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Sacramento Buy and Holders - any out there right now?
Hey Fellow BP'ers,
I've started working with a RE agent in the Sacramento area to help identify possible buy and hold properties <$150k to be rented out. I've even expanded the search to condos with lower HOA fees <$150/month as the cash flow doesn't seem to be there at all. Our search has been primarily around the Natomas - Downtown areas, but there just don't seem to be any properties that make sense...like 2% cap rate kind of deals are what I'm seeing after crunching the numbers :(
My question is - are there any investors out there in the Sacramento area seeing deals over a 5% cap rate? What neighborhoods seem to make sense if a low cap rate is incurred...meaning is that a growing/great neighborhood with values expected to rise?
I'm willing to take a hit on cap rate if there are undervalued neighborhoods worth looking at that can grow in the next few years...or are being gentrified.
Thanks in advance for any insights from locals!!