I am looking to acquire my first property this year preferably a multi-family that I can owner occupy. I am looking for any off market deals on for multi-families or single family residences that I could possibly do a BRRRR with. If anybody has recommendations or knows any wholesalers or anyone who has a great deal on these properties in Sacramento or surrounding areas that comes across any properties please let me know. As always I am willing to add value back so if there is any way that I may be able to help others please let me know as well. All help is appreciated.
I have been wanting to build a solid relationship with an investor in sacramento as well. I can market towards your goals and help you reach them. PM me and let me know what it is you're looking for as far as property
Hi, @Jeremey McClain there will be a REI meeting today and are welcome to attend. There are several wholesellers there and other like minded individuals. Let me know if you'd like the information.
hey @Jeremey McClain I did something similar to what you're looking to do just last year. Pm me. I'd love to share more.
@Alex Rodriguez Hi Alex, thanks for the reply. I won't be able to make it tonight but would like the information for future meetings that I will be able to attend.
@Pavan Sandhu How's it going Pavan, thanks for the reply. I PM'ed you the other day. Not sure if you received it.
@Jeremey McClain I'm in Sac and we invest and wholesale. Sac market is pretty tough. How many units, cash or pre approved loan?
I've helped a lot of people just like you in Sacramento, and here are my 2 cents:
1) If you're truly looking to get the best return on investment, look to owner-occupy a fourplex. Live in one unit and rent out the other three. Most likely, you'll have the entire mortgage covered which means you'll get to live there for free! Save all that extra money you would've spent on a mortgage or on rent and save up to purchase your next property and maybe you can repeat the process in 3-5 years.
2) You could also do a duplex for something less expensive and more manageable, but you're not going to be living for free either. Look at it like you're getting a severely reduced mortgage payment (50% or so) which still leads to more savings like I described above. Essentially, you're able to control a higher value property with a lower monthly obligation.
3) Off-market deals for 2-4 unit multifamily are going to be rare. That's moreso the area of Single Family and Commercial Multifamily. Plus, with this super hot seller's market, it's way too easy for an agent to just list the property on the MLS and sell it in less than a week with multiple offers. But still, you may find some from a wholesaler.
4) Be wary of wholesalers, as they're salesmen. They do not have a "fiduciary duty" to you like a real estate agent does, meaning they don't have to do what's in your best interest. So it's kind of like a car salesman. Many are just getting started and will tell you something is a deal when it's clearly overpriced, or even try to wholesale you someone else's deal by adding their own profit on top of it. Just make sure you work with someone reputable who is selling you their own deal and not someone else's they know nothing about.
5) Ask to see the comps. And ask the person showing you WHY they're good comps. If they bumble and fumble over the explanation, they're full of crap. A good advisor should talk you OUT of more deals than they talk you into, and just make sure you get a more experienced opinion on anything you decide to offer on, whether it's another investor, a real estate agent, or the forums here on BP.
Hope this information helps! Best of luck!
Thanks for all the great information. I believe you are right in regards to investing in a fourplex as opposed to a duplex. I've seen more duplex's on the market though.
My only other concern is that the prices for fourplex's might be higher than my approval amount, which is not a deal breaker, I would just have to be more creative with the financing. It makes sense that more off market deals will be for single family residences, I agree with you there as well.
You bring up a good point about the "Fiduciary Duty" of wholesalers. I am an agent just like you so I definitely understand where you are coming from.
This market is pretty tough like you said so I'm trying to be patient and active (if that's possible). If you happen to come upon a multifamily listing I'd love to talk to you.
A fellow investor just renovated
6105 40th Street
Sacramento CA 95824
Look like a pretty good turnkey duplex to house hack for $348k.
Thanks Joe. I’ve seen that one on the market as well. My only concern with that asking price if the amount of rent I’d be able to get for the other unit in that area. Would you happen to know?
Be patient. I strongly recommend that you buy in the best neighborhood you can. There's a duplex for sale on Fay Circle as well. Needs work, but that's an opportunity for you. And you can easily get $1,700 in rent there. Long term, that upside is a no brainer.
Hey Embert, thanks for the reply. I think I met you before at one of Al’s meet ups. Can you shoot me the address so I can look into it please?
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