http://bit.ly/Short-Sale-Value-Down
In the Mean Time..?
Make it a Great Day…!!!
Ed Favinger, Broker, CRS, GRI, SFR favinger@rwnetwork.com 916-203-1260
Let’s start with the 1st one that is located at 6128-6130 Oakgreen Circle in Carmichael. It’s been on the market for a little over a year and started out as a “short sale” but wound up as a foreclosure and now offered for sale as a “bank owned” property.
Oakgreen Circle is an interesting little street of “Pride of Ownership” type of properties that have many of these Duplexes occupied by their owners. If you are a First Time Buyer, this would be an excellent property to make as your first home.
I have the estimated cash flow figures and a “walk through video below. You will notice that I have an offer price lower than the list price but the cash flow based upon a higher sales price and that is because it’s going to take about $45,000 to $50,000 to really get this property right. After that… it should be a “coupon clipper” for years to come.
Click Here for the estimated cash flow figures.
Click here for the Walk Through video and I think after you have seen it, you’ll realize it has potential. It just needs the right kind of investor looking for a long term hold.
UPDATE AS OF 12:53pm... When I wrote the information above early this morning, the property was still showing “active”… well wouldn’t you know… someone thought it was a good investment and made an offer on it… I’ll keep an eye out for it and see what the ultimate outcome is and post it here…
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The other property is more of what I call an “investment” and is located at 8145-47 Desesret Avenue, Fair Oaks, Ca. I inspected this property late last week. I know this area well, because I also just closed a deal on a duplex just a few doors away on East Knoll, a cross street.
My estimate to bring this one up to a nice condition would be approximately $15,000 which would be enough to get in the interiors fixed up and have enough to allow you to put some “curb appeal” landscape improvements in.
It’s listed at just over $194,000. The most recent sale was just a tad over $190,000 with about $3,000 credit going back to the Buyer in the form of closing costs and was tenant occupied at $900 per month each side. The cash flow figures I have are based upon an assumption of a sales price of about $180,000 and approcximately $15,000 in fix up costs, which brings it close to the original list price coincidently.
Click here for the estimated Cash Flow after fix up.
Click here for the “walk through” video.
Make it a great day…!!
Ed Favinger, Broker CRS, GRI, SFR favinger@rwnetwork.com 916-203-1260
If you’ve been to this site before, you already know that I am a big fan of Duplexes… especially the “REO or Bank Owned” type because they are for the most part deeply discounted from their highs from years past.
The dis-advantage to a Bank Owned or REO deal is that, while you get the property at a dicounted price, there will be that “as is” thing they insist on and with rare exceptions they don’t deviate from it. You get these deals with the property vacant, which means you have to go in and do the “fix up” to get them in a “rent ready” condition. If you want to see what an vacant REO/Bank Owned property can look like, go here.
Now even “Short Sales” are becoming a great deal because the banks are now more willing to complete them in a timely manner.
Well, for starters, most of the time in a Short Sale the property is still occupied by Tenants. The trick is to get one that has “rent paying tenants”. However, even though the case may be they are not paying rent, this could be the result of the tenants having been notified that a foreclosure is pending and they are holding funds in case they have to move. Or… the current owner has just abrogated the responsibilty and is not even making an attempt to collect it.
Either way in most cases you can work a deal out with the existing tenants to have them stay. Now keep in mind when an owner is in this situation, you will probably run into an old “deferred maintenance” issue that has been neglected by the current owner which, if resolved by you, will go a long way in keeping the tenant there and happy to stay.
The advantage then of keeping the tenant there is that you will not have to go in and spend the extra “bucks” to re-rent the unit.
And Finally.. the best reason to go after a Short Sale now is you still get the same “discounted” or “market price and that Lenders are beginning to approve them much quicker than in the past. How cool is that…?
You’ve come to the right place. I’ve analyzed both types and prepared “pro-forma” Cash Flow figures for each one on this page. I’ve got videos too on some of them. If you book mark this page, you will get updates as I go out and view these properties and post the information.
Make it a Great Day.
Ed Favinger, Broker, CRS, GRI favinger@rwnetwork.com 916-203-1260
