You know folks, I’ve been Selling and Managing Duplexes and other Residential Investment properties for over 35 years. It always amazes me these days how little many investors put anything back into their investments in the way of improvements.
Improvements not only increase the value of your investment but, you’ll find out that you’ll usually find a better class of renter that also cares about where they live and they look to find the best option for their rent payment.
If you decide to get into the Residential Investment property market you should think about not only cash flow, but also maintaining and improving the property for the long term.
I recently toured a Duplex for sale located at 2201-2203 Zinfandel Drive, Rancho Cordova and was disappointed. The Original List price back on August 22nd was $599,000. Only one unit was rented which is not uncommon when you see a Duplex come on the market, but the rent on the occupied unit was a bit low and the vacant unit could have been updated some to get top dollar.
Click here to get a “proforma cashflow” sheet. You’ll see that to get it to pencil out the price has to come way down. If you want to see a “rent survey” click here to see what they are going for in the area and you’ll note the rents in that survey aren’t as high as I projected for the vacant unit.
Check out the video below to see what I’m talking about.
Some of the things this owner could have done are:
- Install Closet Doors – I mentioned mirrored doors, but they didn’t have to be, but at least install some closet doors.
- They could have upgraded/updated by installing “colonial” panel doors in the bedrooms and the bathroom that gives it an updated look.
- Front yard landscaping that you saw at the beginning of the above video just shows to me how little this owner wants to put back into the property. Keep in mind it’s on a busy street – so if you want top dollar on rents, how about giving back and installing some “curb appeal”…?
- The backyard could have been made as an “oasis” where the people living there could use it as “an extension of the living area”.
If you want to see an example of a nice-looking Duplex with some of the amenities I am talking about…? Then please click here to see the difference. This Duplex is approximately the same age, the same older cabinets, but updated with granite counter tops, upgraded bathtub surround and a back yard patio ready for those family and friends get togethers. It’s also on a busy street but look at the difference in the “curb appeal” which I think helps compensate/mitigate some for the busy street.
If you are thinking of Selling or Renting out your Duplex, then give me a call at 916.203.1260 and we’ll go over your circumstances and help you get the best price if you wanted to sell, or we’ll take over management and help you get more “cash flow”.
Now in the Meantime…?
Make it a Great Day…!
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