Hey there BP community!
Looking to pick up some rentals in the Sacramento area. Ideally SFRs or duplexes. Any advice on which zip codes to avoid? Found a nice home located in 95824, but then heard that Florin is not the best part of town. Also, what is the best way to connect with some wholesalers in the area?
Putting in all the zip codes would take awhile. I would personally stay away from almost all of S. Sac unless you are looking for a lot of issues. Rancho Cordova and Citrus Heights are others to be watchful of. They can be good for cash flow, what little you will find in Sacramento, but those will probably be the better areas for good returns.
As for wholesalers, they will find you on here. I wouldn't be surprised if you get four or five messages on here by tomorrow morning.
Thanks so much David. Is 95824 a good one or should I stay away?
Good as in what? Good as in cash flow? Good as in safe?
Hi there Derek- Cash flow is great, but a little worried about the location. Heard this is not the best part of town.
For due diligence of certain addresses/ another BP member mentioned www.homefacts.com on a posting today. I looked it up and it looks great...just type in the address, it give crime statistics, school ratings. etc., so that should be helpful in your neighborhood analyses. Seems very useful
I am also interested in Sacramento and a broker mentioned Yuba City to me the other day.. I prefer areas that have a population of at least 500K, but I said I would consider it. I would love to get folks thoughts on this area for a multifamily purchase.
I wouldn't say totally stay away but just ensure to really do your due diligence. The further east you go in that zip code the better it is, but not by much. The property there could be in a good pocket so without knowing the exact location it is hard to say.
I have lived in Sac for more than 35 years and I can say I wouldn't buy or manage a house there. I own and manage several properties in Sac and it's not worth it to me to deal in that area.
Homefacts.com is a good website. I use it also. Another is raidsonline.com. You should definitely check the address on both but the second is a must.
It's good to hear from a Sacramento native. I'm from the Bay Area and I just started looking around in the Natomas area. What neighborhoods are the best candidates for appreciation? Let me know if there's a meet-up in your area. I'd like to network with investors and wholesalers.
I'd second what @David Hutson said, you don't necessarily have to stay away, but do your due diligence. Up until two weeks ago I never looked that far south. If I play word associaiton with 'Lemon Hill Avenue', my mind immediately comes back with 'There was a shooting last night'. But, we happened to look at a place, and I was throughly surpised at both the street and the house. The property didn't have the work/value/price ratio we like, but we did briefly consider it.
thanks everyone for your responses.
Elk Grove is great! 95758 and 95757 have great schools, great parks, relatively low crime, and a college just on the edge (Cosumnes River College) which means plenty of tenants in need of housing.
Elk Grove is great, especially with the outdoor mall coming in. There is also a plan for mall/theater on the other side of 99. It's probably a year or two out but it is being planned with the city.
I like Jake's recommendation for 95757 and 58. Those are good for rentals. 95624 is good if you can find good deals that will cash flow. It's on the east side of Elk Grove. I live in this zip code and have 5 rentals here.
How do you plan on paying for your rental? A lot of the homes I've seen in the "nicer" neighborhoods don't make financial sense for a rental if looking for cashflow if you only put 20% down.
I currently live in 95838, which some would say is not to good of a neighborhood but what I have noticed from observing the neighborhood is there are hit and miss blocks. By strawberry manors area there tends to be more home owners from what I noticed and it is pretty quiet. I am currently looking to invest in this area. Another pretty good area I am fond of is 95833.
As a reader of this post, and not a contributor. I would like to thank you all for the information, without boots on the ground you have all given me a lot of great advice to find my next investment property. THANKS GUYS!
Daven, if you or anyone in Sac would like to partner on a deal, let me know. I would be interested!
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