How Much Would You Pay For This Sacramento Rental?

Question

Calling all Buy & Hold Investors in the Sacramento area. I am working with a private seller and would like to get feedback on a good purchase price for a rental property. It is a 3/1 that was remodeled in 2009 right before the current owner purchased it (owner-occupied). Average rent in the area is $1,250. As a landlord you wouldn't have to due much if anything in regards to rehab upon purchase since it was updated in 2009 and the owner has maintained the house. ARV for a newly rehabbed home like this one is 190K, so this one would probably go for 175-180K on the open market to an owner occupent. Given the rent and condition what purchase price would make this an attractive addition to your portfolio?

Account Closed · Answer

a lot of info is needed to make any sort of determination.

saying that there was a "rehab" simply means it's livable in that property.

Ari Knepel · Answer

in my Area of investments in turnkey ( FL ) I would pay 55K on a 850$ rent , rehabbed and rented already making cash flow.

Chris Music · Answer

Thank you all for the feedback!

Jacob Sampson · Answer

In my area I would pay $81k for $1250 in monthly rent.  Assuming, as you said, there is no rehab needed to get it rentable.

Chris Vail · Answer

@Chris Musicwith the little information you provided, if I was to put an offer in on a 3/1 at such a small size with only one bathroom it would be in the 120k range maybe pushed to 130k depending on condition of the property.

Chris Music · Answer

I am looking for a Buyer's perspective. I am thinking of wholesaling this contract and want to know what a landlord would pay. If it's not much more than I would pay, I'll just flip it myself.

Derek Daun · Answer

From a selling standpoint, they should look to sell to an owner occupier, and should be able to get a better price.

Chris Music · Answer

Zip 95842

Sqft 912

Lot 5,227

Single car garage

Derek Daun · Answer

What is the zip code and square footage? Lot size? Is there a garage?

Chris Music · Answer

It was a flip, every thing was upgraded. Kitchen, bath, paint, floors, windows, water heater, HVAC, etc. Not looking for an exact amount, just a general idea as to what would make this a solid rental.