For July, I decided to put myself in an investors shoes for a few minutes and scout the Davis real estate market to see what kind of deals are out there. I pictured myself as an investor that wants to find an investment home to use as a rental. But, a few parameters -
First, I would want to make the purchase, and close, in time to rent it out before the University starts it's fall session. That means a property that can close quickly. So I'm not going to look at any property that is a short sale. I can't be waiting around to hear from a bank. It could be months before they respond.
Second, it has to be in good condition. I don't have time for a lot of construction and rehab, and I want this home generating some sot of revenue by fall.
So I narrow my search and look for good buys in Condo, half-plex, and single family home. This is what I found.
Property #1 - The Single Family Home
Here's an investors dream. 4 Bedrooms and the price was just reduced, so we might have a motivated seller. The home has a large backyard already fixed up for the vegetable gardener. At just $379,000, that's just $94,000 per bedroom for a single family home. For a four bedroom home in east Davis rents currently run from $1,700 to $2,000 per month. You do the math. This could be a winner.
Property #2 - The Half-Plex
This is a sweet halfplex in a great location, right across the street from a large park, and down the street from a great shopping center. This beauty is just made for the universty rental market. No problem finding renters here. It's a clean 3 bedroom, 2 bath unit with off street parking. It has vaulted ceilings, newer appliances and roof so your maintenance costs should be minimal. It was built in 1990 and looks sharp. It's priced at $379,500.
Property #3 - The Condo
This is the cheapest property in Davis, that's not a short-sale. It's only one bedroom, so it would be better suited for the first time buyer, a couple or single person. This is a large one bedroom, One bath condo in Stonegate and includes Stonegate country club priviledges (Tennis, Pool, Workout room, Lake with picnic area). Close to shopping, too. There is the matter of quartery dues of $121. Okay, maybe not an investment rental, but at $229,000 still a great buy.
Summertime in Davis is the time when a lot of rental properties change hands. Students graduate, people leave town and move on. The next batch of students arrives looking for housing. If you are an investor looking for property in a University town, Davis is the place for you. I have more detailed information about Investing in Davis Real Estate on my website.
For July of 2010, these are three of the better buys in Davis right now. If you would like to see any of these homes, give me a call today at 530-219-7653 and we can set an appointment for you to see them, or any other Davis property.