1% rule in Stockton ca?!?

17 Replies

I was chatting with a colleague about the process I use to purchase properties and I was wondering with the market rising does anyone still use the 1% rule in Stockton CA or is that hard to achieve. Thanks in advance 🙏🏾

Edmondo, we've acquired a number of MFRs this past year in Stockton and the 1% rule is pretty difficult to find in this market cycle, even in Stockton. If you want to chat more about the area, let me know. 

so happy you posted this, i am a novice I have 2 properties 1 in the weston Ranch area that barely seem to meet the rule. although the property was purchased at a great price (185k ) i have to many rental properties in the area with lower rents. im anxiously wanting another deal in stockton but i need to figure out how to make the numbers work

I am looking for investment properties that meet 1% rule in Stockton area. I could find one or two in Fresno CA but not in Stockton. What is the average CAP rate in Stockton, Modesto, Sacramento areas? Any thoughts on Fresno?

I am coming up with the same exact results and have also migrated my search to Fresno where I am finding better luck on meeting the 1% rule. You’d have to reach out to a good local realtor but most of the research that I’ve done has resulted in cap rates of 7-8 currently.

there are a few deals in stockton that meet the 1% rule but you really have to search and be networked with brokers.  Picked up a 16 unit in stockton recently that does better than 1% and have a few on my radar that i'm analyizing.

As for cap rates, around 6% or more with GRM's under 11. Hard to find, yes, but be patient and deals are there.

@Edmondo Morgan Jr

Sure, I'll send you a message.  It's slightly north of downtown, near hospitals and school so a pretty decent location.  Alot of MF properties are changing hands around there so new money is coming in and the dynamics seems to be shifting abit towards the positive.