San Francisco / Sacramento · Member since 2018 · 5 posts · 1 vote
I am looking into buying rental property in Sacramento. I have been looking at condos in the 150-220 range. The math works out that the renter will cover the mortgage, interest, HOA, taxes and insurance. However, I won't be making enough to cover repairs and time when it is potentially vacant.
I live in San Francisco. Here, there is never a problem renting. I don't know sacramento well enough to know how competitive the rental market is. I know there has been a roughly 8% increase in rent over the past year or so. If I could raise rent at least 5%, it would work out for me. But can I do that?
I am also concerned about impending rent control. If I lock in a rate low now, it feels like I will be losing money over the long haul if I get a tenants that stays.
Any advice on buying in Sacramento would be great.
Hi Katherine Ming. Sacramento rental market is hot. Lines of qualified renters to choose from paying top dollar. I just secured leases for 5 units, and currently in the process of renting out another 11. Market is so good, I get excited when I get a 30 day notice from a tenant. I know I’ll have it filled by qualified young professional (probably from Bay Area ;) before old tenant is out, and bump the rent up $50-$100/mnth.
I wouldn’t be concerned about rent control. Only long term potential of that would probably only effect downtown/midtown core.
Rental market is hot and my clients don't have a problem finding new renters. Rent control isn't here yet and if it does make it on a future ballet you'll have some time still. Only thing I see as a possible concern would be getting a condo that isn't requiring it to be owner occupied in a good area.