Roseville, CA · Member since 2016 · 4 posts · 3 votes
Searching around and found this. HOA dues seem reasonable, needs work but it's a 2-BR for less than $100k. I'm sure I'm missing something or many things. Thoughts?
@David Zocchi -- I actually looked at a fourplex in this area, so I have a story that will help add some context to the neighborhood...
The numbers looked great on paper, and the price was right, so my client was quite excited to go and view the property and make an offer...
As soon as we turn the corner into the neighborhood, there was a guy with a couple pitbulls nearby throwing money into the air and rapping into the camera while filming a rap video with his friends. Dead serious lol. We didn't even stop to get out.
And @Gordon Cuffe is correct, the confidential agent remarks on the MLS listing note that "Property was broken into by vagrants, windows broken. It has been secured and boarded up."
Here's a look at the crime in the area for the past 6 months. Notice all the robberies and assault charges:
This is definitely an area I would recommend avoiding. You'll probably have way too many problems managing the property. Not worth it.
As for the 1% Test/Rule, it's extremely rare to find a local property that goes above 1%, and it will most certainly be a 2-4 unit multifamily property. But you can regularly get in the 0.80% range for sub-$400k properties.
The whole 2% Test rule-of-thumb is intended for $50,000 property that rents for $1,000 per month.
In California you'd need a $400k property to rent for $8k per month to hit 2%, and as soon as you find one of those let me know because I'll be the first to buy it ;-)
I looked back at the history on this property and it was purchased for 33k in 2011.then sold and purchased in 2015 for 53,500.0. Now the agent notes say property was broken into and windows broken so it is boarded up
Based on the comps, these units consistently go for under 100k (between 70-80k). The stated rents on some of the comps are between $750-$800/month. Here is full redfin link:
@David Zocchi -- I actually looked at a fourplex in this area, so I have a story that will help add some context to the neighborhood...
The numbers looked great on paper, and the price was right, so my client was quite excited to go and view the property and make an offer...
As soon as we turn the corner into the neighborhood, there was a guy with a couple pitbulls nearby throwing money into the air and rapping into the camera while filming a rap video with his friends. Dead serious lol. We didn't even stop to get out.
And @Gordon Cuffe is correct, the confidential agent remarks on the MLS listing note that "Property was broken into by vagrants, windows broken. It has been secured and boarded up."
Here's a look at the crime in the area for the past 6 months. Notice all the robberies and assault charges:
This is definitely an area I would recommend avoiding. You'll probably have way too many problems managing the property. Not worth it.
As for the 1% Test/Rule, it's extremely rare to find a local property that goes above 1%, and it will most certainly be a 2-4 unit multifamily property. But you can regularly get in the 0.80% range for sub-$400k properties.
The whole 2% Test rule-of-thumb is intended for $50,000 property that rents for $1,000 per month.
In California you'd need a $400k property to rent for $8k per month to hit 2%, and as soon as you find one of those let me know because I'll be the first to buy it ;-)