Multifamily in Sacramento & surrounding areas

Multifamily in Sacramento & surrounding areas

Developer · Sacramento, CA · Member since 2016 · 464 posts · 143 votes

Last week as I was analyzing deals, I ran across an apartment complex, hit al the check boxes on my end. On sale for 2.05MM. BUT the property had 17 offers and eventually sold for 150kish over asking price. If you thought the market is slowing down, boy are you wrong. If you think it's too hot to find a deal, boy you are wrong. Lesson learned. Act fast, be thorough and trust your gut. I'm in growth mode and actively looking to add to my portfolio. Investing in apartments is not as difficult as it may seem. The seller accepted small down payment and owner financed the rest. MAN! I need to meet more owners who are looking to seller finance. ANYTHING IS POSSIBLE. Creative financing and very little down. You can invest in California and still make cash flow + benefit from appreciation. 

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Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y

Yeah the competition often presents a problem especially for newer investors.  A low price does not mean it will sell at that price; it will often sell for higher; sometimes much higher if it is a good deal.

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  • Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    8y

    Yeah the competition often presents a problem especially for newer investors.  A low price does not mean it will sell at that price; it will often sell for higher; sometimes much higher if it is a good deal.

  • Developer · Sacramento, CA · Member since 2016 · 464 posts · 143 votes
    8y

    @Aaron K. seems like that's the strategy nowadays. List low, create a bidding war.

    @David Roque thank you! Outside my area of choice but I may have some investors that are focused in that region . I'll be reaching out to you.

  • Roseville, CA · Member since 2017 · 73 posts · 24 votes
    8y

    Wow, that is pretty crazy! Do you know how many units it was? 

  • Developer · Sacramento, CA · Member since 2016 · 464 posts · 143 votes
    8y

    37

  • Rental Property Investor · San Jose, CA · Member since 2018 · 18 posts · 4 votes
    8y

    Thanks for sharing Pavan. 37 units for ~$2.2m is ~very low at $60K/door. Was this in Sacramento? Did it need much work? Could you share the rent, cashflow numbers for analysis? Did bidders know there was seller financing available? 

  • Developer · Sacramento, CA · Member since 2016 · 464 posts · 143 votes
    8y

    27 units sorry.

  • Bryan ZuetelPro Member
    Attorney · Orange County, CA · Member since 2017 · 242 posts · 99 votes
    8y

    27 units at that price is approximately $81,500 per door. If in Sacramento or a good area, I would still take that deal. Are you looking to purchase a property on your own, partners, JV, syndication, other?

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