Since we looked at the two small houses on one lot in Nevada City for $259,000 about two weeks ago, I thought it would be good to compare that deal with the a duplex in Grass Valley.
19229 State Hwy 49, Nevada City, 2 small homes on one lot, $259,000 How come so cheap?
The Nevada City duplex properties were both “fixer” homes with obvious dry rot in the decks, as well as known septic issues. But of course, both those units were rented with a combined monthly revenue of $2200, or $26,000 gross for the year. Regardless of the repairs issues, known and unknown deferred maintenance, it is not surprising that 19229 State Hwy 49 went pending in less than 10 days. It is a pending sale now, and I will keep a watch on it to see what the final settlement price is when the escrow closes. In the mean time, 340 N. Church is a duplex, where the two units form an “L” shape sharing just one wall. Both units are about 1000 square feet each. They have the same floor plan, two bedroom and one bathroom, with a living room and a kitchen, with a laundry room on one end. The building was built in 1947, and clearly has deferred maintenance issues, but because they are within the city limits, there is piped treated water and sewer, and there is plenty of flat parking on .27 acre lot. Each unit rents for $1400 per month, or $33,600 gross income for the year.
OK, I went out and looked at this investment property and this is what I saw- Yes, there are two small homes, 19229 Hwy 49, a 1.74 Acre parcel that sits on small ledge just above the highway on the way down to the South Fork crossing of the Yuba River. The lot itself is pretty much unusable except for the ledge where two homes sit atop a gravel driveway.
So, what’s up with these houses? The larger home is a two bedroom two bathroom home that looks like it was last remodeled in the 1980’s, has decent fixtures and finishes. There is some water damage on the interior sheet rock, but the tenant told me that the roof leaked last year and the owner made some repairs and roof stopped leaking. The damage to sheetrock seemed fairly superficial, but there is definitely a need for repair and painting around a sky light in the kitchen. The home also has a deck that runs around the outside of the home that needs to be removed and replaced. Another issue is the septic system. The owner had a septic inspection, and it appears that the septic did not pass the inspection. The septic report says the fluid is draining, but it was not clear where the effluent was draining to, since the tank is cracked and leach line may not be functioning. There are lots of blackberries growing down below the house. This might indicate where the system is draining, but it would take further investigation to know exactly what is happening. Also, one more thing, the house has a nonconforming foundation. The foundation of the house is stacked rock with mortar. There is no perimeter foundation.
The smaller house is a one bedroom, one bath cabin, also looks like it was last remodeled in the 1980’s. It is also a in good condition on the inside. The exterior of the small home is stucco, and look like it is fairly good condition.