Sacramento Area Investment
Hello,
I am looking for some real estate investment in Sacramento area but I am little confuse on how should I approach to find a good deal.
Yesterday I talked with my real estate agent for buying single family home in this region but after doing some calculation I figure out that I am not generating any cash flow from investment. Can anyone please explain how should i approach in real estate investment ?
Is it good idea to buy single family home or apartment ?
Most Popular Reply
It's very difficult to find a cash flowing deal in Elk Grove. In east Elk Grove (east of 99) there are only 6-7 homes that are under $300k, which even then, would be hard to purchase and get enough rent to cover all expenses plus a profit. Anything up to that price will be hard to earn a reasonable profit and you would need to put more than 20% down to make it work.
I'm very familiar with this area as I own several homes here. I also just put a home that has been a rental for many years on the market here. I placed it on MLS on Saturday and had a full-price offer under contract on Monday. There just isn't enough homes at a reasonable price for first time home buyers or those who want to live in a good school district and a safe area. They are beating out the investors as they are willing to pay a little more since it's their home, not an investment.
If you want to find an off market deal I'd start with the local meet up groups and one of the REIA meetings in town. The closest is next to Arden Fair mall and they meet on the 2nd Wednesday of the month, if I remember correctly.