Seeking first multifam

[Sean Triglia]

Hi, 

I’m relocating in a few weeks to the Sacramento, CA area. Looking to connect with local real estate investment groups as I navigate buying my first multifamily property. 

[Scott Scoville]

Hey Sean,

I'm an investor and agent in Sacramento. I'm also working with quite a few BP investors in their hunt for a deal. Would love to connect and see if there's anything you need. I'll DM you with my info.

[DJ Dawson]

Hey Sean! welcome to Sac!! I host a monthly real estate investors meet up in West Sac open to new and experienced investors alike the 4th Tuesday of the month! would love to have ya! I am also a flipper and realtor in the area who has worked with a number of BP members and would love to talk about Sacramento with you as you get acquainted w the area! Best of luck on your RE journey!

[Bob Stevens]

Quote from @Sean Triglia:

Hi, 

I’m relocating in a few weeks to the Sacramento, CA area. Looking to connect with local real estate investment groups as I navigate buying my first multifamily property. 

Much much better ROI buying out of state like 1ks of people from Ca

[Dan Heuschele]

Quote from @Bob Stevens:

Quote from @Sean Triglia:

Hi, 

I’m relocating in a few weeks to the Sacramento, CA area. Looking to connect with local real estate investment groups as I navigate buying my first multifamily property. 

Much much better ROI buying out of state like 1ks of people from Ca

Can you reference a legit source (Core logic, case Shiller, neighborhoodScout, etc) that shows Cleveland has provided a better ROI for residential RE investing than Sacramento for any time span of 10 years or longer?

Neighborhoodscout shows Sacramento 10/10 in appreciation for this century and Cleveland a 1/10. The average appreciation since the turn over the century for Sacramento is over $1,400/month.  The average appreciation for Cleveland since the turn of century is negative in inflation adjusted dollars.  

I invite you to cite a source for your comment for any duration of 10 years or longer, but the source I cited (NeighborhoodScout) indicates Sacramento has crushed Cleveland for residential return since the start of this century.  

I recognize your livelihood is in part from OOS investors that invest in your market.  However, referencing falsehoods should be called out.  If you wanted to indicate the great initial cash flow of Cleveland or the low cost of entry then I would not be pointing out that your statement contradicted the statistics. 

The statistics show Sacramento RE has produced better ROI than Cleveland for long holds. There is no way to know if the future will behave similar to the past for either of these RE markets.

[Bob Stevens]

Quote from @Dan Heuschele:

Quote from @Bob Stevens:

Quote from @Sean Triglia:

Hi, 

I’m relocating in a few weeks to the Sacramento, CA area. Looking to connect with local real estate investment groups as I navigate buying my first multifamily property. 

Much much better ROI buying out of state like 1ks of people from Ca

Can you reference a legit source (Core logic, case Shiller, neighborhoodScout, etc) that shows Cleveland has provided a better ROI for residential RE investing than Sacramento for any time span of 10 years or longer?

Neighborhoodscout shows Sacramento 10/10 in appreciation for this century and Cleveland a 1/10. The average appreciation since the turn over the century for Sacramento is over $1,400/month.  The average appreciation for Cleveland since the turn of century is negative in inflation adjusted dollars.  

I invite you to cite a source for your comment for any duration of 10 years or longer, but the source I cited (NeighborhoodScout) indicates Sacramento has crushed Cleveland for residential return since the start of this century.  

I recognize your livelihood is in part from OOS investors that invest in your market.  However, referencing falsehoods should be called out.  If you wanted to indicate the great initial cash flow of Cleveland or the low cost of entry then I would not be pointing out that your statement contradicted the statistics. 

The statistics show Sacramento RE has produced better ROI than Cleveland for long holds. There is no way to know if the future will behave similar to the past for either of these RE markets.

I do not sit on the internet (complete waste of time) I actually do. Heck Im sure if you look up East Cleveland you will see terrible stats and say anyone would be crazy to buy rentals there. Well that too would be 100% incorrect IF you know where to buy and what to pay. Even in EAST Cleveland MF are now going for 40- 50k per unit vs 5- 10k 10 years ago. We are trying to buy as much as we can in certain areas as we are in the " know" as to what is going on. Sitting on the internet will not tell you the facts. I know people that own 4 - 5 br in EAST Cleveland and are getting 500 a BR, and there all in price is 30k, do the math huge ROI. My biggest mistake was not keeping 50 of the 500 I flipped out there, HUGE mistake. I sold a 6 unit, 4 plex and duplex on same lot for 150k, about 7, 8 years ago, well now it will sell for about 250k. I flipped a 10 unit near UC, for under 200k, well it just sold for 525K!! SF are now selling for 100k +++_ that I flipped for 40k, again huge mistake.

 All I know is the facts. In the last 10 years or so pricing has doubled, tripled or more in most of the Cleveland markets. NET cap rates based on cash purchases were 25-30% about 7 years, 8 ago. So combine that with the as mentioned increase in pricing and the low-price points (back then) under 60k, you can understand why 100s if not thousands of investors from CA and around the world invest in the Cleveland markets. Even in today's market investors are able to purchase SF for all in about 100k with rents from 1100- 1400, with values of about 120- 130k. These numbers are impossible to get in Ca.  Falsehood, I think not. You can sit on the internet while others are actually doing, 

All the best 

[Dan Heuschele]

Quote from @Bob Stevens:

Quote from @Dan Heuschele:

Quote from @Bob Stevens:

Quote from @Sean Triglia:

Hi, 

I’m relocating in a few weeks to the Sacramento, CA area. Looking to connect with local real estate investment groups as I navigate buying my first multifamily property. 

Much much better ROI buying out of state like 1ks of people from Ca

Can you reference a legit source (Core logic, case Shiller, neighborhoodScout, etc) that shows Cleveland has provided a better ROI for residential RE investing than Sacramento for any time span of 10 years or longer?

Neighborhoodscout shows Sacramento 10/10 in appreciation for this century and Cleveland a 1/10. The average appreciation since the turn over the century for Sacramento is over $1,400/month.  The average appreciation for Cleveland since the turn of century is negative in inflation adjusted dollars.  

I invite you to cite a source for your comment for any duration of 10 years or longer, but the source I cited (NeighborhoodScout) indicates Sacramento has crushed Cleveland for residential return since the start of this century.  

I recognize your livelihood is in part from OOS investors that invest in your market.  However, referencing falsehoods should be called out.  If you wanted to indicate the great initial cash flow of Cleveland or the low cost of entry then I would not be pointing out that your statement contradicted the statistics. 

The statistics show Sacramento RE has produced better ROI than Cleveland for long holds. There is no way to know if the future will behave similar to the past for either of these RE markets.

I do not sit on the internet (complete waste of time) I actually do. Heck Im sure if you look up East Cleveland you will see terrible stats and say anyone would be crazy to buy rentals there. Well that too would be 100% incorrect IF you know where to buy and what to pay. Even in EAST Cleveland MF are now going for 40- 50k per unit vs 5- 10k 10 years ago. We are trying to buy as much as we can in certain areas as we are in the " know" as to what is going on. Sitting on the internet will not tell you the facts. I know people that own 4 - 5 br in EAST Cleveland and are getting 500 a BR, and there all in price is 30k, do the math huge ROI. My biggest mistake was not keeping 50 of the 500 I flipped out there, HUGE mistake. I sold a 6 unit, 4 plex and duplex on same lot for 150k, about 7, 8 years ago, well now it will sell for about 250k. I flipped a 10 unit near UC, for under 200k, well it just sold for 525K!! SF are now selling for 100k +++_ that I flipped for 40k, again huge mistake.

 All I know is the facts. In the last 10 years or so pricing has doubled, tripled or more in most of the Cleveland markets. NET cap rates based on cash purchases were 25-30% about 7 years, 8 ago. So combine that with the as mentioned increase in pricing and the low-price points (back then) under 60k, you can understand why 100s if not thousands of investors from CA and around the world invest in the Cleveland markets. Even in today's market investors are able to purchase SF for all in about 100k with rents from 1100- 1400, with values of about 120- 130k. These numbers are impossible to get in Ca.  Falsehood, I think not. You can sit on the internet while others are actually doing, 

All the best 

>if you look up East Cleveland you will see terrible stats and say anyone would be crazy to buy rentals there.

I recognize the stats are averages and all markets have sub-markets that out perform and sub markets that under perform those averages.  Do you believe that a market with “terrible stats” is likely to have better upside even in those sub markets that out perform those terrible stats than a market that has great stats?

>you can understand why 100s if not thousands of investors from CA and around the world invest in the Cleveland markets.

I do understand why some Ca invest in small unit count in Cleveland. It is not because they have done the research and found that the ROI in Cleveland has historically been better than the coastal Ca cities (it has not and this info is not hard to find). It is because 1) they desire and often need the initial cash flow 2) they desire the low cost of entry 3) because many have not done the research to know which market has produced the better ROI for long term hold.

I go to a fair number of local meetups. At many of the social meetups, there are many want to be RE investors (people who have not yet purchased an REI). Most of these want to be RE investors have minimal capital and markets like Cleveland they believe provides them the best opportunity to get into RE. I admit it is one way for them to get started in RE. I discuss other options and the risks of OOS investing with them, but cheap OOS is one way for these people to get started as RE investors. It is often the easy way. There are many OOS cheap properties that have good initial cash flow (especially good initial cash flow if compared to my market's poor initial cash flow). The cheap OOS cash flowing properties are fairly easy to find and there are many Midwest providers (including Bob Stevens).

[Sean Triglia]

Quote from @Noah Laker:

What's up Sean? I am a broker and property manager here in Sacramento. We have tons of opportunities here. I specialize in short-term rental and airbnb. 

What's the budget? What's the strategy? Wanna try STR? Sacramento is the best major city in California for urban STR.

 Can’t go past 4 units. 
VA buy most likely / use of up to 75% current leases toward qual

Hybrid approach might be advantageous 

-live in one , LTR 2, STR one

Depending upon performance after a year, I would rent out my personal unit accordingly 

[River Sava]

Hi Sean, 

Welcome to BP. Definitely check out meetup.com to connect with others. Also @Alli Breighner is not too far away and can offer guidance. 

[James Wise]

Quote from @Dan Heuschele:

Quote from @Bob Stevens:

Quote from @Dan Heuschele:

Quote from @Bob Stevens:

Quote from @Sean Triglia:

Hi, 

I’m relocating in a few weeks to the Sacramento, CA area. Looking to connect with local real estate investment groups as I navigate buying my first multifamily property. 

Much much better ROI buying out of state like 1ks of people from Ca

Can you reference a legit source (Core logic, case Shiller, neighborhoodScout, etc) that shows Cleveland has provided a better ROI for residential RE investing than Sacramento for any time span of 10 years or longer?

Neighborhoodscout shows Sacramento 10/10 in appreciation for this century and Cleveland a 1/10. The average appreciation since the turn over the century for Sacramento is over $1,400/month.  The average appreciation for Cleveland since the turn of century is negative in inflation adjusted dollars.  

I invite you to cite a source for your comment for any duration of 10 years or longer, but the source I cited (NeighborhoodScout) indicates Sacramento has crushed Cleveland for residential return since the start of this century.  

I recognize your livelihood is in part from OOS investors that invest in your market.  However, referencing falsehoods should be called out.  If you wanted to indicate the great initial cash flow of Cleveland or the low cost of entry then I would not be pointing out that your statement contradicted the statistics. 

The statistics show Sacramento RE has produced better ROI than Cleveland for long holds. There is no way to know if the future will behave similar to the past for either of these RE markets.

I do not sit on the internet (complete waste of time) I actually do. Heck Im sure if you look up East Cleveland you will see terrible stats and say anyone would be crazy to buy rentals there. Well that too would be 100% incorrect IF you know where to buy and what to pay. Even in EAST Cleveland MF are now going for 40- 50k per unit vs 5- 10k 10 years ago. We are trying to buy as much as we can in certain areas as we are in the " know" as to what is going on. Sitting on the internet will not tell you the facts. I know people that own 4 - 5 br in EAST Cleveland and are getting 500 a BR, and there all in price is 30k, do the math huge ROI. My biggest mistake was not keeping 50 of the 500 I flipped out there, HUGE mistake. I sold a 6 unit, 4 plex and duplex on same lot for 150k, about 7, 8 years ago, well now it will sell for about 250k. I flipped a 10 unit near UC, for under 200k, well it just sold for 525K!! SF are now selling for 100k +++_ that I flipped for 40k, again huge mistake.

 All I know is the facts. In the last 10 years or so pricing has doubled, tripled or more in most of the Cleveland markets. NET cap rates based on cash purchases were 25-30% about 7 years, 8 ago. So combine that with the as mentioned increase in pricing and the low-price points (back then) under 60k, you can understand why 100s if not thousands of investors from CA and around the world invest in the Cleveland markets. Even in today's market investors are able to purchase SF for all in about 100k with rents from 1100- 1400, with values of about 120- 130k. These numbers are impossible to get in Ca.  Falsehood, I think not. You can sit on the internet while others are actually doing, 

All the best 

>if you look up East Cleveland you will see terrible stats and say anyone would be crazy to buy rentals there.

I recognize the stats are averages and all markets have sub-markets that out perform and sub markets that under perform those averages.  Do you believe that a market with “terrible stats” is likely to have better upside even in those sub markets that out perform those terrible stats than a market that has great stats?

>you can understand why 100s if not thousands of investors from CA and around the world invest in the Cleveland markets.

I do understand why some Ca invest in small unit count in Cleveland. It is not because they have done the research and found that the ROI in Cleveland has historically been better than the coastal Ca cities (it has not and this info is not hard to find). It is because 1) they desire and often need the initial cash flow 2) they desire the low cost of entry 3) because many have not done the research to know which market has produced the better ROI for long term hold.

I go to a fair number of local meetups. At many of the social meetups, there are many want to be RE investors (people who have not yet purchased an REI). Most of these want to be RE investors have minimal capital and markets like Cleveland they believe provides them the best opportunity to get into RE. I admit it is one way for them to get started in RE. I discuss other options and the risks of OOS investing with them, but cheap OOS is one way for these people to get started as RE investors. It is often the easy way. There are many OOS cheap properties that have good initial cash flow (especially good initial cash flow if compared to my market's poor initial cash flow). The cheap OOS cash flowing properties are fairly easy to find and there are many Midwest providers (including Bob Stevens).

 Cleveland is a tricky market man. You can make money, but you can also lose money. I suggest all out of state investors look over The Ultimate Guide to Grading Cleveland Neighborhoods before spending any money here. It's a good resource as you cruise Zillow and see varying prices. Gives you an indication of why the prices range the way they do. 

[Lawrence Potts]

Hey @Sean Triglia, super glad to have you here! Do not hesitate to ask any questions you have, a lot of us love helping others out. 

I would recommend finding a local REI meetup. Networking will probably solve 90% of the missing pieces to your team.

I currently house hack a 4plex. It's a great way to get started. And going VA or FHA makes it even better with the low down payment. Here's a few suggestions for you as you build your team:

1. Always trust but verify. Interview lots of agents and mortgage brokers. Check to see who they've recently worked with and contact them. See if the agent or mortgage brokers have house hacked before!

2. Combination of LTR, MTR, and STR gives you a diversified portfolio and let's you experiment which strategy you like. Make sure you check with the city and county to see what's allowable. A county down the road from us will not let you Airbnb both units to a duplex: you have to be living in one of them. Food for thought. Always good to check with them and see for sure.

I would highly recommend speaking with @Grant Schroeder about lending on house hacks with VA, he's an expert and current house hacker himself.

[Lawrence Potts]

Try giving @Daniel Bolduc a call too. He’s an agent in the area and is house hacking a triplex right now. Very knowledgeable of the local area, in house hacking and has connections with contractors too.

[Daniel Bolduc]

 @Lawrence Potts:

Thank you for thinking of me! Would love to help in any way I can.

[Sarita Scherpereel]

Hi @Sean Triglia Welcome to the community! Glad your here. House Hacking is the best way to get start. You can begin with a lower down payment program and save up money while learning how to be a landlord from the inside! Best of luck on your journey! 

[Grant Schroeder]

Thank you for the shoutout @Lawrence Potts! @Sean Triglia glad to hop on a call this coming week to strategize if you would like. Just let me know what works best for you!

[Gordon Cuffe]

@Sean TrigliaThere is a rei meetup in Roseville on Jan 17th. I sent you a pm with the info. It is free  so it might get crowded.