Building a Team - Sacramento Area or Long Distance

Sacramento, California

Building a Team - Sacramento Area or Long Distance

New to Real Estate · Member since 2023 · 9 posts · 6 votes

Hey I am Rickey Mayes. Just got my pro membership and looking to buy my first rental property. I am just 21 years old and trying to build capital and credit right now. I just do not know what market to start up in- whether my hometown in Sacramento or Midwest or Southeast states. As you all know California real estate markets are very pricy and that why I’m contemplating if it will be best to long distance invest. I am looking to househack if possible 1-4units.

I have enough for a small down payment to afford Midwest or southeast but not in my hometown of Sacramento/Northen California, for a single/small multi family house (1-4 units). I'm looking to FHA loan the property. As I said I'm new and would like to house hack my property.
I will gladly like some suggestions for starting my Real Estate Investing career. Whatever experience you all have will be greatly appreciated during my journey to real estate investing.

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Nicholas L.Pro Member

Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes

3y

-save up enough until you can house hack locally

-house hack locally

See this reply in the discussion

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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
3y
-save up enough until you can house hack locally
-house hack locally
1 Reply
Josh Bowser
Real Estate Agent · Atlanta, GA · Member since 2020 · 414 posts · 233 votes
3y
Hey Rickey!
Being that you are in a HCOL area and are pretty young I would seriously consider house hacking where you live currently if you plan on being there for a while. Reason being, you will likely not be able to generate enough cashflow in the MW or SE to make an impact on your ability to save money compared to what you can do if you house hack.
The beauty about house hacking locally as it is a hedge against your market's cost of living, AND you will more than likely pay less than what you would if you are renting.
I wouldn't be too worried about finding a multifamily property either. Try to find the nicest SFH that you can comfortably afford and rent out the extra bedrooms.
Feel free to reach out if you have any questions - I am a fellow house hacker!
0 Reply
Noah Laker
Real Estate Broker · Sacramento, CA · Member since 2021 · 516 posts · 408 votes
3y
What's up Rickey, I'm a real estate broker and investor here in Sac - recently turned 24. I started at 20 and now own 6 and manage over 100 STR and LTR rentals.

Living in a house hack right now, where we bought a duplex and renovated, owner occupy for the first year. It's an easy and reliable real estate play. Good for you starting young!
Sacramento is stable and growing. This is the only city I'm deploying my capital into, even though we do business in several metros.
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Ryan ThomsonBusiness Member
Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
3y
@Rickey Mayes
If the plan is to house hack then here are the priorities in my mind when picking a location:

1.Can you afford to live there? Can you find a job there?

2. Do you want to live there?

3. Find a house that will work to rent out bedrooms or create a separate unit.
The Assumable Guy544 Reviews
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Rickey Mayes
OP
New to Real Estate · Member since 2023 · 9 posts · 6 votes
3y
Quote from @Nicholas L.:

-save up enough until you can house hack locally
-house hack locally

Currently I have an internship with an accounting firm in Sacramento and I do not mind to stay in my hometown or either travel to another out of state office.
I guess my question is where/what market should I start out in for growing?l

0 Reply
Scott ScovilleBusiness Member
Real Estate Agent · Sacramento, CA · Member since 2019 · 497 posts · 272 votes
3y
Hey Rickey,
House hacking is one of the best ways to get into real estate. I've been investing for a while and still house hack my primary, with an ADU rental above my garage. While cash flow is more challenging to find in Sac, it depends on your strategy. Short term, mid term, or long term. I'm still buying personally and for my real estate clients in Sacramento, and getting great deals still. Would be happy to chat further if you have time.
[email protected]415-933-2202
Scoville Realty & Investments LLC
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Rickey Mayes
OP
New to Real Estate · Member since 2023 · 9 posts · 6 votes
3y
Quote from @Charlotte Torres:

I saw a cool article on house hacking here that I thought might help. Good luck!

Great thanks. I’ll check it out!
0 Reply
James Peterson
Residential Real Estate Broker · El Dorado Hills, CA · Member since 2011 · 101 posts · 40 votes
3y
Hey Ricky, good for you putting it out there and connecting with folks here on BP. Getting started can seem overwhelming. You're probably pretty excited to get the ball rolling but having a little to no nest egg or great income for when things go wrong can spell disaster. If I were you, I'd try to find a way to earn more money quickly to build your savings. Find an investor you can work with or something within Real Estate sales, wholesaling etc. This will help you learn the game, and find opportunities that may work for your situation in the near future. House hacking would be a great first acquisition, but have a plan where you want your investment business to be in 5 years and 10 years and what you need to do to get there. Share your vision with local experts and go to meetups. You'll find a mentor that can help guide you. Go get em!
-James
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