Of Course Those of Us in the Business Already Know.
Make it a Great Day.
Ed Favinger – firstname.lastname@example.org – Mobile 916-203-1260
Make it a Great Day.
Ed Favinger – email@example.com – Mobile 916-203-1260
I’m going to post hopefully soon the Duplex Comparable Sales data for the area from October 1st to date. I’ve already accumulated the data, it’s just a matter of putting it into a nice format that can be read here.
The reason I bring this up is because just about every offer I’ve made on behalf of several buyers on various Duplexes in the area have been in competition with other Buyers looking for the same kind of deal. It’s amazing that there is this much of a pent up demand with the comparable sales figures lagging a bit. When I post those you will be amazed at how many are over list price when they closed escrow.
This one here is no exception. It’s a short sale and the “pro-forma” cash flow information is below. Keep in mind these are estimates only.
I’ve got a video of the exterior and surrounding area to give you an idea of what the neighborhood looks like.
This is a nice area of Duplexes that rarely come on the market. Rates are low and that’s probably the best reason to pick something like this up.
Make it a Great Day
Ed Favinger – firstname.lastname@example.org – Mobile – 916-203-1260
So here’s a monster duplex that just came on the market in Carmichael. To get to this property you have to drive by some really beautiful single family homes. When you first turn on Oakgreen Circle in Carmichael, you aren’t sure if you are looking at a neighborhood of duplexes because of the lush landscaping and mature trees and shrubs.
This property just came on the market yesterday and is listed at $235,000. With a Gross Annual Income showing of $30,600, you get a deal at roughly 7.6 GRM. The configuration is a 1,600 sq. ft. 3 bedroom 2 bath, 2 car garage and a 1,354 sq. ft. 2 bedroom 2 bath 1 car garage …
You can see from the pictures it’s got some vaulted ceilings and at this price it’s got some upside potential. It’s too bad that either the owner or the tenants leave all this much “stuff” laying around the premises and allow what could be nice landscaping to be ignored.
Cash Flow Estimates will come later.
Make it a great day.
Ed Favinger – Email: email@example.com – Mobile (916) 203-1260
This duplex is on a nice little street over in Carmichael that has an older tree lined country street feel with no sidewalks leading into this newer area that does have sidewalks, curbs and gutters. Not much traffic goes back in here.
If you are looking for a unique type property that you can hold onto and that will hold it’s value, this would be the street. Cash Flow is not that great on paper, however you will have an easy time finding great tenants that will want to live here.
Click Here for a Flyer that has the cash flow numbers. You will notice that even though this is listed at $193,050 that I calculated a cash flow based upon a price over $200,000 because this property will sell for something in the $220,000 to $230,000. There will be “multiple offers” on this one.
For some Palm Videos that I took today about 11:00 AM see the links below.
Make it a great day
You’ve heard though the Main Stream Media that we are in a recession “nationally” and if you didn’t know, the most recent report regarding unemployment in the Sacramento Region pegs us at 12.3%
Most of us in the real estate business know that there is a lot of money looking for a home…especially… in the investment real estate sector.
Would you believe that 50% of the 171 Closed Transactions in the 3rd Quarter 2009 were all Cash deals with no financing involved..? Check out the stats below here.
Cash Deals 85 49.707%
Conventional Financing – Min. 25% Down 61
FHA – Owner Occupied – Min. 3.5% Down 11
Total Closed Sales 3rd Quarter – 2009 171
Not only is Cash king here, on top of that prices are not coming down. The Average List Price to Sales Price Ratio these 171 closed escrows came in at 102.33% during this time period.
I’ve provided some of the hard data, such as the Address, List Price, Sales Price, Year Built, Days on Market, etc in the link below. I hope you find it useful and informative.
If you would like a more detailed report or have some interest in a particular property just drop a note my way by clicking here.
MAKE IT A GREAT DAY….!
If you have followed this blog for a while, you know that I specialize in Residential Rental Real Estate and that we also provide Property Management Services.
REO/Bank Owned properties generally will give you possession at close of escrow without any existing tenants. However, in many “short sale” situations, you may inherit some existing tenants.
If you have just purchased your first investment with a “tenant in place”, you may or may not be lucky. On the one hand, you won’t have the prospect of doing a “turn over” right away, which can cost a couple thousand in painting, carpet replacement and clean up. However, on the other hand, you may wind up having problems with the existing tenants if you aren’t careful.
If you and your agent are using the California Association of Realtors Form, Residential Income Purchase Agreement (RIPA – revised on 4-10-2010), there are some great “due diligence clauses that pertain to “Rental/Investment” property. Paragraphs 9. A. Rental/Service Agreements, 8. B. Income and Expense Statements and 8.C. Tenant/Estopple Certficates.
I am going to summarize them below.
Rental/Service Agreements – You won’t get these on a Bank Owned/REO in most cases because the property is vacant. If the property is occupied, this paragraph requires that the Seller is to provide copies to you of all Rental and Service agreements. These normally would not only include the Lease agreement, it would also include, the tenants’ payment history… any rebates, the date of their tenancy, copies of service agreements, such as a Landscaper’s Maintenance Agreement and copies of the water, sewer and garbage bills.
Income and Expense Statements – You won’t get these on a Bank Owned/REO and rarely on a Short Sale. They are either Bank Owned and they don’t have them anyway and on a Short Sale you won’t get much help from the Seller, in most cases, unless it’s been professionaly managed.
Tenant Estoppel Certificates – These are important…! These documents are filled out by the existing tenants and given to the Buyer. These certificates will have information, according to records of the Tenant. They will show what the rent is, what they said they paid for a deposit, if they were given any kind of “incentives” or “rebates”, who the original tenants were and who lives there now. Any conflicts with the statements and records of the owner and the tenant should be resolved before the close of escrow.
Now while I’d love to have copies of the current tenant leases and service agrements, the income and expense statements, it’s not a deal killer if you can’t get them.
Why…? Because when we obtain “Tenant Estoppel Certificates”, these will sufice for a short time as enough information to allow you to take over the property until you get the tenants to sign a new lease/rental agreement, Since we can’t get the Income and Expense statements, we’ll still get copies of all of the existing, water, sewer/storm drainage and garbage bills so we can have an idea of what our “fixed expenses” will be. We will be able to figure out what the Real Estate Taxes will be (approximately 1.25% of the sales price) and we’ll obtain a quote from your Insurance Agent to find out what your annual Hazard Insurance will be.
What we won’t know will be the variable costs associated with maintenance and repairs. To avoide unforseen issues, you should obtain a Termite Inspection, a Roof Inspection and Certification. If the property is currently occupied the Tenants will tell us what doesn’t work.
With all that information, you should wind up with a good idea of what the condition of the property is.
Finally, I will say that even with all that information, something may come up that was unforseen inspite of your due diligence. Hopefully, because you did exercise your “due diligence”, you will mitigate most problems so that they are small ones.
Make it a Great Day…!!!
PRIDE OF OWNERSHIP TYPE INVESTMENT REAL ESTATE CAN CASH FLOW:
I’ve posted some new prospective Cash Flow opportunities to the Ed’s Hot Picks page that you might want to check out.
An Interesting Nine Units
One of them is a 9 unit property that I has been on the market for a long time and recently went into foreclosure so you’d better hurry.
This property consists of two parcels. A notice of default on one of them was filed in April and the other one just a few days ago, so the clock is ticking. Call me for more information – 916-203-1260.
Financing if you need it will be an issue, especially on the 6 unit parcel.
A Duplex that could be owner occupied on one side.
The other property that was recently added is a duplex in a nice part of Citrus Heights, that is a 3 bedroom 2 bath on one side and a 2 bedroom 2 bathroom on the other. The notice of default on this one was filed in April, so this one is getting down to the wire.
As I have said in earlier posts… I don’t always post these deals here, but if you check the Ed’s Hot Picks page I do update it a lot more often.
In the mean time…?
MAKE IT A GREAT DAY….
Realty World -Your Property Source
620 East Bidwell Street
Folsom, CA 95630
CalBRE # 00812744