Sacramento multi-family market perspective: What is your opinion?

8 Replies

Hello Northern California Investors,

I own a couple properties in Sacramento. One fourplex in mid-town, and a duplex in South Land Park. As I survey the prices of rental properties in Sacramento, I am cautious because I see prices rising so quickly, and the financials I run on property deals usually do not give a return of more than 2-4% if all goes well. 

Is anyone on the BP community actively investing or managing Sacramento properties that can give their insight to this?

Thanks in advance for your replies!

Taylor

I'm curious to hear how the sacramento market is doing as well. I'll stay tuned. 

David,

Do you have an interest in getting into the Sacramento market?

Originally posted by @Taylor McClung :

".... the financials I run on property deals usually do not give a return of more than 2-4% if all goes well. "

 Taylor, what specifically do you mean by 2-4%?  do you mean cap rate, % or rent to purchase price (as in the 2% rule), etc?

Sergey,

I'm referring to Cap rate.

@Taylor McClung  I do have an interest in the SAC market because it is the closest "big" city to me. Someday I may look to invest there as well. 

Taylor, 

Gotcha, that was my assumption, just wanted to be sure :)

@Al Williamson , vacancy rates are very low for where my properties are in Mid-town Sacramento. We usually re-rent our single bedroom apartments, on average, within three days. Sellers are asking premium prices too! It seems so unaffordable compared to when I first bought in 2012.