How much should a duplex sell for in Sacramento, CA?

18 Replies

Hi BP,

I'm trying to price a few duplexes in Sacramento, CA. They are all 2 beds and 1-2 baths. They are close to the Ponderosa South, Qual Gardens, Florintown, Tokay Park neighborhoods. Most were built in the early 80's or late 70's. 

Anyone have any idea on what a duplex should go for here? 

Thanks for your help

Address                       City         Year              Date    DOM/ CDOM Orig Price         List Price     Sale Price SP   % LP

7410-7412 Della Cir     Sacramento   1978       02/09/18          5/5              299,000    299,000               300,000       100.33

7326-7328 Sakura Ct     Sacramento   1977     03/05/18         0/15             299,000    299,000               297,000         99.33

7413-7415 Della Cir       Sacramento  1977       03/08/18       11/11           299,000       299,000             295,000         98.66

7434-7436 Della Cir       Sacramento   1977       01/29/18       6/6              297,000       297,000             293,000         98.65

7430 Della Cir                 Sacramento    1977      12/22/17    153/153       328,888         299,000             285,000         95.32

7808-7810 Loucreta Dr Sacramento     1963      01/03/18      53/53         265,000       258,000             225,000         87.21

7909-7911 Loucreta Dr  Sacramento     1963     12/05/17      15/15        249,000         249,000             221,500       88.96

7918 68th Ave                  Sacramento  Unknown 02/22/18       5/5          189,900        189,900              190,000     100.05

I would stay away from that area. Bad news. There’s much better places to invest in Sac

Hi @David MIller - Thanks for the feedback. Appreciate it. 

Would you call it a war zone or just a class C working area?  

@Ben Howard - What do you think of the area? Should we stay away? These would be rentals. Just wondering if this is a good are to invest in. 

I think it depends who you ask and what streets you're on. I attended James Rutter middle school and I'd classify it as a C or C- area.

Thanks, @William Wong . That's an excellent and very thorough post on the Sacramento neighborhoods. Appreciate it. 

I do live in Dallas. A portfolio of 11 duplexes located in Sacramento just came across my desk. I'm trying to determine if they are good deals or not. Based on the neighborhood map, it looks like these are all well within the Florin neighborhood. Thanks for the help. 

Todd, as a RE agent I should not provide an opinion on the area, however I often use the “Crime and Place” app when a Buyer asks about an area’s personal and/or property crime statistics. Well worth the $20 app cost IMO, especially for an out of area investor.

@Todd Keith those are all rough areas honestly. I’d stay more east of Sacramento. Pushing closer to carmichael, fair oaks, Rocklin, Roseville and Citrus Heights. All are centrally locates and insane amount of development going on. Lack of housing is keeping this market pretty hot.

@Todd Keith  

Duplexes here sell for too much. Lol. I'm kind of curious, what's a guy from Dallas doing buying duplexes in Sacramento? This ship has pretty much sailed, from the perspective of a Sac native who won't touch his own market :P

@Todd Keith I'd agree with Kory here on staying away from those areas... but the area's he's suggest (I live in one of them) are all way more expensive and probably won't cash flow.

I'm personally ok with neighborhoods with crime if rental demand is really high, but only if the local landlord tenant laws are very very landlord favorable. California loveesssss tenants lol

All good answers to your question and good questions posed back to you.  I'm newer to investing but have lived in Sac area my whole life.  I am also a realtor, though I haven't had any clients with properties in that area.  That area has steadily declined over the past few decades.  The death of Florin Mall and many other retail outlets helped the decline  I would agree it is in the neighborhood of C to C-.  I would ask why is this portfolio coming across your desk and what is motivating the seller to sell.  This can also shed some light into what's going on.  I would do some more due diligence.  It could turn out to be crappy or a great deal.  Not enough info to go on here.  

Sacramento in general is a challenging place for duplexes or most small multi family unless you are buying with cash. Those cash on cash returns are still better than keeping a bunch of money in the banks. That's changing but not totally yet. I work with a couple flipper clients and it is really hard for them to find good opportunities in the area as well. We are finding them but it has been challenging this year. They both do SFH and small multi flips.

Back to my previous comment, do your research and analyze the deal(s) thoroughly.  The numbers may be great but you need to understand the headache factor involved for you if self manage or how much it would cost you for a property manager to handle.  

Good luck!

How much do they sell for? Way too much!

Most of the ones you find won't cash flow unless you're doing some kind of value-add play. 

Also, that area isn't good. Some streets are okay but you're better off investing in your own market than deal with properties there. Florin and most of deep south sac isn't great either. 

I wholesale properties in Sac county. Although my buyers are mostly flippers maybe I can find you something that fits your criteria and isn't in the ghetto? 

Thank you, @Pratik P. I appreciate the offer. That's very kind of of you. 

Those duplexes aren't in our inventory any longer, but I'm sure there will be more in the future. 

Thanks again, 

Todd

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