Investing in Folsom vs Roseville vs Rocklin

11 Replies

Hello all.. I am planning to buy rental property in Folsom ranch. I went there yesterday and saw couple of homes (kb homes, lennar, tripointe near to future dignity health). 3 bed and 2 bath approximately1638 sq ft around 600k. With this price there is no +ve cash flow (20% down payment and 3k rental per month). Since these homes are near to Intel and close proximity of dignity health center which will open in 2023 (hopefully will have good demand for rental). My goal property appreciation., is it good idea to buy it in Folsom? Or better to invest in Rocklin/Roseville/elk elk Grove?. I am already working with realtor and looking for others suggestions. Thanks in advance.

Buying a rental in Folsom is good in the sense that it would be considered an A class neighborhood so you should have a quality tenant who pays consistently and keeps the place fairly clean. However, the financials of it will never pencil out as something a career investor would take on because you’ll be significantly cash flow negative. An appreciation only strategy is a bit risky with the current high inflation and likely downturn ahead. If you have a 10+ year hold plan then you’ll likely be ok but you’ll be shelling out cash every month to meet the mortgage payment in the meantime. Roseville, Rocklin and Elk Grove would be the same. With today’s prices especially in CA, it’s very difficult to find something that would cash flow. You have to be very creative.

I think you'd do well with appreciation in any of those areas. In today's values, I have about a $150k appreciation in my Roseville rental purchased two years ago. I have about $100k equity in my Rocklin rental purchased a year ago.

We considered Folsom also but didn't want to bank on just Intel. Roseville also has some big employers. We also look for other things that attract families; ie schools, things to do, etc. I believe Roseville is also a tad closer to drive in to Sacramento on 80. Good luck!

@Ramki Dirisala

I think Roseville, Rocklin and Folsom are great options. I’m not as big of a fan of Elk Grove. But all three will have roughly the same appreciation and quality of tenants (assuming you are looking at similar properties).

My top choice would be Roseville. It has similar amenities to Folsom, but has the best utilities. You’re not likely to have rolling blackouts with Roseville Electric.

Roseville and Placer County also tend to be more business and landlord friendly than Sac County areas too.

This is all based on me being a realtor out of Roseville, a former policed officer in Roseville (medically retired: ankle surgeries) and my wife worked for the City of Roseville for about ten years and now works for Placer County. So I do tend to look at how the municipalities operate more than most.

There's a shortage of rentals, no issues renting to qualified tenants. I did find however when I rented my last one a few months ago that there were quite a few people looking for short term rentals. They sold their home and couldn't find another one to buy or rent.

Tons of medical here. If you Google the biggest employers in the area, Kaiser is #1 and Sutter is #3. :)

Roseville is a great area. There is HP, Amazon, sutter, kaiser and many more to name. Rosevillle is growing big time. I will wait till sept 30th for the moratorium. There are chances for price adjustment and I know lot of people won’t agree with me. Ricklin is great as well and that’s where I’m from and the schools are one of the best in placer county. All the best!

I went to Roseville yesterday and saw couple of homes (near to woodcreek oaks blvd by lennar very close to retail and fiddyment Rd lennar and jmc homes). How is this area ? How far this area is to offices and schools?

I have spent a lot of time in that area over the years.  There are lots of schools all over West Roseville.  Two high schools west of Woodcreek Oaks.  Its about 6 miles to Sutter Roseville form Woodcreek/Blue Oaks Blvd.

Anything off of Fiddyment is newer and tends to be very desirable.  Great schools, lots of parks and trails, etc.  Mello-Roos is higher in Fiddyment Farm, Westpark and Westbrook (Westbrook has 60 year bonds), so I usually replicate a tax bill to make sure my numbers are accurate, when comparing it to more established areas that have lower taxes.  

Crocker Ranch (Blue Oaks/Crocker Ranch Rd) is a little more established, but just about the same in desirability.  They can also have higher Mello-Roos than some other areas as well.  

The Woodreek corridor is also a solid choice.  The Blue Oaks/Woodcreek area is brand new so you can expect the Mello-Roos to be higher than some of the "older" areas built in the 90's and early 2000's.

My wife did the Mello-Roos districts for the city for many years, so sorry if I geeked out on that a bit. ) 

Very helpful info. Most of the new developments has mello roos/hoa, some of them don't have hoa but higher mello roos. Some.of them has hoa with lower mello roos. All the new constructions on fiddyment Rd are bigger in size compared to woodcreek oaks blvd. If I want to choose one of these 2 areas, which one would be best bet?

Are you only looking at new construction? You should be able to find homes from 1500 sq ft to 3500 sq ft in both areas. Regardless, both are great areas. I would go where the number make the most sense for you. 

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