Posted by John Lockwood on June 28th, 2007
This morning while searching the MLS and getting lost in all that real estate inventory out there for sale, I noticed a house on Priscilla Lane that is such a steal, I would write an offer on it today. Alas, I’m fully invested and my husband will definitely want to send me to be mentally tested if I thought about another home.
My ambition, like someone else mentioned in the SacBee a while ago, is to own entire streets. Monopoly player, for a long time (and Scrabble too, which is the right combination for a Realtor®, I guess!) This real estate investor owned all the houses on the street he lived on and the Bee cautioned him that he was not “diversified!”
Let me fall back on my favorite quote from Warren Buffett again: “Diversifying is insurance against ignorance.”
But, back to the neighborhood: the Colonial area is largely ignored by investors and first-time homebuyers today for two main reasons:
1. There seems to be a general look of untidiness in the neighborhood, thanks to the vacancy factor of foreclosures, and
2. The zip code 95820 is shared by Oak Park, which we know not too many people want to move to because of the crime.
To combat that, I say:
1. Foreclosures have hit this area hard – which makes it perfect for you investors! and
2. 95817 is also shared by Oak Park – these are postal codes, not crime or wealth codes.
And the fact remains, if you’re looking for great deals, they’re all here! The average home is about 1000 sq. ft. with 3 bedrooms and 1 bath. Backyards are modestly sized and streets are cleaned every month on third Thursdays. (Yes, I did live there for a while – in a home we knew would be a good rental in a couple of years.) Most homes have real hardwood floors and if you get lucky, homeowners have put on new roofs and central air. Rent hovers right around $1250 a month. Property values are depressed now to about $180,000 but generally have been hanging around $250,000 for a turnkey home.
If you have an extra $50,000 to invest, you should be looking around Colonial! Consider these!