Updated over 4 years ago on . Most recent reply
Looking to connect with others in the Sacramento area
Hello everyone, I am just getting started as an investor in the Sacramento area and would love to connect with like minded people in the area. Also, I am looking to build my investing team and start my REI journey (agent, lender, etc). I am interested in small multifamily properties and plan to use FHA financing for my first deal. Any recommendations would be greatly appreciated.
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Hey Kerry, welcome to the Sac Forums. Where are you looking to invest within Sac in particular? And what is your budget?
Be aware that most of the available small multi family options on the MLS are being sold with existing tenants, most of who are paying well below market rate. Due to Covid, Sacramento demands that landlords give 120 day notice to their tenants before they have to leave. So even if you bought a four unit property, you could still be paying rent for four months waiting for one of the units to empty out. And that's IF the unit abides and clear out.
If there are empty units, then there's probably issues with the property itself. And if that's the case... will your lender allow you to offer up on it due to your FHA financing? Properties have got to be pretty turnkey for FHA backing, no handyman specials allowed.
My fiancé and I switched to a SFH strategy because of the above reasons. I'm not saying you can't find a good small multi family deal, just know it'll take a lot of research, great team members and a quick offer when you find a great opportunity. Best of luck on your search!