apartment Market is one of the top 20 in the nation and is still affordable especially compared to some markets in the San Francisco Bay Area.

In our market we find it’s hard to find a 2 bedroom 1 bath apartment unit with lots of amenities for under $1,000 per month.

To get an idea of what we have for rent go to HavenRents.com and you’ll get a sense of what the prices are for various types of properties we currently have available.   You can also go to the “rentals page” here on this site.

I received and thought I’d share a 2017 market projection from CBRE, a large real estate investment company that works in Retail, Office, Industrial and of course Multi-family projects through out the the country.

CLICK HERE for that article and go to Page 31 for their “Multi-Family” projections.   I think you’ll appreciate their findings and conclusions.   It looks to me like the Sacramento Region’s Multi-Family market should remain strong.   I think this remains especially true in the smaller multi-family units, such as Duplexes, Four-Plexes or small apartment complexes.   Why…?  Because they haven’t built any in the last several years.   Sacramento Duplexes/Four-plexes for sale don’t stay on the market very long.

So if you have stumbled on this blog site and are thinking of investing in the Residential Real Estate Market in the Sacramento area please contact me at anytime.    We specialize in the Sales and Management of Single Family Homes, Duplexes, Tri-plexes, Four-plexes and small to medium sized apartment complexes.

In the Mean Time…?

Make it a Great Day…!

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

 

Sacramento Area is the Best Area Residential Real Estate Investors

In An Improving Economy – Not Enough Homes – Creates Higher Prices & Rents.

If you’re a San Francisco Bay Area home owner or investor and looking for a place to move to or invest in, you can’t really beat the Sacramento Area.

tamis cambridge

Two Homes On One Lot in Cameron Park Managed by Haven Properties

Prices and rents have gone up but are still a bargain when you compare them with Santa Clara, Contra Costa, San Mateo, Alameda and San Francisco Counties.

Just take a peek at what you can buy here in Folsom and compare that where you live in the Bay Area.

If you’re an investor, you can still get a decent Duplex or Four-plex for under $400,000 and have a “cash flow” which is unheard of in the Bay Area now.    Foreign Investors are just parking their money in the Bay Area in hopes of higher appreciation down the line, but they don’t have a decent cash flow return in the mean time.

I thought I’d pass on this article from the East Bay Times.    Maybe it’s time to Move here and/or Invest here…?

And Finally…. The two things we don’t have as bad as the Bay Area….? 1. No Rent Control… 2 And Bay Area “traffic”.

In the mean time…?

Make it a Great Day…

Ed Favinger, Broker, CRS, GRI, SFR, CDPE   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

 

Is Rent Control Coming To the Sacramento Area…?

It’s Not Just Rent Control – They Add Costs Onto Owning a Rental

I have an article here that I recently received from the RHA (Regional Housing Association of Sacramento Valley) with a list of ballot measures in several San Francisco Bay Area cities regarding “rent control”.

It’s not just that they want to limit the amount of rent you can charge, they also want to make it more difficult to get rid of bad tenants by instituting “just cause eviction” laws as well.Image result for the rent is too damn high

Just Cause eviction rules eliminates the “termination of tenancy” that we can currently give a Tenant in our area without stating a reason.  Just Cause rules would require a hearing at another government run board or authority that would hear your case and probably take the side of the Tenant unless you had massive amount of documentation to support your position.

Some of these measures would limit causes of action to evict a tenant to 8 or 9 specific reasons.

For many investors, this is why they hire a professional property management to make sure they are “in compliance” because of all the rules changes and regulations that vary from locality to locality.

Take a look at this article from RHA and think it over.   Land use decisions do involve you and when you can’t build housing because of all the NIMBY’ism, this can be the result.

I think you’ll be appalled at what they are proposing.   It is scary in my opinion.

RENT CONTOL ON THE BALLOT IN FIVE BAY AREA CITIES

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

 

Is It a Good Idea to Purchase a Home Protection Plan for Sacramento Duplexes and Four-plex Investment Properties.

Buying A Sacramento Duplex or Four-Plex…?  It’s Absolutely a Good Idea to Insure At Least The Air Conditioning…But Don’t Rely on Them for Everything…

Recently our Property Management Company, Haven Properties, experienced what we would call some “bad service” from a Home Protection Plan company that has been around for a long time.

The tenant of a Duplex called a Service Request in for a stopped up and leaky toilet on Monday the 26th.  shutterstock_195491885 The owner had purchased a Home Protection Plan to help mitigate any expensive repairs that might occur during ownership.

Property Management had the account number, made the service request to the Home Protection Plan Representative,  gave the contact information to them and made arrangements to pay the “deductible”.

It all went smoothly except they didn’t get out there for over 48 hours to fix the toilet.   How would you like it if that was your problem for almost 3 days…?

As a result of this incident we’ve decided if a Home Protection Plan is giving out poor service as was this case, then you as a Landlord will have to take action in my opinion.

Remember, plumbing issues are not something you can really put off.   Now I know it might cost you more because of the “in-action” of the Home Protection Plan,  you’ll have a very happy tenant in the end.

Let me know what you think…?

Don’t Forget…We Specialize in Duplexes and Four-Plexes for Sale in the Sacramento Area.   Need Property Management..?   Check us out at HavenRents.com

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker, CRS, GRI, SFR, CDPE

916-203-12260

 

Do You Think The Curb Appeal of This Duplex is a Plus or a Minus…?

Would you put this on the market the way it looks now…?   Would a Tenant Pay More to Live There…?

I just had to pass this on to those folks that are thinking of buying a Residential Investment, such as a Duplex, a Four-Plex or an apartment complex or even a Single Family Home.

People will make an instant judgement about a Duplex for Sale just about as soon as they pull up to the curb.

This Duplex I’m profiling here today is located at 2719 & 2721 Bravado Drive, Rancho Cordova.  Despite it’s poor curb appeal, it’s on a corner lot that backs up to one of our other Investors who have been outstanding in helping create a nicer neighborhood.

In this slide show, we’ll show you the “subject property” and then you’ll see the other units our Property Management company currently maintains.

This Duplex closed escrow back in December of 2013 at a sales price of $161,000.   The new owner hadn’t done much if anything since he’s had it but,  now wants absolute top dollar.    His rents currently are at $900 and $850 per month and they should be at $1,000.

Generally in my opinion, I think investors who skimp on curb appeal and landscaping are leaving dollars on the table in returns they would otherwise have received.   Not only in a higher sales price, but higher rents during their ownership as well.

Tenants will pay more for a nice pad.    Let’s see if he gets his price because I think it’s worth no more than about $245,000.

CLICK HERE for a proforma cash flow analysis.  It’s really ugly in front but just needs some TLC…..    So, overall,  I think this could be a nice investment given that the surrounding properties have a lot more “pride of ownership” then this owner and it won’t really take that much to bring it up to par with the neighbors.

 

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