All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Companies Hard Money Lenders Contractors Investment Companies

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
ForumsArrowBuying & Selling Real Estate DiscussionArrow1st time home buyer
  • Newest Posts
    • Newest Posts
    • Unanswered Discussions
  • Trending
    • Top Discussions
    • Trending Discussions
  • Browse Forums
Search Nova
Create post

1st time home buyer

13 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
user profile avatar
  • Posts 3
  • Votes 0

Andrew Collins
Investor from Sacramento, California

posted over 5 years ago

Hi BP!

This is my first post, though I've been listening to the podcasts for a while now. A big thanks to Brandon and Josh for what they do!

I'm a recent (non real-estate) law school graduate taking the bar at the end of the month. In August, I'm moving to Sacramento for a new job and looking at investing there. I've figured out my financing (FHA supplemented by cash) and I'm looking to buy a SRF in the Sacramento and share it with a renter. I'm looking to purchase for 160k or less.

I've been having some difficulties finding a place with my agent and have a few questions:

1) I've been looking on the MLS and it seems that every decent property in my price range is snapped up immediately. I've also put in an offer on a property only to be been drastically outbid. Does anybody have experience successfully buying with non-cash in this price range in the Sacramento area?

2) I know I'm priced out of Down/midtown and East Sacramento. It also looks like a lot of North Sacramento is dangerous. Any ideas on neighborhoods that are reasonably safe in my price range? I have been looking at West Sacramento and some parts of Oak Park.

3) Does anybody in Sacramento have experience finding FHA properties in Sacramento using anything other than the MLS and Craigslist?

Thanks in advance for your advice!

Rotate Log in or sign up to reply
user profile avatar
  • Posts 76
  • Votes 28

Matt Slakey
Investor from Salem, OR

replied over 5 years ago

I lived in Oak Park, near McClatchy Park, for a while (coworker's made fun of me for it: white boy in the hood). It was great: I felt very safe during the day, a little less at night but not bad. My neighbors were more friendly than in the burbs. There are some parts that are better than others, for sure. I would recommend staying closer to or on minor arteries (33rd, 2nd ave, etc.). The ability for a (cop) car to speed by your house is a good thing.

Between City College and executive airport is not too bad. I haven't been around West Sac that much. When I left there were a few revitalization projects going on. I think the downtown West Sac area has potential. Some parts of Rancho Cordova are good. It's an easy commute on the light rail to downtown.

If you are working downtown, I wouldn't go much beyond there. Or a 1/2 mile from lightrail stops. I DESPISE commuting in Sac. Life was so much better when I stopped driving 30 min to visit a friend across town, go to the movies, or anything. Check out walkscore.com if you hate sitting in your car for 2 hours a day. 

I would stay out of meadowview and del paso heights and the spillover from those areas.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Team, Single Family, and Residential
  • Posts 82
  • Votes 4

Brennen Cook
from Elk Grove, California

replied over 5 years ago

Congratulations Andrew. On the job, graduation, and the bar which I am sure you'll pass. 

I live in Sac. I've lived in Elk Grove, Granite Bay, and Roseville (Not a big downtown liver). First off I would have to strongly recommend living no where near the Oak Park area. Yes there are "nicer" areas. Yes, there are good people. Like Matt said, it is the hood.

One problem you've already found is that there is very much competition in your price range. With that being said you have to do everything you can to make your offer most appealing without just throwing more money at it. You might have difficulties getting acceptance with FHA. If a owner has to choose between two identical offers, one FHA one conventional, they will go conventional every time. FHA has more requirements you have to satisfy which can cost sellers more money in repairs in comparison to FHA.

You mentioned FHA supplemented by cash. FHA is 3.5% down I believe. You can qualify for conventional for 3% at some places ( I used conventional 3% when qualifying). I think if youd have some better luck with that.

I will admit in your price range you're probably dealing with many investors with serious financing or cash.

You might want to consider renting for a period while looking to buy. If you need any help I'd be happy to assist you in any way. 

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Analyze Deals, Team, and Single Family
  • Posts 1.7K
  • Votes 754

Upen Patel
Lender from Vienna, VA

replied over 5 years ago
@Andrew Collins  Congratulations on graduating and new job. Good luck on the bar exam.

Have you looked into getting a full approved loan. This when you go through full underwriting with the address at TBD. So your loan is approved and the only outstanding thing is the property appraisal and clean title.

Contact me if I can provide more insight.

Upen Patel
Rotate Log in or sign up to reply
user profile avatar
  • Posts 16
  • Votes 7

Kelli Foley
Broker / Investor from Sacramento, California

replied over 5 years ago

Congrats Andrew!

I was born and raised in Sacramento and an investor, broker and own a boutique real estate company. I believe you can find something in your price range, in a decent neighborhood with FHA.

Consider thinking like an investor even to buy a house for your self. It may be more work, but the benefits maybe great. Talk to fsbo, other investors, etc. I will keep you in mind if I come across something that will work with FHA, right now I have one fixer, but wont go FHA even with an 203k. ( a 203k, if you aren't aware, is an FHA loan for fixers. The house gets appraised for after repair value, and moneys are held for repairs. It is time consuming processes, but something else for you to consider )

Wondering how often you have been to Sacramento and driven some of the neighborhoods? I wouldn't group all of south Sacramento or north Sacramento, nor any one zip code into good or bad. There are parts of many zip codes I would not buy in, but would in other parts of that same zip code.

What are your other life interests outside of work? Do you run, bike into water sports? Sacramento has a lot of these to offer. Nice neighborhoods I have and continue to buy, because not everyone can afford the Midtown, East Sac, downtown, are South Natomas 95833 and some of 95834, Rancho Cordova 95670, unincorporated Sacramento parts of 95821, 95825, 95864, 95841, 95842. 

Don't stop putting offers in. Be creative. Even though I am an investor, there is a lot of investor hate and many home owners would consider selling to an owner occupant rather then an investor, even with FHA - I have done it and will continue to. Many home owners don't want to leave there neighbors with a rental property. Consider writing a letter to the homeowner, especially if the owner is a homeowner and not an investor, especially if it is a home owner that has owned for a very long time.

Real estate is a relationship business. Your Agent needs to work on forming a relationship with the listing agent, selling them on you and him/her.

Good luck and welcome to Sacramento!

Rotate Log in or sign up to reply
user profile avatar
  • Posts 288
  • Votes 142

Derek Daun
Investor from Sacramento, California

replied over 5 years ago

Oak Park is a great area, I lived there (McClatchy Park) for over four years. One thing to your advantage is perceived crime vs. actual crime. A lot of people who are from Sacramento have biased opinions on places like Oak Park based on the fact that there used to be some serious problems there in the 80s. In reality, it's just a safe, and maybe safer than other downtown neighborhood. For example, a women was just pistol whipped in the Fab Forties in broad daylight this past week.
It is pocketed from a value standpoint though; feeling out the area is very important, especially in today's market as the gentrification border are constantly changing.

Going against the cash buyers is a problem though. Bid often, bid smart, bid strategically.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 224
  • Votes 129

Account Closed

replied over 5 years ago
Where are the buyers in California getting all this cash? Is it the drug trade. Because real estate there is quite overpriced to begin with the last time I checked. I went back to visit some boyhood places last year and was flabbergasted to hear someone tell me that they were outbid on a track of land for a mobile home in a place that is so much like the hood you would think you were in the Congo. The buyer paid 50,000 in cash. I'm not talking about an investor. This is not an area for revitalization. This is a little hillbilly village outside of a bigger hillbilly village in the central valley where everything was built without codes, with bars over the windows, and graffiti for curb appeal. I seriously would not give 500 bucks for the place. I would say they have something in the water out there but they don't have any of that either
Rotate Log in or sign up to reply
user profile avatar
  • Posts 333
  • Votes 131

Derek Jones
Real Estate Agent from Sacramento, CA

replied over 5 years ago

It may be hard but not impossible with that budget. You and your agent just have to be on the ball. If your lender hasn't mentioned it to you yet, look into some of the new CALHFA programs. It's basically conventional financing with downpayment assistance so those sellers who want to shy away from FHA shouldn't be turned off by it. Certain areas are more popular than other and bidding wars are common.

Try expanding your search area, look at overpriced homes that have been sitting on the market for a while.  Back in 2013 when my wife and I were buying our home we were getting outbid every single time, then we started looking at the homes overpriced for the are that were sitting on the market 30+ days and boom offer accepted. We even got it for $15k under their asking price.

I'll leave safe up to you, but in that price range look into 95817, 95670, 95825, 95864, 95821, 95823, 95815.

There are some ways of finding off market properties but from what I've found they won't qualify for fha or  priced out of your price range.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 13K
  • Votes 1.4K

Mark Nolan
Professional from Carlsbad, California

replied over 5 years ago

@Andrew Collins

Welcome to Bigger Pockets. BP is full of resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members which is my favorite part of the website.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 3.7K
  • Votes 494

Jenkins Ramon
from Milwaukee County, Wisconsin

replied over 5 years ago

Welcome and congrats on upcoming W2 opportunity

Rotate Log in or sign up to reply
  • 1
  • 2
Related Resources Buying & Selling Real Estate Discussion
What Is Underwriting? Here’s What to Expect
8 Reasons Smart Investors Get Their Real Estate License
Understanding Real Estate Commissions (And How to Negotiate Them!)
Investors: Don’t Negotiate Until You Know the Home’s Condition
Real Estate Agents: Avoid These 9 Missteps To Maintain Your Motivation and Close More Deals
Resources Read, see, and learn more!
Link Real Estate Investment Calculators
Link BiggerPockets Blog
Link Path to Purchase
Link Mortgage Loans
Link Find a Contractor
Link Real Estate Agents
Link Hard Money Lenders
Link Real Estate Listings

Top Contributors

Jay Hinrichs
Jay Hinrichs
Lake Oswego OR Summerlin, NV
9.52
Score
Tri Le
Tri Le
Cincinnati, OH
5.78
Score
Michael P.
Michael P.
Toledo, OH
4.99
Score
Jonathan Greene
Jonathan Greene
Montclair, NJ
4.6
Score
Remington Lyman
Remington Lyman
Columbus, OH
4.38
Score

Buying & Selling Real Estate Discussion Trending Discussions

  • *Buying FSBO properties*
    15 Replies
  • How is inventory in your market?
    21 Replies
  • Who should be responsible for the Buyer's agent fee?
    8 Replies
  • Pls help this newbie with rehab computation & negotiation
    6 Replies
  • FHA or Coventional offer
    6 Replies
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.