Closed on my first rental SFR in Sacramento area (3/2/2 fixer upper in Folsom)
Purchase price: 350k
Seller credits: 20k
Loan: 200K @ 2.625%
Just assessed @ 440k. Putting it for rent @ $2,100/mo - 8% CoC post all expenses / reserves
i think i'm done with SFRs in this area - will be looking for 4-plex next
cool. Congratulations.. how is the multifamily market in sacramento? do u see good appreciation in future?
What kind of financing did you use to get that 2.625% ?
Congratulations! I hope it works out very well for you!
@Chaithra Kumar - can't really tell what the appreciation may look like in the future here - i will defer to locals like @Wes Blackwell. I do see a lot of trade job workers moving to the outskirts like Tracy, where the properties have bubbled up in prices quite a bit recently, but I'm not sure how much migration is happening into Sacramento, which is what probably will drive appreciation going forward
@Derek Daun - the loan is 7/1 preferred portfolio with my long-time lender. but the rate was also locked in before the last round of hikes...
@Avtandil G. yes you are right, some of my colleagues have bought and moved in to Tracy. Its bubbling market. People are compromising heavily on commute. Prices are affordable there. But traffic is increasing day by day to bay area from areas like Tracy and MountainHouse. couple of Years from now my bet is , it wont be affordable for people to live and commute from there.
@Avtandil G. What is your strategy to get out of the ARM loan when it comes due? Hope the property has appreciated and sell?
@Derek Daun - planning to either refinance or if the rate is higher than the coc, pay it off the balance and releverage at some other opportunity
Where is this property located ?
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