Anyone doing STR MTR in Sacramento or Elk Grove area?
Can you please share the recent experience?
Is it still good to buy in the area for STR MTR, or too late? I heard many Bay people are back to office and turn their houses into STR
It's really saturated in Sacramento for STR's. I have a friend that turned one side of his duplex into an STR and he is struggling - and it's only a one bedroom, which in most cases should rent all the time.
I have a mid term rental (2 bed 1 bath) its constantly rented out and getting a ton of interest throughout the week, getting about 2900 a month for rent on it (Hollywood park near sac city college)
I would get on platforms and look at the area. See how many other listings are in the area, are they doing good? Are they booked? What’s their ADR?
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My daughter-in-law is a travel nurse primarily working in Sacramento area hospitals from Davis to Folsom to Sac to Woodland. Pretty much all of the hospitals in the area hire travelers so there is demand. However, there's also a lot of inventory as others have said. Sacramento in general is tough if you're buying at today's rates because it's one of those markets that heats up easily and then has fairly dramatic cool downs. Plus, there has been a ton of new building throughout that area. Depending on your property, you might look for higher end travelers like government sector travelers in and around the Capital, insurance placements, corporate travel or even academics.
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Quote from @Alice Chen:
Can you please share the recent experience?
Is it still good to buy in the area for STR MTR, or too late? I heard many Bay people are back to office and turn their houses into STR
Hey Alice,
I have a MTR and while vacancies remain low, we have seen a slight reduction in rents due to oversaturation. Still very profitable. Location, location, location. Still working with investors on finding MTR's, but just make sure to be conservative with your numbers. Let me know if you'd ever want to chat over the phone. Be happy to help.
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Real Estate Agent California (#02194482)
- Scoville Realty & Investments LLC
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I manage over 100 STR properties and I'm a broker here in Sacramento. I own 6 STR properties here as well and manage many for my clients.
The market is HOT! Quality is now more important than ever, but occupancy and rates are fairly steady compared to other markets. I'd be happy to help! Wishstr.com