All Forum Posts by: Minka Sha

Welcome! I'm from Sacramento as well. Looks like there is a decent number of us here now. What kind of stuff are you looking for?

@Jordan Thibodeau  -- LOL - that's Sacramento "network effect" in action. I'm around on Saturday - I'll send you a PM so we can catch up. 

@Eric Bowlin , @Richard C. ,@Elizabeth Colegrove ,@Michael G. , @Tim Holmes , @Joe Villeneuve 

Thank you all for your replies and the amazing support! It always amazes me how it's not a good deal for someone but it's a GREAT deal for someone else. Good points about reverse engineering!

I'll keep you posted on what ends up happening with the property. :-)

 @Eric Bowlin  - words of wisdom Eric Bowlin! 

This doesn't exactly meet my rule of $100 per unit but the property has low maintenance and near a hospital so I'm hoping for quality tenants. I'm trying to see how to best balance that. 

Another thing could be that I can manage the property on my own, because it has such a low maintenance; however, my concern is that throws a wrench on my plans to scale - it would take away time from buying more properties.

The math includes a reserve of $50 per month in the cost for a yearly $600 for any issues/repairs.

2 Unit Property in area listed at 175k and just fell out of escrow after someone placed an offer above everyone else. I had an offer of 180k on it and they want to know if that's my best offer. Would you offer more or walk away?

I'm assuming vacancy rate of 7%, PM of 6%, Insurance of $650. 1 Unit (1 BR/1BA) is rented at $725 and the other (2BR/1BA) at $750.

The property is in exquisite shape and the renters are taking great care of it. Each unit is 650 Sqft and comes with installed laundry+washer, appliances and the property was recently renovated. It doesn't have central heat and air so that might be another upgrade down the line.

Here is the math:

INCOME

Monthly Rental$ 1,475.00

COSTS

mortgage$ 726.90

insurance (fixed)$ 54.17

vacancy rate$ 103.25

taxes$ 150.00

property mgmt company$ 118.00

water bill, sewer, garbage$ 195.00

city annual fee$ 10.00

misc big ticket items$ 50.00

landscaping$ 40.00

TOTAL MONTHLY EXPENSES (with mortgage)$ 1,447.32

Monthly cash flow (with mortgage)$ 27.68 

Congratulations @Chris Vail. Thank you for sharing your offer timing experiences. I have made 5 offers so far, for my last property it took me 11 offers before I got one. Let's see where I'm on 11th offer.

Thank you for the areas and replies. This is useful information. I have not looked at Orangevale or Antelope area but I have asked my agent to start searching that area as well. 

@Dennis Lanni - I took a look at North Highlands the other day. Some decent cash flow properties there but the growth in equity and the super-hood feel of the area is a concern.

@Jake Weir - In general, I am interested in properties which are:

• $100 or more cash flow per unit. Exception to this rule is a property in downtown, where I can move in and rent the other units
• Price below $425k
• Rent is More or less 0.75-1% of the listed price

Thank you for the feedback guys. Hopefully some more Sacramento investors chime in - may be there is some secret sauce that we don't have. What areas have you been looking at?

I am trying to acquire a rental property for long term cash flow in Sacramento area but getting frustrated with all the cash buyers on rentals. I'm doing conventional loan. So far, I'm not having luck as my last two offers: 180k - seller took cash offer of 200k 300k - seller took cash offer Of 340k And same for two other properties. Two questions: What are some good areas for rentals in Sacramento area? I have been looking downtown/midtown/Tahoe park/North oak park. More importantly, I have heard I can help other investors by partnering with them instead of competing with them on deals. I have sizable cash down payment so I am open to that approach as well. Does anyone have any local contacts for this?

I don't know if this is commonplace in your area but you can ask for the rental history report for the building as well. This can act as another negotiating tool to give you information about how long these units have been empty.