SO MAYBE YOU SHOULD “FISH WHERE THEY AIN’T”
“Fish where they ain’t” is a slogan I got from Ed Keller, another long time Real Estate Broker from one our Realty World offices in Amador County. I have his link on my side bar if you want to check that area.
So with those words in mind I’ve been scouting out potential cash flow opportunities besides those that are Bank Owned/REO type of situations.
I came across two duplexes that are side by side on the corner of Gibbons and Walnut – 3852 through 3858 Walnut Avenue. CLICK HERE FOR A CASH FLOW ANALYSIS
These properties have been on the market for over 90 days. Rents vary from $700 to $900 per month. I based my market analysis on $900 per month. You can go and get a rent comparison to see that $900 is possible.
I think these could be a good deal if you can buy these right. My cash flow figures were based upon sales prices of $200,000, but these should sell for a lower amount based upon the rents that they are getting now.
However when you are a landlord that prices your units below the market, you will then make it difficult to sell at top dollar, which I think is the case here. But… these duplexes have a good location in my opinion. They do need some curb appeal updates and probably will need some interior work as well to get that top dollar income.
In other words, since no one else is bidding on these as far as I know, maybe if you “fish where they ain’t” you might get a decent catch.
Make it a Great Day….
Great blog–I enjoyed it!
I’m relatively new to the area, and am trying to soak as much up as I can about RE in the area, but my personal experience owning rental property says that this deal is a little too slim.
Again, I know nothing about the market, but I don’t think I could justify the numbers on this one (at 2 units bringing in $900 each) for any more than about $180K-$190. And you say the current owner isn’t bringing in the $900/unit?
Great blog!
PJ…
You are right.. even when I bring the price down to $200,000 and assume $900 rents on each side.. the profit is “skinny”…
So for these places to sell.. in my opinion, someone is going to have to belly up to the plate and make an offer and beat them down to reality.
A decent deal would be about $180,000 assuming there isn’t much to do inside and you got a clean bill of health for pest control repairs and a roof certification.
Make it a great day….