6 unit 3 story 1 bed 1 bath in Midtown Sacramento
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Bonnie LowPro Member
Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votesQuote from @Jonathan Greene:
That's very limited information for someone to help you. All we know is 1/1 apartments in Sacramento. Where in Sacaramento? Have you ever done MTR? How much can you budget for furnishings and all kitchen items and creature comforts for the ones you want to MTR.
If you have a vacant 6-unit, you have great possibilities to try all strategies. I would rent 3 or 4 on long-term to get someone in and paying right away. I would test one as MTR and maybe one as STR, depending on your market.
For those of us who know Sacramento, there's actually quite a lot of information to go on in here. Midtown refers to a specific area and it's quite desirable. 1/1 MTRs would do well here IMO. What I'm not sure about is STR restrictions in this area but that's easy enough to find out. A lot of young professionals like this area so furnishings should be modern and "upper-middle end", if that makes sense. In other words, FB marketplace cast offs won't be the best fit unless you're lucky enough to come by some Pottery Barn or West Elm or brands like that. @Mike Gi be sure to check Airbnb longer stays and Furnished Finder to see what your competition's pricing and decor are like and make your properties pet friendly if you can as this is always a way to out compete the competition. Good luck!
13 Replies
- 1yJonathan GreeneBusiness MemberReal Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
That's very limited information for someone to help you. All we know is 1/1 apartments in Sacramento. Where in Sacaramento? Have you ever done MTR? How much can you budget for furnishings and all kitchen items and creature comforts for the ones you want to MTR.
If you have a vacant 6-unit, you have great possibilities to try all strategies. I would rent 3 or 4 on long-term to get someone in and paying right away. I would test one as MTR and maybe one as STR, depending on your market.
- 1yMiguel Del MazoPro MemberNortheast Georgia · Member since 2023 · 140 posts · 170 votes
There are a lot of options with a 6 unit building, and I agree without more details that it will be hard to offer any specific advice.
Using Rentometer or BP rent estimator to get an idea of the LTR rent makes a lot of sense. I'd try to fill at least a few spots to get some income coming in, and then do a rolling conversion to MTR as you have the cash to outfit a unit with everything an MTR needs. Most folks overestimate the cost to prepare a space for MTR, but you'll figure out cost-savings and improvements with every iteration. Doing 6 at once will deny yourself that improved learning curve. I don't know much about STR, so I'll hold off on any advice there.
If you do MTR, really think about who you are trying to serve. Who would come through the area as a singlet and want to stay at your place? Focus on giving them a great experience. You don't have to be all things to all avatars... Just be the best for those who would want to come to your space.
Om rrandom bit of advice: you might be able to get by with 1 high-speed internet account if you use aseries of good Wi-Fi extenders, like Eero.
Thank you all for the feedback. Since we just got the certificate of of occupancy literally two weeks ago, we are looking all options to maximize return on investment. We have decided, like you mentioned to advertise for LTR and see how things go. We have pulled permit for one STR, like air B n B and have furnished one of the units. Because this property is located in midtown historic district of Sacramento, we feel there may be market for both MTR and STR, but first thing is we will target LTR and let 3 or 4 units filled in.
When we first start developing this apartment from ground up, it was intended to flip and move on to the next project, with timing and interest rate etc.. we deiced to keep it as a cash cow for a while and see how things go.
Basically this complex is six unit three-story and all one bedroom with 700 sq. ft. each. and street parking (no parking garage) Please let me know what additional info I need to provide to better helm me on this project.
thank you
- 1yBonnie LowPro MemberLender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
Quote from @Jonathan Greene:
That's very limited information for someone to help you. All we know is 1/1 apartments in Sacramento. Where in Sacaramento? Have you ever done MTR? How much can you budget for furnishings and all kitchen items and creature comforts for the ones you want to MTR.
If you have a vacant 6-unit, you have great possibilities to try all strategies. I would rent 3 or 4 on long-term to get someone in and paying right away. I would test one as MTR and maybe one as STR, depending on your market.
For those of us who know Sacramento, there's actually quite a lot of information to go on in here. Midtown refers to a specific area and it's quite desirable. 1/1 MTRs would do well here IMO. What I'm not sure about is STR restrictions in this area but that's easy enough to find out. A lot of young professionals like this area so furnishings should be modern and "upper-middle end", if that makes sense. In other words, FB marketplace cast offs won't be the best fit unless you're lucky enough to come by some Pottery Barn or West Elm or brands like that. @Mike Gi be sure to check Airbnb longer stays and Furnished Finder to see what your competition's pricing and decor are like and make your properties pet friendly if you can as this is always a way to out compete the competition. Good luck!
- 1yMiguel Del MazoPro MemberNortheast Georgia · Member since 2023 · 140 posts · 170 votes
Knowing more about the area, it sounds like you'll have an ideal avatar of wealthy, young and trendy professionals that aren't ready for or looking for a home to own. This demographic is projected to keep increasing over time, so I would do whatever you can to hold onto this property (ie cash flow well).
Furnishing 700 sqft with PB or West Elm (you and my wife would get along great, Bonnie) won't be price-prohibitive and well worth the cost. After assembling a lot of bed frames, I prefer the Zinus brand, and I would recommend contract grade furniture.
Don't forget to sign up for pest control and both a renter's and landlord policy on your insurance.
- Real Estate Broker · Sacramento, CA · Member since 2021 · 518 posts · 408 votes1y
Hey Mike, I’m a broker and investor here in Sacramento, and I manage over 100 properties on Airbnb for investors.
The Sacramento market is very stable, we do a lot of midterm business, but we like to mix it with short term in order to maximize cash flow and limit gaps between bookings, or “orphan days.“When can we see the project? Sounds beautiful.
- 1yScott ScovilleBusiness MemberReal Estate Agent · Sacramento, CA · Member since 2019 · 502 posts · 274 votes
Quote from @Mike Gi:
We just completed 6-unit one bed one bath apartment in midtown Sacramento, CA
As we are considering doing MTR, your feedback on how to move forward with this plan is appreciated
Hey Mike, congrats! I'd be happy to jump on a call anytime. I have a few MTR's in my personal portfolio. You can get these up and running fairly quickly, and streamline the process. DM me anytime.
Hi Mike,
How's it going ? I've also been looking at midtown Sacramento for multifamily. I could be wrong but I thought I saw that Sacramento requires primary residence for the owner for STR.
Do you live in Sacramento or nearby ?Do you manager your property yourself ?
Best, Kwanza
- Hi Miguel - I’m also looking at the midtown
Quote from @Miguel Del Mazo:
Knowing more about the area, it sounds like you'll have an ideal avatar of wealthy, young and trendy professionals that aren't ready for or looking for a home to own. This demographic is projected to keep increasing over time, so I would do whatever you can to hold onto this property (ie cash flow well).
Furnishing 700 sqft with PB or West Elm (you and my wife would get along great, Bonnie) won't be price-prohibitive and well worth the cost. After assembling a lot of bed frames, I prefer the Zinus brand, and I would recommend contract grade furniture.
Don't forget to sign up for pest control and both a renter's and landlord policy on your insurance.
Sacramento area for multifamily…what is “contract grade” furniture please ? Also, can you say more about landlord vs renter’s policy on insurance ? Why both ? Can landlords require a tenant to have renter’s insurance ? Thanks, Kwanza
- Hi Noah, I’d love to hear more about your experiences with STR and MTRs in Sacramento. Do you have a calendly ?
Quote from @Noah Laker:
Hey Mike, I’m a broker and investor here in Sacramento, and I manage over 100 properties on Airbnb for investors.
The Sacramento market is very stable, we do a lot of midterm business, but we like to mix it with short term in order to maximize cash flow and limit gaps between bookings, or “orphan days.“When can we see the project? Sounds beautiful.
Kwanza - 1yMiguel Del MazoPro MemberNortheast Georgia · Member since 2023 · 140 posts · 170 votesContract grade furniture is designed to sturdier while still being fashionable. West Elm, Pottery Barn, Crate & Barrel, and Wayfair all have these options. Minoan.com can also be a resource to find it. Hotel grade furniture will often be sturdy, but less aesthetic.
Quote from @Kwanza P.:
Hi Miguel - I’m also looking at the midtownQuote from @Miguel Del Mazo:
Knowing more about the area, it sounds like you'll have an ideal avatar of wealthy, young and trendy professionals that aren't ready for or looking for a home to own. This demographic is projected to keep increasing over time, so I would do whatever you can to hold onto this property (ie cash flow well).
Furnishing 700 sqft with PB or West Elm (you and my wife would get along great, Bonnie) won't be price-prohibitive and well worth the cost. After assembling a lot of bed frames, I prefer the Zinus brand, and I would recommend contract grade furniture.
Don't forget to sign up for pest control and both a renter's and landlord policy on your insurance.
Sacramento area for multifamily…what is “contract grade” furniture please ? Also, can you say more about landlord vs renter’s policy on insurance ? Why both ? Can landlords require a tenant to have renter’s insurance ? Thanks, Kwanza
You will want to insure a number of things as an MTR landlord: your interest in the building itself (owner's policy), your contents (owner's policy), your interests if a renter or guest is hurt on-site (landlord policy), and possibly flood, wind, lost-income policies. Talking to a good insurance broker can help clarify these insurance needs. There isn't "MTR" insurance that I am aware of, so you'll want a hand in crafting it.A landlord can require a tenant to obtain an insurance policy as part of the lease. We use Avail.co to manage our leases, and it's a simple box to check to require tenants to get a policy. Since our residents are traveling "light" to a furnished property, their coverage on
ly costs a few bucks per month. Quote from @Kwanza P.:
Hi Mike,
How's it going ? I've also been looking at midtown Sacramento for multifamily. I could be wrong but I thought I saw that Sacramento requires primary residence for the owner for STR.
Do you live in Sacramento or nearby ?Do you manager your property yourself ?
Best, Kwanza
We just got our Certificate of Occupancy. I have real estate agent will consider this person to manage as well not sure yet. I am currently going through business permit
- Lender · TX · Member since 2024 · 308 posts · 197 votes1y
Congrats on finishing your 6-unit project! Midtown Sacramento is a great spot for MTRs, especially with all the nearby hospitals and downtown businesses. To get started, figure out your target tenants (like traveling professionals) and check out what similar rentals in the area are charging. Make sure the units are fully furnished with all the basics, and consider including utilities, Wi-Fi, and flexible leases to make them more appealing. Platforms like Furnished Finder can help you find the right renters too!
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