New to BP and Investing

9 Replies

Hi! I live in SF and can't afford anything here. I read an article of how Sacramento was becoming the next real estate boom with the new Golden 1 Sacramento King arena and how folks are moving to the area because of lower rents/housing prices. I am looking to purchase a multi-unit preferably a duplex or triplex.

Can you please advise me of a safe, thriving urban area where I can easily rent out for an affordable price?  I'm looking for properties under $600k. I appreciate any advice. Thanks!

With appreciation,

Roger

You can find duplexes in the high 200k range to low 300k in the Sacramento area. Sacramento rents increased by 10% last year and they led the nation in rent increases.  The hard part is finding a good deal because of the limited supply of properties around Sacramento. 

Hi @Roger T. I would suggest looking over this BP post that breaks down all the neighborhoods in Sac from an investing perspective.  I'm very familiar with Sac and this is probably the best public-facing breakdown that I've seen.

https://www.biggerpockets.com/forums/621/topics/444774-sacramento-neighborhood-map-and-ratings----finally

Originally posted by @Regis Garcia :

I live at little pocket and it’s a great area, a just don’t see a good are for investment right now eve though if you find a great deal ( what probably it’s gonna be really hard to happen) it’s definitely worth it! @Paige Feddersohn

I was going to post but realized this thread was over 2 years old!

 

@Chandler Miguelgorry  Sacramento still a solid investment location especially considering the other markets in California.

While I can imagine a scenario where you hit the 1% rule, you can find some decent deals, just need to dig (or have a realtor who can do some digging for ya)

There's still tons of opportunity in Sacramento. With the new soccer stadium coming in and Kaiser doing the city a major solid with homelessness funding, the next 10 years will make a lot of millionaires!

Hitting 1% in a well established, quality area in Sac is not realistic these days (maybe recession will change that later this year). A/B neighborhoods like Folsom, Curtis Park, Land Park, etc. are more like 0.25-0.5%. You may be able to get close to 1% in D+ neighborhoods like South Oak Park. Duplexes may have a bit better rates, but not by much.