Buy & Hold in Sacramento Seeking Zip Code Recommendation

6 Replies

We are trying to find a buy and hold property (duplex) in Sacramento, CA for 1031 exchange.  Any zip code recommendations for areas that have solid returns?  Areas to avoid?

We are 2 hours away from Sacramento.  Would want to see some houses in the next few weeks when visit there.

Thanks in advance!

Hello Elise, the zip code of 95608 Carmichael has a few:
MLS #18013184
$340k Stated Rents of $1,095 & $990

MLS #18011733
$400k Stated Rents of $1,150 & $1,100

Properties seem to still be selling fast when they are priced correctly.
For example:
MLS #18017621
$352k Stated Rents of $1,100 & $750
This home had an offer submission deadline and a considerable number of offers according to the MLS.

Your best position is to have an active MLS feed sending properties to you along with an agent that knows the areas where you are looking to invest. Neighborhoods in the Sacramento region can vary greatly for a similar investment price and similar rent. Finding an area that you feel matches your preference for risk is important.

Wes’ post that you linked to Kyle is very helpful.

Also, the Crime and Place app will really help down to a street level.

Thanks everyone for your helpful inputs!

You should have some luck finding "okay" duplexes under 400k in the Arden area (95825) and also South Sacramento (95823 and 95828) just before you get to Elk Grove. While these areas can include B-D rated neighborhoods keep in mind that there's still a need for housing so vacancy shouldn't be an issue just proceed with caution when selecting your tenants. 

Parents with school aged children often want their kids attending a school within the Elk Grove Unified School District which is located very close to some neighborhoods in South Sac sometimes even across or down the street although their physical address may still show Sacramento, 95823/28 instead of Elk Grove, 95624/etc.

Feel free to send a message if you have any questions!

@Elise Chen you should into placer county duplexes  to fourplexes also. I found some in old Roseville that have better numbers than many of the Sacramento county properties . You can message me anytime you have questions about placer county. 

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