Sacramento Real Estate Views

2217 15th Avenue, Sacramento

Just Listed!

I’ve just listed a fourplex in South Sacramento on 15th Ave.  I helped the seller to purchase this property last year and when he bought it, it was a mess.  2 of the units were in decent shape but the other two were in hellish shape.

He spent the money and fixed up all units and improved all systems that needed repair.

Each unit is 2 bedroom, 1 bath at an estimated 800 square feet.  The roof is in good shape and there are some minor repairs that will be completed prior to close of escrow.

The landscaping and auto sprinkler system have been repaired.

The condition here is virtually turnkey.  There will be a commercial pest/insect spray prior to close as well.

Rents

Each unit is currently rented for $650 per month.  There are no section 8 tenants.  There is also a small income coming from an onsite laundry area but this is nominal.  Each unit has a lease of varying length from 3 to 12 months.

That’s an estimated 8.44% cap rate on 25% down, 5% – 30 year fixed.

Location

The location here is good.  Very close to both Highway 99 and I-5.  In addition, it’s just across Sutterville Road from Sacramento City College and just across Freeport from William Land Park.

For more information on this listing or any other listing in the Sacramento region, please fill out the form below and we’ll get back to you promptly.

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All information is estimated.  Buyer to ascertain for themselves all questions regarding condition and investment viability.  Buyer responsibility to verify all assertions.

Tags: investment property sacramento

HUD Lifts “Flip Rule”….For Now

90 “Flip Rule” Gets 1 Year Moratorium

In an effort to protect home buyers against investors buying substantially below market and selling a home at inflated prices, HUD instituted what’s known as the “flip rule” preventing federally insured (FHA) financing on any home with 90 days of the last sale date.

Supposedly, this was to protect “unsuspecting” home buyers from paying more than the home was worth.

While it is highly unlikely that this “flip rule” did anything more than delay getting homes sold in a more expedient manner, it has been given it’s own year long moratorium unless the FHA commissioner extends it out further.

There are so many other safeguards in place to protect home buyers, like appraisers who will subvert values out of fear as they have been wrongly accused, in part, of creating the housing mess, that the flip rule was completely unnecessary and prolonged the time that a home sat vacant costing sellers money in the process.

While FHA home loans weren’t the only loans available, private lenders also followed the HUD guidelines making it difficult for investors to purchase property, repair and resell within 90 days of purchase.  This is part of the reason, among others, that all cash buyers are preferred over financed real estate transactions.

Lenders are knee jerk mode.  Getting a loan is tougher than it’s ever been so this is a welcome sign for buyers and sellers.

Moratorium Guidelines

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Tags: investment property sacramento