New REI looking at Sacramento....

10 Replies

Hi everyone. I’m originally from Sacramento and my family is still there. In 5-8 years I’d love to be living there again with a handful of rentals under my belt. I’m ready to start ASAP and would welcome any advice from anyone in the area that has some rentals. My brother is a GC so I should have some decent connections for repair and maintenance. I have 40k at the moment and zero debt. 

@Travis Henderson I almost bought in Sacramento a few months ago, as I currently live in Sunnyvale, CA. However, We have decided to RE invest in other landlord friendlier states like Texas. California is not very landlord friendly and the market in very cyclical unlike other parts of the US. My wife manages a several hundred unit multi-family here in Silcon Valley, and it’s unreal dealing with the demands of tenants and the rights they have over the landlord. It can be a huge hassle to deal with, but there is profit to be made if you do it right. Sounds like you have some great connections there in Sac, which could be good for you. Just be aware of more liabilties and taxes here in CA. I know a lot of people in the Bay Area that are moving out there. Which could be great for the Sacramento area. Good luck with your endeavors friend, and thanks for posting on BP! Let’s get financially free!

Thanks @Jess White . I’ll definitely study the laws for CA regarding renting. I do see huge upside for the area with commuters from the Bay Area. More and more people are able to work from home and only have to commute into their job a few times a month. Making San Fran money and living in Sacramento is a pretty sweet deal. Thanks for the reply, and good luck on your RE journey.

Looking at your available funds of $40k ($200k purchase price) that will get you a single family home in a C-D neighborhood. Or a condo in a B-C neighborhood.

Yes @Derek Jones I agree that doesn’t get me much at the moment. But I’m saving at a pretty good rate now and there are possibly some other funds available for a slightly bigger deal. I’d prefer not to be in the C-D type neighborhoods right out of the gate. Especially not living local right now.

Look at growth and ingress/egress of people. Texas makes the most sense these days to look for investments +/-.

I do love the Sacramento area though!