Sacramento Real Estate Investing
November 15th, 2008 categories: Market Commentary
Positive Cash Flow in Sacramento Rental Property
The market and time of year that we’re in brings investors out from everywhere. This is the best time of year to get a deal due to the normal seasonal slowdown.
I got this email from a friend who turned a recent purchase into positive cashflow.
Keep It In The Family
Brian writes, “My cousin works for a company and they are one of about 10 people that have access to buy directly at the courthouse auction. He’s down from Chico 4 days a week on the steps of the courthouse and has been buying anywhere from 2-4 homes a week in the lower price ranges. He said some they’ve simply rented a carpet shampooer, did some dusting themselves and had it back on the market within 24 hrs!! Others obviously need more work but there are tons of deals out there.
I was going in on one with my cousin that he was selling (pocket listing). He backs out so my dad walked right into it. We had inspections today and there was just minor damage in one of the bathrooms (dry rot). $1000 in repairs tops if that, no biggie. Even less If my old man does it himself.
Great rental area in 96823 of 47th Ave. (Dawson Ave), a stones throw from an elementary school. Paid $115,000.
3 bed 2 bath, 1320 sq. ft. with 2 car and 2 living areas on a 6000ft lot. Newer dual panes, Newer AC, new roof last week ($6500), seller paying title/escrow, $1000 towards section 1pest, and another $1000 towards closing. Looked in a bunch of those foreclosures around there and they were all smaller and in need of a ton of work. Just a good blue collar neighborhood.
Here’s the kicker which makes the deal:
All monthly expenses included, with 20% down, the payment is right around $800.
Brand new lease with tenants in place. My cousin signed them to a 2 yr lease at $1280!! A gold mine and I wish I had the extra cash to go in on it!!”
That’s almost $500 positive cashflow per month. Sweet!
There so many of these stories out there right now. If you’re looking to create one of you’re own, please give me a call. I can help you make it happen.
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