Tag Archives: Questions

Property Tax Reassessment in Sacramento

Many that bought homes several years ago in the peak of the market should expect some real estate tax refund or a credit to be applied toward your next fiscal tax year.

Download the “Decline in Value Reassessments” form at:

http://www.assessor.saccounty.net/coswcms/groups/public/@wcm/@pub/@asr/@inter/documents/webcontent/sac_018985.pdf
You can also check out the new 2009-2010 assessed values for you properties with the County of Sacramento

http://www.assessor.saccounty.net/SacramentoCountyParcelsReducedPerProp8DeclineinMarketValue/default.htm
You may need some assistance in determining the value of your property. Give me a call and I can help.

More Investor Questions in the Sacramento Metro Area Real Estate Market

Here are some more questions I get asked regularly…

1) How much under do you think we can offer?

While this varies, it’s usually asking price to start or over asking.  I always do two things for the client:

– Show the client a market analysis to show them the price point and what other homes in the area are going for.

– I always call or contact the listing agent first to see if there are any offers and if so, how many.

These two things will determine the price range in which we will make our offer.

2) How long are properties sitting on the market?

On the lower end (meaning $100K and under OR on multi-family dwellings, whatever will pencil out), properties usually go within one week or less. If they do not move quickly, then the property is over-priced or compromised somehow (i.e., location, amount of work needed, etc.).

Common Investor Questions – Sacramento Real Estate

I get many questions from interested investors, so I thought I’d start posting them, as I’m sure others have the same questions.

Question/Inquiry from potential investor [May 27, 2009]

I heard that it is possible to achieve ~ $600 per month positive cash flow.  I would like to develop in my mind a profile of these types of properties so that I have a better idea of what I am looking for.

Here this is how I responded:

1) Cash flow will always depend on your finance situation.  For instance, the more money one is able to put down, the more cash flow (up to 100% cash flow).  My first question for you is, how much are you able to put down?  Or, what is your comfort level?  Or what is your budget?  Are you obtaining a loan?  Or would this be a cash transaction.

2) One way many investors are generating big rewards and high cash flows is to buy under valued properties that need value added.  This demands cash reserves to do put toward renovations.  Also, many times these types of properties do not qualify for a loan due to the poor condition of a property.

3) Also, $600 cash flow might be on the high side of expectations.  I have closed a few deals with investors that have received that kind of cash flow by putting 20% down and at times buying their rate down.  One recent scenario was a duplex that sold for $105K; 20% down; $10-12K in renovation; bought the rate down to about 5.25% – his total housing payment (including taxes and insurance) is about $700/mo. and he’s getting $1600 in rents.  This is a dream scenario, but as you can see it takes some reserves to pull it off.

4) A very common situation is a SFR in the $80-120K range that needs $2500 in repair, and would cash flow $300-$400/month.

What questions do you have?