Considering buy and hold in Sacramento

Sacramento, California
General Landlording & Rental Properties
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Considering buy and hold in Sacramento

Andy PaulPro Member
San Francisco, CA · Member since 2018 · 7 posts · 2 votes

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?

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Scott ScovilleBusiness Member
Real Estate Agent · Sacramento, CA · Member since 2019 · 502 posts · 276 votes
3y

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.

[email protected]415-933-2202
Scoville Realty & Investments LLC
WebsiteView Page
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  • Ranjit Sandhu
    Real Estate Broker · Rocklin, CA · Member since 2020 · 221 posts · 83 votes
    3y

    @Andy Paul Received your message on other post and I will reply there too. I would suggest buy in Roseville/Rocklin areas, one of the best in Placer county for schools and crime rate compared to south Sacramento areas. Due to high interest rate currently your mortgage will be higher than rent but once the rates go down you can re-fi. Let me know if I can be any help. I'm a real estate broker in Rocklin area and been living in Rocklin since 1996. All the best!!!

    0Reply
  • Scott ScovilleBusiness Member
    Real Estate Agent · Sacramento, CA · Member since 2019 · 502 posts · 276 votes
    3y

    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.

    [email protected]415-933-2202
    Scoville Realty & Investments LLC
    WebsiteView Page
    1Reply
  • Gordon CuffePro Member
    Investor · Roseville, CA · Member since 2009 · 1k+ posts · 587 votes
    3y

    @Andy Paul There is still a shortage of available rentals throughout the Sacramento and Placer county areas. You mentioned something about building equity quickly. You should not think that building equity quickly is feasible. It takes many years to build equity. In the 500k price range, you can buy in stable areas like Carmichael, 95826, Orangevale, Citrus Heights 95610. Some parts of Folsom. You might consider buying a duplex also so you can live in one side and rent the other side to offset your mortgage payment. If you ever have questions throughout the year, You can send me a PM

    1Reply
  • Kevin Thomas
    Member since 2023 · 11 posts · 10 votes
    3y

    Have you looked into Elk Grove? I'm currently in a similar situation as you and trying to figure out how to make the best move. 

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