New Investor in the Sacramento Area, Let's Chat!

New Investor in the Sacramento Area, Let's Chat!

Sacramento, CA · Member since 2018 · 2 posts · 1 vote

Hello BP community!

I'm originally from the UK and moved over here about 4 years ago. I'm about to hit 31 and starting to plan my way to financial freedom in 10-15 years. I have a very good credit score and a good job which pays enough for me to live in Sac while putting some money into savings.  I currently work 55-65 hours M-F with weekends off.

My plan currently is to invest in multi family properties to bring in a bit of cash flow while also building some equity in them. I would then cash out the equity to move into flipping properties to increase the amount of hard cash I have on hand which I can then re-invest into more doors. I think my ideal final exit strategy would be to consolidate all of my equity into 1-2 large MFHs which  bring in my monthly income goal.

I would love to invest close to home however i'm not sure if it would be the right move due to the high property values in the northern California area. I am looking further afield and have seen a few opportunities in Yuba City, Oroville, and other smaller Nor Cal cities. I have found some properties which would rent for 1% of the purchase price. 

I also have several family members in the St. Louis area so I feel somewhat comfortable with that area and have been looking at the possibility of out of state investments in the Midwest. If I was to move on OOS investing I would certainly plan on multiple visits to the area while building a reliable team on the ground.

I'm currently absorbing all of the information I can get my hands on, so i'm sure i'll be posting lots of questions. It's my goal to buy my first property at the start of 2019 and build from there.

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Flipper/Rehabber · Sacramento, CA · Member since 2016 · 807 posts · 815 votes
8y

@Daniel M. Welcome!

Sounds like you already have some good direction on your strategy. 

I live in midtown Sac, let me know if you'd like to get coffee sometime. I do wholesales/flips but am looking to get into multifamily soon, hopefully 2019 like you.

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  • Rental Property Investor · Las Vegas, NV · Member since 2018 · 133 posts · 171 votes
    8y

    @Daniel M. Welcome, I am from Sacramento as well and feel your pain of how expensive it is here.   I don't currently own anything in California but own two properties out of state (Las Vegas).  My plan is to continue investing there, I have a good paying job so I live as far below my means as I can to save money and keep investing.  Feel free to connect with me if you want to talk real estate sometime.

  • Rental Property Investor · Irvine, CA · Member since 2016 · 21 posts · 3 votes
    8y

    Welcome @Daniel M. I'm from Southern California and definitely feel like I'm on the same boat. It sounds like you are off to a great start as far as researching different ways of investing your savings. I personally invest out of state since the properties are cheaper and rents are proportionally higher than most (if not every) property locally. 

  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    8y

    Welcome to the community . This site is just wonderful for hands on information, advise and networking . You should also consider joining a local investment club and meet up. Happy to network and assist.

  • Flipper/Rehabber · Sacramento, CA · Member since 2016 · 807 posts · 815 votes
    8y

    @Daniel M. Welcome!

    Sounds like you already have some good direction on your strategy. 

    I live in midtown Sac, let me know if you'd like to get coffee sometime. I do wholesales/flips but am looking to get into multifamily soon, hopefully 2019 like you.

  • Real Estate Agent · Phoenix, AZ · Member since 2016 · 738 posts · 1k+ votes
    8y

    @Daniel M.

    Hey Daniel! I work A LOT with investors in the Sacramento market, and here's my advice if you're just getting started.

    Buy a 2-4 unit multifamily property (duplex, triplex, fourplex, etc). It's still considered residential, and you can live in one unit and rent out the rest of them. You could get it for as little 3.5% down with FHA financing, and with a fourplex you could probably cover all the expenses of the home and live there for free.

    That way, instead of paying $1,000 to $2,000 per month in rent or even towards a mortgage, your mortgage is paid for you (by the other tenants) and you can save that money to pay down debt, invest in the next property, make improvements to the home and increase the value and rent, etc.

    That could get you in the real estate investing game AND cover your living expenses, despite California's higher prices.

  • Nic WilliamsPro Member
    Real Estate Agent · Sacramento, CA · Member since 2015 · 24 posts · 8 votes
    8y

    Welcome to BP and real estate investing @Daniel M.  I agree with what @Wes Blackwell had to say about "house hacking" which is buying a duplex, triplex, or fourplex and living in one unit while renting out the others.  From what you described about your goals and current job situation, this could be a great way for you to get started with investing, assuming your price point aligns with where you'd like to live and buy.  In addition, with your busy work schedule, you may be able to get multiple units without a whole lot more effort than buying a single family home!

    You mentioned Yuba City in addition to Sacramento.  I'm originally from Yuba City and my wife and I have owned several rental properties there, and we still own 1.  If you'd ever like to discuss that area, please feel free to reach out to me.  Best of luck!  

  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    8y

    Welcome to BiggerPockets Daniel!

  • DJ DawsonBusiness Member
    Real Estate Agent · Sacramento, CA · Member since 2015 · 394 posts · 259 votes
    8y
    @Daniel M. Welcome to BP Daniel!!!
  • Sergey TkachevPro Member
    Investor, Agent, CPA · West Sacramento, CA · Member since 2009 · 690 posts · 262 votes
    8y

    @Daniel M., welcome to BP!  Check out the local meetups in Sacramento area as well if you want to network locally

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