All Forum Posts by: Dinesh Singh

@Dinesh Singh Why those markets? What is the reasoning behind? Negative cashflow in my opinion is never an option, at least going in.

Why not some of these top 2023 markets : https://www.biggerpockets.com/...

Hey Dinesh,

I'm a local investor and real estate agent. I grew up in Elk Grove and know it well. Let me know if you'd like to chat about the EG market.

Elk Grove is a good location for appreciation and typically good tenants.  Why not find something that can be more profitable over the long run and build a larger portfolio using the brrrr method, force appreciation by adding units, rehabbing etc?  I would consider B and A neighborhoods in Sacramento,  close to downtown, homes with 80% of the buyer pool demand will be the most stable, Folsom and Roseville are also excellent choices, good schools, growth etc.  A negative in cashflow would be the least of my worries,  finding something that does cashflow right away signals low appreciation and bad areas/problem tenants etc.  If you can financially support that small negative,  you'll be in a great place in 10 years as you'll capture a much higher rate of return than cheap areas. If your goal is to build wealth.

To flesh out your decision a bit more, you might want to think about this in a little more depth.

Go into both areas from 10 am to well past dark and drive the areas.

Visit the grocery stores and fast foods, a few times each day and see what you think of the areas population.

Talk to some shop owners in the area and get their view on the locals.

Because these are the people who will be your renters.

Do the look like they can pay the rent, (decent vehicles, decent clothing) or does the people look like they are struggling.

Think about if this is this an area you want to do business in -->(long term)<--?

Do the homes in the area look clean and tidy, or neglected with cars on blocks out front and etc...

Good Luck!

@Dinesh Singh I’m a broker in Rocklin north of Sacramento. Rocklin has the best schools in placer county and that was one of the reason I moved to Rocklin in 1996. Let me know if I can be any help. 

Would you rather have tenants that are young professionals or a family with kids?  No wrong answer here but my advice is to make sure your quality of product is matching the quality of tenant (income, credit) you're attracting.  I recently bought in a family-neighborhood and when I move out, I will be looking to rent to a family that will hopefully remain as great tenants for the duration of the kids' schooling.