Sacramento Duplex- RTP .69%

[Robert Johnson]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Sacramento.

Purchase price: $415,000
Cash invested: $83,000

Duplex in the city of Roseville (Sacramento). One long term tenant paying below market rent, and one new tenant paying slightly above market rate. 5 year annualized return 17.78% and Cash on Cash return is 2.12%
Purchase cap rate was 4.91%. A recent comp as of November 2021 sold for $505,000.

What made you interested in investing in this type of deal?

Sacramento is one of the hottest markets in the country, and according to CCIM, has been a market with one of the lowest vacancy rates a good cap rates. Renters and would be homeowners are priced out of Oakland, San Francisco and are relocating to Sacramento. I love investing in multi unit properties.

How did you find this deal and how did you negotiate it?

I found the deal off market, I brokered the transaction representing both sides, the seller would either list on the open market and list for $430,000, or sell off market to me for $415,000.

How did you finance this deal?

25% down conventional loan purchased as an investment.

How did you add value to the deal?

Upon one of the tenants moving out, my wife and I put in vinyl wood tile flooring in the living room, cleaned the unit, did some cosmetic repairs, added a washer and dryer, and rented it out for $1684 per month.

What was the outcome?

Market rent for the rehabbed unit.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I brokered the deal and purchased myself.