Beware of Tenants

When tenants in your rental go bad, they can go REAL bad. Check out some of the photos of this home in Old Jefferson after the tenants vacated. They basically didn’t let their pets out of the house for two years. If it is what you think it is, you are absolutely right….

This caused about $6,000 worth of damage to the house and required the entire concrete floor to be scrubbed and resurfaced in order to mitigate the stench, meaning all flooring had to be removed. Every wall had to be repainted since they also decided to repaint without permission either. Word to the wise – screen your tenants and check in OFTEN!

20150409_074746 20150409_080641 20150409_080733 20150409_080819 20150409_082731 20150409_082746 20150409_082816 20150409_082829 20150409_082905

David Madaffari, Realtor

Mobile: (225) 772-3283
Email: David@GrassrootsTeam.com

Jonathan Diez, Realtor

Mobile: (225) 938-4653
Email: Jonathan@GrassrootsTeam.com

Keller Williams Realty First Choice
17111 Commerce Centre Dr.
Prairieville, LA 70769
(225) 744-0044

Multi-Family Property Roundup

Here are some of my favorite multi-family property listings on the market right now, that have great returns that justify the prices they are asking.

5244 Brightside Park Units A-D, Baton Rouge, LA 70820

  • 4 Units, 2 bed/1.5 baths, 1,100 sq ft each in great shape.
  • Asking $419,900, Potential gross income $4000/month

 

 

343-345 Jennifer Jean Dr, Baton Rouge, LA 70820

  • Two 3 bedroom/2 bath units close to LSU, renovated nicely.
  • Asking $225,000, Potential gross income $2,200-$2,400/month 

4504 Walmsley Ave, New Orleans, LA 70125

  • Two 3 bedroom/1 bath units, renovated in New Orleans.
  • Asking $195,000, potential gross income $2,100/month

Call me to place a bid on any of these, I have extensive knowledge on each!

David R. Madaffari, Realtor
Keller Williams Realty – First Choice
Office: 225.744.0044
Cell: 225.772.3283 (DAVE)
37325 Market Place Dr. Ste D
Prairieville, LA 70769
www.DavidMadaffari.com
Each office independently owned and operated

Home Prices expected to rise 4.8% in 2015

Investors Business Daily, my go-to site for stock and economic news had this article regarding home price trends in 2014 and the outlook for 2015.  It’s a quick read, but very informative.

http://news.investors.com/business-inside-real-estate/020715-738427-real-estate-home-price-forecast.htm?ref=HPLNews

Maybe I should invest in some DR Horton stock – they’re building everything in sight these days!

– David

 

Cash is King – REO Property Sales 2014

Yesterday we saw that all distressed and REO property sales in Ascension combined for a 97% average list/sold price ratio when considering all types of financing.  When we think about that, that’s pretty much a normal market for non-distressed property.  “But aren’t foreclosures and short sales supposed be deals for investing?”  Yes, but knowing HOW to buy is just as important as WHAT to buy.

Simply put: Cash is KING.

Looking at the cash sale numbers you’ll see what I mean.  Check out the percentages now for all 58 cash purchases:

2014

2013

In 2014, the average discount you could expect was 87% from the original list price; in 2013 it was 86%.  Looking at the bottom line of each graphic, the total volume of lis/sold prices was 86% in 2014, 8 points higher than the total volume of 2013.  The conclusion? There is more competition for these properties.

So while banks are putting their properties on the market at fair market value,  the ability to pay cash is the best leverage you can have to get the right price.  Offering at 86%-88% of list price represents where you can expect the highest rate of negotiating success.

Tomorrow we’ll do all East Baton Rouge cash sales.  In 2013 the average was 88% – how did 2014 fare?

David R. Madaffari, Realtor
Keller Williams Realty – First Choice
Office: 225.744.0044
Cell: 225.772.3283 (DAVE)
37325 Market Place Dr. Ste D
Prairieville, LA 70769
www.DavidMadaffari.com
Each office independently owned and operated

REO Properties – 2014 Sales numbers

In today’s REO Properties update, we look at the numbers for all Ascension Parish distressed sales in 2014. These are for ALL financing types, not just cash only sales:

2014 Ascension parish REO Sales

Compared to 2013:

The main numbers to look at are the Avg Selling Price to List price (SP/LP) ratio.  For all sales, foreclosed homes sold for 97% of the bank’s list price at the time of sale in 2014, up 1% from 2013.  The implication here is that Baton Rouge is a hot foreclosure market not just for investors but for all buyers.  Banks know this, so it is more time-consuming to find the deals.  We have seen more financed foreclosed sales from owner-occupants in 2014 than in 2013 too, which means investors have faced competition for the same property they enjoyed almost free reign on from 2011-2013.

Tomorrow we’ll look at how just the CASH sales for Ascension parish REOs changed from 2013 to 2014, a figure investors should use to determine what their bid prices should be for 2015.

David R. Madaffari, Realtor
Keller Williams Realty – First Choice
Office: 225.744.0044
Cell: 225.772.3283 (DAVE)
37325 Market Place Dr. Ste D
Prairieville, LA 70769
www.DavidMadaffari.com
Each office independently owned and operated

Can Tigerland be saved?

I’ve been wondering about this for years.  What seemed like a good investment for rental investors is now becoming a no man’s land.  The 70s era pictures of Tigerland are great though!

Can Tigerland be saved?

 

 

 

 

 

 

 

 

David R. Madaffari, Realtor
Keller Williams Realty – First Choice
Office: 225.744.0044
Cell: 225.772.3283 (DAVE)
37325 Market Place Dr. Ste D
Prairieville, LA 70769
www.DavidMadaffari.com
Each office independently owned and operated