Elk Grove vs Folsom?

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Elk Grove vs Folsom?

Rahul Samskruthyayan
Fremont, CA · Member since 2020 · 22 posts · 3 votes

Hi BP,

I joined recently and this place is so helpful. I’m a newbie to real estate investing and currently living in Fremont,CA. Because of COVID, I’m working from home for the past year, and most possibly I would be doing the same this year as well. My intention is to move to the new house and stay there until COVID ends while renting out Fremont property, and return back to Fremont property by renting out the new property. So I decided to look out the outskirts of the Bay Area and started exploring Tracy, Brentwood, etc. Recently I came to know Elk Grove and visited a few weeks back and felt that it has good proximity to commuting to the Bay Area because of ACE expansion and future High-speed rail project. Eventually, I started exploring Folsom because of the school district and visited the Folsom ranch and neighborhood. Even though I liked Folsom, price and distance (to Bay Area) are pulling me back.

Can you pls advise which location to choose considering renting proximity and commute (1-2 times/week) to BA?

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Joe Bertolino
Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
5y
Originally posted by @Rahul Samskruthyayan:

Is Folsom considered as a place for having a stopover for Lake Tahoe ?

 Yes,   Folsom and El Dorado Hills are common stops on the way to Tahoe.  I am biased as I live in the area but Folsom is much nicer than Elk Grove.  Both have nice older downtowns and newer tract homes but the schools and food options in Folsom are better along with access to Folsom Lake and The American River bike trail.  Crime is much lower.   Elk Grove connects to South Sac and some of the crime spills over.  It is not dangerous by any means but there is significantly more action there than in Folsom.  Folsom was the 8th safest city in California out of 228 cities ranked in 2019.  

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  • Kyle Murphy
    Real Estate Investor · Sacramento · Member since 2015 · 20 posts · 4 votes
    5y

    Are you looking for a suburb of the Sacramento area? What is important to you / what are you looking for on this purchase? Good schools / safe neighborhood / target price point / up and coming or more stable? 

    0Reply
  • Jason Rhodewalt
    Investor · Sacramento, CA · Member since 2020 · 105 posts · 48 votes
    5y

    I know some people who live in Folsom and commute to the BA. Folsom is expensive but it is really nice with great schools. For renting you may be better off in Elk Grove (I don't know that market as well) from a pure CF perspective but if it's a question of appreciation and amenities I think Folsom probably wins

    2Reply
  • Rahul Samskruthyayan
    OP
    Fremont, CA · Member since 2020 · 22 posts · 3 votes
    5y

    Thank you for your response @Jason Rhodewalt. What are the means of commute? Driving or anything else? I know Folsom schools are great. But how is the school district & jobs in EG relatively? 

    0Reply
  • Jason Rhodewalt
    Investor · Sacramento, CA · Member since 2020 · 105 posts · 48 votes
    5y

    @Rahul Samskruthyayan the commute is probably longer for Folsom. I hear some good things about Elk Grove schools but I don’t know them as well as Folsom.

    1Reply
  • Rahul Samskruthyayan
    OP
    Fremont, CA · Member since 2020 · 22 posts · 3 votes
    5y
    • Some of my considerations are
      should be independent of BA/Tech industry economy.
    • Good schools and safe neighborhood for rentability/house-hacking
    • Steady growth for dollar-cost averaging 
    • Future scope for us to live in case if remote working becomes long-term
    0Reply
  • Jason Rhodewalt
    Investor · Sacramento, CA · Member since 2020 · 105 posts · 48 votes
    5y

    Based on those criteria I think you’d be in a good spot in either location. Good luck!

    0Reply
  • Kyle Murphy
    Real Estate Investor · Sacramento · Member since 2015 · 20 posts · 4 votes
    5y

    If those are the only two areas you're considering, I'd say Folsom is nicer than Elk Grove, and probably has better schools, but Elk Grove is lower price point and increasing quickly. One thing you should know about Elk Grove is the lack of good dining options. Almost all mediocre chain restaurants. I can't speak to Folsom dining / quality of life, but would guess it beats EG. 

    0Reply
  • DJ DawsonBusiness Member
    Real Estate Agent · Sacramento, CA · Member since 2015 · 394 posts · 259 votes
    5y

    Being local here in Sac but having family in the Bay Area the proximity to the east bay is really important to me. Natomas and EG are both great places to start with room to expand and add appreciation for you. I would also consider west sac (where I live) if you'll be going to the bay a lot it is very nice and has price points for almost any buyer. I also like west sac due to the proximity to downtown! I legit take my bike to the Kings games so I love that aspect of it too.

    Folsom drive can be a nightmare during traffic times, EG is rough too but I think Folsom is much more of a trek and you have to go through ALLLLL of sac before you even get to the causeway. Folsom a little overrated in my opinion based on the price vs everything it offers

    let me know if I can be of any help as an investor and agent here in Sac! 

    1Reply
  • Rahul Samskruthyayan
    OP
    Fremont, CA · Member since 2020 · 22 posts · 3 votes
    5y

    @DJ Dawsonundefined

    Thank you for your valuable inputs, esp. commute perspective. I never looked at west sac so far. I Will start looking into it.

    0Reply
  • Jason Rhodewalt
    Investor · Sacramento, CA · Member since 2020 · 105 posts · 48 votes
    5y

    I can vouch for Folsom dining... it’s good. Also they have a decent night life with a small bar scene 

    0Reply
  • Rahul Samskruthyayan
    OP
    Fremont, CA · Member since 2020 · 22 posts · 3 votes
    5y

    Is Folsom considered as a place for having a stopover for Lake Tahoe ?

    0Reply
  • Joe Bertolino
    Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Rahul Samskruthyayan:

    Is Folsom considered as a place for having a stopover for Lake Tahoe ?

     Yes,   Folsom and El Dorado Hills are common stops on the way to Tahoe.  I am biased as I live in the area but Folsom is much nicer than Elk Grove.  Both have nice older downtowns and newer tract homes but the schools and food options in Folsom are better along with access to Folsom Lake and The American River bike trail.  Crime is much lower.   Elk Grove connects to South Sac and some of the crime spills over.  It is not dangerous by any means but there is significantly more action there than in Folsom.  Folsom was the 8th safest city in California out of 228 cities ranked in 2019.  

    4Reply
  • Kevin Reinell
    Rental Property Investor · Sacramento, CA · Member since 2018 · 80 posts · 31 votes
    5y

    Agree with all comments above, I work in Folsom and also spend time in Elk Grove. Elk Grove is probably better for commute, however Folsom is has seen really great appreciation due to industry and schools there. Elk Grove also has some decent schools, and may be more primed for growth with the development plans discussed here. I live in West Sacramento, I own a duplex here and bought specifically due to commuter aspect with easy I80 access. I would consider West Sac as well if commute is a factor. 

    2Reply
  • Rahul Samskruthyayan
    OP
    Fremont, CA · Member since 2020 · 22 posts · 3 votes
    5y

    Thank you @Kevin Reinell

    Based on what industry is Folsom appreciating?

    0Reply
  • Kevin Reinell
    Rental Property Investor · Sacramento, CA · Member since 2018 · 80 posts · 31 votes
    5y

    Folsom has a few key large employers: Intel, Micron, Blue Cross etc. that keep very talented professionals in the area raising families. These employers will continue to attract young professionals and other top talent to the area. Intel has a large campus of 6,000+ people that help boost the RE market in the area. If you are looking to invest to play an equity appreciation game, then Folsom may be a safe place to do that, expensive market to buy into though. 

    2Reply
  • Kevin Reinell
    Rental Property Investor · Sacramento, CA · Member since 2018 · 80 posts · 31 votes
    5y

    I think the surrounding areas to Sac that are growing are cheaper are Natomas, West Sac, Elk Grove and are all areas that will continue to see influx from people fleeing the Bay Area

    1Reply
  • Somit Joe
    Investor · Member since 2017 · 4 posts · 5 votes
    5y

    I am a bay area transplant who is now working remotely from Sac area. My perspective,  is to not mix rental return investment from personal use  property. My 2 experiences to share are:

    1. I started first by looking for houses for myself in Folsom but ended up in Eldorado hills as it offered more value for dollars. In last 1 year EDH seems to have appreciated more than Folsom. Overall both Folsom/El Dorado hills provide great access to nature, good schools and overall quality of life

    2. I own rental investments in Natomas and feel they are best suited for maximizing returns

    So no one size fits all and take ur pick based on ur priority

    Hope this helps to make a decision

    2Reply
  • Rahul Samskruthyayan
    OP
    Fremont, CA · Member since 2020 · 22 posts · 3 votes
    5y

    @Somit Joe

    This helps. Thank you !!

    0Reply
  • Anurag D.
    Santa Clara, CA · Member since 2018 · 44 posts · 7 votes
    5y

    Hello Rahul, Everyone,

    Thanks for initiating the discussion.

    > Assumptions: Good school district, ease of finding tenants.
    My Goal: Rent + possible retirement.
    1. Which would you have preferred among TracyHills/MountainHouse And Brentwood/Antioch?
    - I like to drive myself if I am searching for property.
      -- Drive from Brentwood to SFO (4 West) was easy, as compared to 580-West from Tracy ( ~3 Mountain ranges)
      -- Both Tracy and Brentwood probably are equally accessible to Stockton.

    2. What are the reasons to consider Elk Grove over Tracy(/Hills)?
    - Which property would appreciate more in long-run.

    > Did you consider Roseville/Rocklin?

    - I loved the new constructions in Elk Grove (large size), and Rancho Cordova, but good schools were probably a long drive away.
    - What I heard..- are there reasons to live somewhere else if you would be coming to Roseville for schools?
    - Anywhere you live in SAC metro, it's likely that you would visit Roseville once a week (Shopping malls/restaurants etc..)..So why not live in Roseville.
    - It’s easier to rent in Roseville (?) based on decades of good reputation.. (based on price range I was searching for).
    (For my price range, I was getting 2B/2B SFH in ElDorado/Folsom area, but 3-4 Bedroom SFH in Roseville.)

    ..would be happy to hear counter or better arguments on above.

    Best…

    A

    1Reply
  • Rahul Samskruthyayan
    OP
    Fremont, CA · Member since 2020 · 22 posts · 3 votes
    5y

    Hi @Anurag D.@Anurag D.

    Here's my take. If you want to commute to SF, then the Brentwood area is better. Tracy/MH is better for the south bay commute.

    I feel EG would appreciate steadily than Tracy because it depends on Sac economy whereas Tracy is overflown population from BA.

    I haven't looked at Roseville/Rocklin. Willing to hear more from other folks.

    0Reply
  • Brian Fitzgerald
    Property Manager · California Washington North Carolina South Carolina, Georgia and Alabama · Member since 2020 · 71 posts · 27 votes
    5y

    Hello Rahul, 

    As a property manager that services the entire Sacramento region each area has seen growth in appreciation values and rental values. Regular BA commuters are typically more in the Natomas, Roseville, Elk Grove, West Sacramento and Pocket. This is not to say that people are not moving to Folsom, El Dorado Hills, Rancho Cordova, Cameron Park and commuting but most of these individuals primarily will be working from home or locally. Should they have to go to the BA they only go once a month so the distance is not as large of a concern. 

    Hope this provided you some insight and feel free to reach out should you have any further questions that I can assist you with.

    Best regards,

    1Reply
  • Rahul Samskruthyayan
    OP
    Fremont, CA · Member since 2020 · 22 posts · 3 votes
    5y

    @Brian Fitzgerald thank you fir your valuable inputs !

    0Reply
  • Joe Bertolino
    Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Rahul Samskruthyayan:

    Thank you @Kevin Reinell

    Based on what industry is Folsom appreciating?

     As part of Folsom ranch there is a 51 acre commercial section that will include a UC Davis Med Center teaching hospital.  There is another large section that is set aside for a yet to be named West Coast corporate headquarters.   Estimated employment between the two is over 10,000.  Every time somebody builds office condo's they are sold out immediately as owners are moving their businesses in other parts of Sacramento closer to their home.   Legal, Insurance, etc.   

    1Reply
  • Jeremy Brown
    Rental Property Investor · Folsom, CA · Member since 2016 · 140 posts · 70 votes
    5y

    You mentioned house hacking. One approach you can take with that is to buy a house near the Folsom Intel campus and rent out rooms. You’ll have access to a large group of tech employees that way. There’s some new construction almost right across the street and a fair amount of more mature neighborhoods very close by. 

    1Reply
  • Rahul Samskruthyayan
    OP
    Fremont, CA · Member since 2020 · 22 posts · 3 votes
    5y

    Thank you @Jeremy Brown and @Joe Bertolino

    That means Folsom economy is not fully dependent on tech industry. Correct me if I’m wrong.

    0Reply
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