New to Real Estate · Member since 2019 · 120 posts · 26 votes
I am exploring elk Grove 95757 zip code area to buy investment SFR property. I am planning to hold this property for 7-10 years and property appreciation is my primary goal. Yesterday I visited this area and there is a lot of new construction going on. How is the rental market here. I searched for Zillow rentals in the 95757 area and saw very few rental listings. Most of the properties are lower 600's and rents range from 2500 - 2800$. Is elk Grove good area to buy and hold for the long term even though there is some -ve cash flow? Any thoughts/suggestions. Thanks
@Ramki D. I'm in 95757 and it's a high barrier of entry for SFR like you mentioned, $600k+. I think it's mostly an appreciation play if you can even cash flow anything. With the new hospital, casino, expansion of grantline road, good schools and various other infrastructure building it's ripe for appreciation. In terms of rentals, it's doable if you get a great below market deal. Also look into section 8 vouchers for high bedroom count homes, as a 4bd gets you about $4200 in 95757. Let me know if you need boots on the ground!
@Omar Barker thanks for your thoughts. New hospital,you mean, dignity health ? I thought it is approved and will be completed by 2026-27,is that right?
Are you saying 4beds can be rented for 4200$? Imo, that is too high, can't doable.
Yes, I believe it's currently a dignity hospital slated to be built by Costco. I'm not a 100% sure on build time, I thought it was earlier than that but I'd have to dig. Sect 8 is government backed and mostly recession proof and will pay up to $4200 in 95757 for a 4 bedroom, $4800 for a 5 bed. Search shra housing voucher in the area.