@Wes Blackwell
Yes! I read your post on the Sacramento growth and influx a few days ago before posting my thread. When I first moved to the Bay Area 4 years ago, I could already see the trend starting in first first year of living here...a massive influx of people, jobs continuing to devlop, etc. I knew eventually it would start spilling over and people would move inland toward a nice area like Sacramento to find a great place to live at a much cheaper standard of living. I only wish I had the down payment saved up to get involved earlier, but better now than never.
Glad to hear you say that on the 2% rule. I'm new to BiggerPockets, but on their first podcast I listened to, I heard them mention the 2% rule and it shocked me as I thought "You guys are dreaming. Elsewhere in the US maybe, but what's realistic for the market being what it is in CA?"
In response to some of your questions, I'm definitely in it for the long term and looking at it as building long term wealth for 15, 20, 30 years down the road. That being said I'm looking more for appreciation, especially since that's what I think CA's market is made for, right? Looking at how the Bay Area, central coast and Los Angeles areas have boomed over the past 20-30 years, I think Sacramento is at a discount right now compared to it's future potential. I'm ok to sacrifice cash-flow and lower liquid annual return as long as it means long-term appreciation growth. Also I am not extremely comfortable with out of state. The month-to-month cash flow numbers crunch a little better, but I like the comfort of being close to the property and being able to drive by it or meet the tenants I'll be entrusting it to.
One follow-up question, why do you discourage against single-family or what else do you recommend I evaluate or consider when weighing a multi-family vs single-family purchase? Since I started researching I have been primarily looking at single-family, mostly because I see them as being more "steady" as a long-term buy and hold. Of course the multi-family units cash flow much better, but it seems like they are much harder to come by, and the ones that are out there are not in as great of areas, or are more high-maintenance with lots of tenant turnover, repairs/improvements, evictions, etc. A more higher quality single-family home in a neighborhood with quality schools and low crime seems like it'll appreciate a lot better and cause a lot less headaches over the long run. Maybe I'm just not as risk-averse or am worried I won't have the thick skin needed for the ups and downs of a multi-family.
Appreciate your thoughts and input.
