Investing in Natomas Crossing?

Question

Looking for advice on Natomas Crossing investments for rental property, within the Sacramento area. Does anyone have any experience with this neighborhood? There seems to be a lot of construction going on, but I’ve heard that east of the I-5 should be avoided. Is this true?

Sean Smith · Answer

For investment purposes, the North Natomas area (95835) is a strong area for the long-term. It's close proximity to Downtown, easy access to major freeways, tons of shopping, newer builds. One thing to consider though is the amount of rental inventory is high, meaning you tend to have lots of competing comparable homes. Directly East of I-5 hugging the freeway isn't too different of a neighborhood than West of I-5. The neighborhood changes to older 70's and 80's homes once you're in traditional South Natomas (95834) and have even older 60's and 70's homes in the Northgate area (95833) pushing East. Natomas Crossing is a hybrid between North and South Natomas. We've had success filling vacancies quickly in these zip codes, even in during the holidays.

DJ Dawson · Answer

although I don't want to speculate I think Sacramento has a unique growth influx: people moving from the north to escape the fires that destroyed many cities such as Paradise, an influx of people from the bay area who are taking advantage of the work from home policies many companies changed to and ran for more affordable pastures, as well as people from the central valley looking to come up to the "big city"

No area will "stay up" once things "cool down" in theory right? I don't think Sac will see a huge correction that places that don't justify the current price points. I think Sac has "earned" its property value increase with an increase to the economy from big companies like Oracle, Apple, the MLS, etc. coming into the area, and the continued growth of new development and homes to be lived in by those corporate and state workers. Nothing is full proof but Sac is unique (to me) in the sense that it built a STRONG foundation to justify its property value growth.

Joe Bertolino · Answer

There is nothing wrong with that area.   It will only get better as the Metro Air Park ramps up.   Hopefully the zoo gets relocated the Arco Arena site.   Light rail will eventually get out to the air port.  All of the railyard amenities will help,  specifically the large Kaiser campus and MLS stadium.   Natomas is solid.

DJ Dawson · Answer

@Suneet Goraya as a local realtor here in Sac I would say personally I LOVE that area!!! The proximity to shopping on Truxel, access to the river, an ability to shoot to the Bay Area real quick if need be, the new construction over there is great for property values and there’s a ton of improvement going on in south and north natomas respectively. Helped a client purchase in Natomas a little over a year ago and she’s gained nearly 10% equity already!

Investing in Natomas Crossing?

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