How's the MFU market looking in Sacramento?

3 Replies

Hello fellow BP investors, 

I've been learning more about Sacramento and have a few questions for the veterans: 

- Where can I find the latest and greatest info on neighborhoods and local real estate market? e.g. crime rates, rent trends, emerging areas, construction rates...Is there a newsletter you recommend I subscribe to? Websites that are particularly useful? 

- I am planning on doing a day trip in June. How do you recommend I best invest my time there?

- Last but not least, what's considered a good NOI for a MFU in Sacramento?

Thanks in advance!

Cécile

@Cecile Poyet - there are a couple of great posts by Wes Blackwell here that describe neighborhoods very well. Generally speaking, your NOI will depend on many things, like number of units, whether you absorb utilities or tenants pay for them, etc. With recent run up in prices in Sac area, you can find low 5% caps on smaller properties like 5 to 10 units. But many are actually closer to 4% caps once you take into consideration deferred maintenance that most also accumulated. A grade neighborhoods will generally have lower cap, D neighborhoods will have something closer to 6%

That makes sense. Thank you @Avtandil G. What posts from Wes do you recommend in particular? 

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