Investing in Sacramento County!

3 Replies

Hey guys,

I am about to purchase my first investment property here in California. It is 2 separate units on a 0.5 acre lot (Which is pretty big) in Sacramento County. Main house is a 2/1 with tenant paying $1250 a month (Still paying during COVID). 2nd unit is a 1/1 that could rent for $850 minimum. Also this property has room to add an additional 1 or 2 units on the property to make it a triplex or duplex. So major Value add. 

My only concern is if this is the proper time to buy? Is the price of real estate going to crash? I feel like there is some uncertainty in the market with buyers and that could be a good negotiation tactic. Also, is there anyone that does developer work or ADU's / Modular Homes for the additional units I can put on the property. Any Advice would help!

I wish I knew what the market was going to do. That said, if it looks like a good deal, I say go for it.

Two Bay Area ADU Companies to check out are:

Abodu.com

Prefabadu.com

Agree with Brian that nobody knows what the market will do. A benefit to buying now is that interest rates are low and there is high rental demand in Sacramento. It also sounds like you found a property that has a lot of potential. Unless you are planning to only hold the property for a short time, it shouldn't matter which way the market goes.

@Douglas Wright just view the investment for what it is , when you bank on appreciation you'll be stressed out either way. If the numbers work the numbers work. Make sure you review some of the stuff on BP on running your numbers for a rental and double verify everything and if its good its GOOD!

Best of luck