Realistic expectations for a deal in Sacramento?!
Hello everyone,
I was hoping for some advice on where to begin in realistic expectations for the Sacramento area. Clearly the 2% and 50% rule are tough to find in CA and even Sacramento, so in order to not turn EVERY property away, I need to know what I CAN find that is a good deal.
Given that 25% down on a 200,000 SFH in Sacramento would exhaust all of my investment capital, is this the smart place to put my money? Especially when the 2% rule is more like the .8 - 1% rule here, and that is considered good?
Is it wise to put all of my current investment capital into a property that will yield neutral cash flow assuming I buy right and can keep it occupied without lapse?
The upside to that risk is that I would be banking on appreciation and later increasing rents, and after all that sounds better then sitting on my money for 5 years until the next market cycle. But that can also be dangerous.
I would love to do multi family in Sacramento but those seem even more difficult to find, not to mention that I would have to raise additional money to get one.
Given that others seem to be having problems finding deals in this area also (just my view of things from the forums), out of state investing towards the middle of the country seems very appealing, especially when I see people talking about 25K a unit. But as a noobie out of state seems a bit daunting and an easy way to get into trouble.
In all fairness I have not established a relationship with many brokers or wholesalers in the area, nor have I established a good network yet, so I cannot give up before I really even begin right!
I am simply looking for guidance on where to start directing my efforts and training my brain given the economic landscape. Thanks for any advice you can give me!
Tyler Haskell