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.
I’d love to chat more when you get a chance. What is the common cap rate you shoot for in this area? Thanks in advance.
Awesome! Hopefully we can both learn some vital information on our area.
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.
That’s great to hear Paul Choi...thanks for your input. Do you mind sharing more details about the 16 unit you purchased?
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.