Considering buy and hold in Sacramento

[Andy Paul]

Hi Bigger Pockets team, 

I have been a member here for a few years, but I am starting to kick things into next gear and looking to buy my first home by the end of this year. My fiance and I are looking at buying our first in a home in Sacramento for around $500,000. Our goal is to live in the home for about two years and then go buy our next place and rent out our first home. Ideally what we are looking for is a place that will be able to rent out easily to help pay down the mortgage and will appreciate over time so that we can build equity quickly to help support our future real estate deals. 

Does anyone currently own rentals in the Sacramento area that could tell me a little bit about the rental market there is like and what areas I should be considering?

[Scott Scoville]

Hey Andy,

Congrat's on starting your journey in real estate. Live in flips are a great strategy. Rents in Sacramento remain high, even with home prices dropping. I have a rental portfolio in Sacramento, and also work with investors in finding properties as well. I would recommend looking at Class A or B neighborhoods, close to hospitals or the downtown/midtown areas. Rents are high, and SFH rentals are hard to come by. Find a property with some value add, and make improvements that make sense for your future rental. I'd be happy to jump on a call and discuss further. Best of luck.