All Forum Posts by: Daniel Arose

Trying to buy multi-fam in Northern California. Yolo , Sacramento , El dorado, Placer County and/or other surrounding areas. 

-About my current situation.  I own two rental properties that I bought based solely on positive cash flow. Both were purchased before I leaned about the Bigger Pockets community, the wealth of knowledge that is available, and all the different analysis required to make a smart purchase.  

-Here's my question: Does the 2% rule apply in this area? So far in this area we have not found any properties that will meet the 2% rule. Even 1% of purchase price seems hard to get with comparable Craigslist rental rates without raising the rent a couple hundred dollars. Where else can you check rental rate comparisons? What are the things I should be looking for in this area when purchasing a multi-family unit property? We want a 3 or 4 unit in the next 6-12 months that we can occupy for the minimum contract requirement based on a the FHA " 1 year "or Conventional with 5% down standards. I don't imagine I will be able to buy much under appraisal value do to the tough FHA requirements so we will probably end up with a close to turn key property that might allow for a little added value with minor updates. What do ya'll think? What do you know about this market ? What should I be focusing in on? I am open to all suggestions. Are you guys and gals getting that 2% rate in this area? what else should I be calculating? I've researched BRRRR but I do not believe any of those principle would apply for the strategy listed above.