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Sacramento – Residential Investment Real Estate – Good For the Small Investor

The Key of course is buying a property in a “growth area”.

I left the San Francisco Bay Area back in 1989 which was about the top of the market back then before there was an “adjustment” in Real Estate prices a few years later.   Others would call that part of the 90”s a “Downturn”.

The Sacramento Region since that time has shifted some what from being a Government and Housing driven market to something more “diverse” with some decent paying private sector jobs.

If you’re an investor in Residential Real Estate, be it a Single Family home, a Duplex/Four-Plex or even an Apartment complex, you have to have jobs and job growth if you want Real Estate rental prices to increase and of course by extension, potential “resale” values to grow.

Because we had another “downturn” caused by the Bank meltdown of a few years ago, construction of new projects pretty much came to a screeching halt.   Only recently have we seen builders begin the process of constructing new home, but not much in the way of “rental type” properties such as apartments.

Rents in this area have gone up dramatically and in Folsom where our office is, our Property Management company has no shortage of rental applications if the property is in good condition and located in a desirable area.   If you want to rent a nice pad in Folsom or Roseville for example, you almost have to “know somebody” to get one.  I’ve written about this many times, so click here for an article about rents in the area.

The “driver” of this phenomenon is,  as I mentioned above, our increasingly diverse economy here.

Click here for short article that makes my point.   This is old news of course to those of us that live here.  The article gives you a quick view of some of the “hi-tech” companies  located here, expanding here or moving here.   These are companies that most of you have heard of too.

So….. If you are thinking of making an investment into this area, then please contact me and I’ll give you the “Chamber of Commerce” tour of the area including work centers, recreation areas and neighborhoods.     After you’ve seen the growth in Sacramento, Roseville, Folsom, El Dorado Hills, Elk Grove and Rocklin, you’ll see why many of us have decided to not only invest here… we live here.

In the Mean Time…?

Make it a Great Day…!

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

 

Are We in a Real Estate Bubble…?

Update on the 10 Hotest Real Estate Markets – Analyzed Here.

I have had more than one person ask me if we were in another Real Estate Bubble.   I know that anechdotally, prices here in the Sacramento/Folsom area where I practice real estate and property management, have gone up.

We see it all the time in higher re-sale prices and big time increases in what you can charge for rents in just about every category, from apartments, duplexes and single family homes.

In my opinion this is going to be the trend for a while here in this area,  because builders have not kept up with demand and are only now starting to ramp up with some new construction.

So…. I got this article that I thought I would share with you from HousingWire.com.

Is there a housing bubble brewing on the West Coast?

HottestMarkets

 

Let me know what you think.   Now in my opinion if you are a Real Estate Investor in the Residential rental market, I think we have a few years of growth left.

Call me today at 916-203-1260 if you are thinking of getting into the Residential Investment Market in the Sacramento, Roseville, Folsom areas.

Don’t forget, we also do Property Management and if you purchase your investment property through us, we’ll give you the 1st 3 months of Property Management service free.

In the mean time…?

Make it a Great Day…!

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

 

 

Sacramento & Folsom Real Estate are Hot..!!!

But so are a lot of other places in California…!

Maybe it’s just got to be the great weather right…?

Take a look at this…CaliforniaHomeSales

 

 

So if you’re thinking of buying a Single Family Home or any other kind of Residential Investment Real Estate like a Duplex, a Four-Plex or a small apartment complex, give is a call today.

And don’t forget, we also do Property Management as well.

In the mean time…?

Make it a Great Day…!

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

 

Do You Think This Duplex is Something You’d like to Buy.

I Think The Owner Missed an Opportunity

Here’s a picture I took of a duplex located at 9664 Lake Natoma Drive, Orangevale, Ca.    They are asking $299,900 with rents at $950 & $1025.

9664 Lake Natoma, Orangevale, CaEach unit is a 2 bedroom 1 bath with single car garages.

Since I own a property across and down the street a bit when it came on the market I thought I’d swing by and see what it looked like.

My original thought about this blog post would be to point out the poor curb appeal and how it might affect the sale of this property and therefore the rest of the immediate area of Duplexes.

The listing agent was marketing as a property needing a little “TLC”…

My initial reaction was that this property was over priced based upon my visual from the street and from some of the interior pictures.   However this duplex is in a great area.   If you look at the aerial by clicking here you’ll see how close it is to the City of Folsom,  Lake Natoma recreation area and the trail system, lots of open space, nearby restaurants & local shopping along with easy access to the Highway 50 corridor.

With all that I felt was negative about this property, yesterday it was reported on the MLS as a Pending Sale after only 15 days on the market.   The Seller’s agent would not disclose the contract price to me or even if it was close to the list price or at a discount.   He says “we’ll have to wait” until it closes.

The point of this article…?    Click Here for the street view taken of this property back in 2012.  Don’t you think like me, that in the 3 years since that “street view” picture was taken,  the Seller could have at least planted a couple of trees and kept vehicles out of the landscape strip to the left of the driveway.

Yes parking is a problem in our area, but as an investor, why not help improve the property & the neighborhood.  The owner could have added another few feet of driveway with still an area for a planter along that strip.

9669 Lake Natoma Drive

With some “minimal planning & little more investment”,  you could easily make this a much more attractive place to live, get higher rents and thereby helping to keep the values up in what could be a nice area.

Click here for a slide show of what a duplex could look like front and back.

I’d like your feedback.    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

 

 

Curb Appeal of Investment Properties & Why You Should Maintain it.

A strong landscape maintenance regimen should be part of your plan.

I’m always amazed how little value some owners/investors assign to a well maintained landscaped front yard, even though it’s the first thing prospective tenants and Buyers see when they pull up for a look.

I have some pictures here to show what I mean.   We’re in the process of marketing the Twin Pines Apartments at 2755 El Caprice, Rancho Cordova.  el caprice #1

The owners of this complex have spent the last couple of years improving this property which is right across the street from the new Folsom Lake College annex building.

A few days ago I drove by a duplex next door to us located at 2743 El Caprice and saw a beat up looking truck on the grass.  This is what it looked like when I took the picture of it below.

Do you think this helps my Sellers in their quest to market their apartment complex?

Do you think the poor condition the owner allows the tenant to get away with is something neighbors on either side would like to live next to…?

The Duplex Next Door

Do you think any Buyer/Investor is going to take into account the poor curb appeal of the surrounding properties and maybe discount the value of this street more than if it was in a more “pleasant looking” condition…?

If you’re thinking of selling a home, I think everyone knows that curb appeal is something written about all the time as a big item to put on the “to do list” in preparation.

So if that’s true, why would it be different for an investment property like a Duplex, Four-Plex or an Apartment complex….?

By the way, do you think the owner of this duplex allows her home she lives in to look like this..?   The answer is no because I took a copy of this picture you’ve seen here to her.   She’s a a local investor and trust me her front yard didn’t look anything like this.

If you have followed this blog site for any length of time, this has probably been one of my passions over the years.

If you’re an investor, please don’t be one that just wants to take all the money out.   Put some value back into your investment by creating a nice curb appeal that will draw the best tenants to you.   They will pay you more in rent because they know you care about the property and so they will get that message and help take care of it too.

It also brings the value of the entire neighborhood up if everyone on the street did the same.

In the Mean Time…?

Make it a Great Day..!

ED FAVINGER, BROKER CRS, GRI, SFR, CDPE    916-203-1260   favinger@rwnetwork.com

A Bank Owned Duplex – Rancho Cordova

This one is 3 bedrooms, 2 baths each side.

I ran across this Bank Owned Duplex for sale in at 3100-3102 Laurelhurst a couple of days ago and thought I’d profile it here.

With 3 bedrooms 2 baths on each side, this one will go fast and I suspect for a lot more than the list price of $227,500.

Click Here for the Proforma Cash Flow Analysis I prepared

The video of this property is below – Let me know what you think

 

If you are in the market for a Duplex that will cash flow, this might be the one you are looking for.

 

In the mean time…?

Make it a Great Day…!

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

 

 

 

Cash Flow in Rancho Cordova – Duplex for Sale

A rare Duplex with 3 bedrooms 2 bath on each side.

 

20140905_144808We put this property on the market at approximately 3:00 PM Tuesday and I had the 1st offer about 5 or 6 PM that day.

As of Friday, Jan. 30, 2015, I have had a total of 5 offers… Four of them are from investors and one FHA buyer that would like to live in one side and rent the other.

This used to be a run down area. However, since the City of Rancho Cordova has been incorporated, they’ve really made a difference because of stricter code enforcement in rental areas like the one this property is located in.

The Folsom Cordora School District has also upgraded the Cordova Villa Elementary School which is just up the street.

Our Property Management Company, Haven Properties has managed this property since the owner’s acquisition and can provide the history of income and expenses to show this is a great investment.

Click Here to get the info on this property which includes, some video (including a video narrated by Terry Bradshaw)  and the cash flow figures.

In the mean time…?

Make it a Great Day…!

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

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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