Spring Brings Cautious Enthusiasm

Thank goodness the weather has warmed up! Although Sacramento and Folsom have been beautiful for a few weeks now, uphill Pollock Pines got its first seventy degree plus weekend this last Saturday and Sunday. Flowers are finally beginning to bloom - and with them come the real estate signs. REOs are a rarity here in Pollock Pines and Placerville - and when they come on the market they sell pretty quickly.

In Sacramento though, the opportunity for investors is endless. There seem to be certain areas where REOs sit for a long time before someone buys them. One of these which I've been focusing on with one of my investor buyers is the Fruitridge area. 2 - 3 bedroom houses are selling there for right around $100,000 - an incredible rental if you can make it work. Rents range from around $900 - $1100, so potential for cash flow seems pretty good. The only problem with this area is the homes are older and some are in need of repair. Getting them updated (usually they don't have central air either) requires a cash investment.

The clients I'm working with now seem enthusiastic about buying a home at this time but are also cautious. It's a good idea to be cautious anyway - you do better due diligence that way. Especially with REOs since no one knows the condition of the property it is especially important to get all your inspections done.

If you're looking for a good cash flowing rental, go here. You might just be surprised.