JUST CLOSED ON MY 2ND UNIT!

13 Replies

JUST CLOSED ON MY SECOND UNIT! I have owned my first rental since 2013. I bought it as a gift for my-then, girlfriend. She has now become my wife, and after the success of our first property, we decided we would go for it again. Just closed escrow on a 4 bedroom 2.5 bath in Elk Grove area. I bought it with about $12k equity still in the property (I know it's not much but its something) and we are going to be listing it soon. Would love to hear who people are using for tenant screenings.Also, how do you guys feel about ARM loans for a buy and hold investor?There are still some attractive rates out there and I could get a 3% rate on a 7\1 arm. I figure within 7 years I should be able to pay down the balance substantially and could refinance for a lower payment, if I still have the loan.

What are your thoughts?

Is this going to be a long term buy and hold?  If so, on properties like this I'm doing fixed rate 15 or 30 year mortgages.  The rates on these are once-in-a-lifetime low and are only going up.

Good for you, I lived in Elk Grove for 2 years. What are your numbers, I rented a home for 1450 a month. It was a B neighborhood and a 4 bd 2 ba.

Hi

Jay Whitfield

its a 4 bedroom 2.5 and I have it listed for $1850 a month. got a few interested buyers coming by this weekend.

@Mansoor Fazel

Congratulations, and compliments on a great choice.  IMHO the sweet spot in the single family market is the four bedroom, and there is certainly a level of "frantic" in prospective renters right now.  

So many folks are exiting the SFH rental market, (either they never really wanted to be in it in the first place and got stuck, or they are investors and they're taking their profits elsewhere), and most of those homes aren't being returned to the rental inventory. It's a good time to be a landlord in the Sacramento market.

That's awesome man. What was the purchase price?

That's awesome! Congratulations!

Thats great!  I'm managing a friends property in Elk Grove.  It's only 3/2 and a B- neighborhood but still getting good rent.  Looking for more right now.  How did you come across yours?  

@

Richard Goore

i contacted some local property management companies. i found one that was also a realtor and together we toured several houses until we found the right one 

@Minka Sha i got the place for $286k and it appraised for $296k at closing 

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