| Multi-Family
Investments in Fresno 2008
Near Zero Vacancy Factors – Great Profit Potential
Larry Hawkins, Investment Broker
Market Conditions: (March 2008) Buy low - Sell high! A temporary excess of
inventory in the small apartment market in the Fresno/Clovis area has
created some great buying opportunities. Some real bargains await the wise
investor with a 3 year or longer game plan.
Property Selection – Apartments:
1) Rent bracket - The vacancy rate is
at historic lows. The rental range that I find most desirable
is in the $600 to $900 per month range. This means we
are recommending older existing units. Newer units now
being planned will be built at a cost that will not allow
them to compete with the rents of older properties. This
means competition will be limited to existing properties. Read Article...
Fresno Area Rents Analysis
First Quarter 2008
Larry Hawkins, Investment Broker
The single-family rental market has seen an increase in number of homes for rent. This is because many would be sellers are unable to sell their homes in the current resale market and instead of selling are forced to convert the property into a rental. This increase in available rental homes has kept rent incomes for houses at a flat rate for the past two years and those rental rates will continue flat for the next 24 months or so. Vacancy remains low due to population growth and foreclosures forcing previous horne owners into becoming tenants.
The apartment market is a different story. Most multi family buildings in the Fresno market were built in the 1960-1970 era and rent on those units average $625 per month for a typical no frills two bedroom one bath. Read Article...
Fresno Housing Market - 2008?
Larry Hawkins, Investment Broker
An excess of available properties has created a terrific Buyers market This is your
opportunity to buy the home of your dreams.
For Investors - see Single Family Homes as Income Properties and Estimated Cash Flow - Single Family Homes.
All sources predict that the Fresno area is going to double in population by 2040. This means about 30,000 new residents per year.
According to the Brookings Institute the Fresno - Madera markets will need 158,000 new housing units by 2030. The population of Fresno County is projected to be 1,658,280 by 2050, up 106% - twice the rate of growth as the rest of the state. Read Article...
Single-Family Homes as Income Properties,
Fresno Area 2008
Larry Hawkins, Investment Broker
March 2008 - The single family home market is a mess! Over building by developers, foreclosures and short sales, and tightening of credit standards have created a glut of inventory that will take about two years to work through. The information below applies only to a normal market.
Safety: In a normal market single family rentals are considered one of the safest investments available. Rental rates rarely if ever, decline. Vacancy is extremely low. Tenants of homes are more stable than apartment dwellers so you have lower maintenance and vacancy costs. Homes also offer the best inflation protection available.
In the event you need to cash out, there is normally a market for houses. Remember, multi-family units are purchased only by investors. Houses are purchased by owner occupants or investors. Read
Article...
~ Summary ~
Single and Multi-Family Income Properties
in Fresno and Clovis - 2008
At present, (first quarter, 2008) I am not recommending single family homes as income properties. A serious glut of inventory will take approximately two years, maybe longer, to work through. Two to four units are becoming more affordable as the market works through a price adjustment and there are some very good buying opportunities. Five or more units are the best value at this time.
For information
on houses, see my Single
Family Homes as Income Properties and Fresno Housing Market articles.
For current information
on apartments, see the Multi
Family Income Properties and Fresno Area Rents Analysis.
These articles presents discussion of how projected rent
income changes can dramatically increase cash flow and as a result, increase
the overall value of the property. Also included are links to worksheets
for the Estimated Cash Flow of
a 4plex and Estimated
Cash Flow for 12 units.
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