Requesting your advice on investment property in Sacramento

[Varsha Kgan]

Hi there, I live in Bay Area and appreciate your expert advice here. I am still learning as this is my first investment property. I hear that it is a good idea to invest and rent out a home in Roseville, Sacramento (new constructions 4 bedroom, 2 baths though I also plan to visit open houses) . Seems to cost approximately $615k .. I would appreciate your expert opinions, anything you may be able to educate me on reasons for appreciation, cash flow, re-sale, etc in Roseville/Sacramento.. 

So far, I tried considering investing in Bay Area (Fremont, Milpitas, San Jose, etc. ) , Mountain House, Lathrop, River islands, Merced.. but heard that Sacramento is better as the returns in Bay Area are not worth the investment as it is too expensive (though there is greater potential for appreciation which is not guaranteed), Mountain House has already reached peak and prices are falling, Lathrop (Stanford crossing with low school rankings) /River Islands  (school district but heard that it takes very long to find tenants): Mixed opinions that is fast growing but also that it is a just an experiment with high risk.. So I admit that I am confused and still debating which one.. I understand, but am not finding the courage to invest out of California.. .. 

Please also feel free to let me know if Roseville is bad idea or if there are better options.. :-) Thank you.

[Bradley Buxton]

@Varsha Kgan

Roseville is a growing area, and the proximity to the mountains is a plus. New builds can have great incentives for rates or appliances. There is a cap at 2% for seller credits on an investment property so even if they offer you 30K on a 615k home, you can usually only use 2%. Check the HOA/CC&R to see if there are any restrictions on renting in the development or any restrictions on investors buying. Some new developments require you to hold the property for a year before renting it out. I just ran into this with an investor in Reno, NV. 4 bedrooms generate more income and can be easier to rent out if they are rare in the area.