Home Buying in Sacramento>Question Details

Yang, Home Buyer in San Jose, CA

Rental Investment homes in Sacaremento ?

Asked by Yang, San Jose, CA Thu May 2, 2013

I am looking to buy an investment SFH in Sacramento (or other good area in North CA) which would have a rental income of atleast $1200-$1300 per month. My budget is around $25K down payment and around $700- $900 mortgage. So minus the mortgage (plus PMI, insurance, property tax etc) I am looking for a cashflow of atleast $ 400.
Any suggestions/advice/details of agent who specializes in Sacaremento homes etc greatly appreciated.

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Nancy Bergman’s answer
As a Property Manager and Realtor, I suggest you try to find something in the $150k-$200K. However, the inventory on those properties are tight. I suggest you look in 95820, 95821,95864,95825,95833, zip codes. The best way to go is 20% or more down and be very competitive in your offer. Rents on average is about a $1 per sq ft --- also depends on the house.
If you don't mind some elbow grease, I suggest a REO or Short Sale and you may the repairs. They are still here, but you need to act fast, because it is looks like a deal, smells like a deal then it will be gone within 72 hours or less on the market.
Good luck.
Nancy

Nancy S Bergman
Realtor - Lyon Short Sale Certified
Property Manager
DRE # 01893550
Lyon RE Downtown
2801 J Street
Sacramento, CA 95816
Primary: 916-400-1355
nbergman1@live.com
http://www.sachomesbynancy.com
0 votes Thank Flag Link Thu May 2, 2013
Thanks regarding the REO suggestion. Any idea whether we can get REO properties in zip code 95835 with $150K range?
Flag Sun May 5, 2013
Thanks Nancy for taking out the time and providing your inputs.
Flag Sun May 5, 2013
Your #'s look good till you get to the $400 cash flow, but at least you're not paying PMI with 25% down. You could probably "net" $400+ after tax write-offs, but should check with your accountant to confirm. And you need an agent ASAP because that price range is extremely competitive! Gotta get your offer in fast & have all of your financials verifiable at that time. I can help!
0 votes Thank Flag Link Thu May 2, 2013
Thanks a lot Matt for your valuable inputs.
Flag Sun May 5, 2013
Mr Yang

I think it's great you are looking to purchase an investment property. Since you are looking to purchase an investment home, you will need to put down 20%. In this scenario, you are looking at a purchase price of $125,000. This will keep your payment around where you want it to be.
Inventory is low and prices are going up, so you have to act fast. In this price range, it can be quite challenging. Most of these homes will need some sort of work. So you will have to be prepared for that as well. Anywhere from paint, flooring, appliances and/or exterior maintenance.

I suggest you talk to a lender to get pre-qualified first if you haven't already. Next, choose a Realtor to work with then make a trip out here to take a look at some properties. Maybe write down some questions to ask your agent as well. The cash flow is there, you just have to move quickly.

If you have any further questions or would like my help, feel free to contact me anytime.

Sincerely,
Jaime Becker
Lyon Real Estate
jbeckerRealtor@yahoo.com
http://www.SacramentoHomesByJaime.com
Off: 916-484-3610
Cell: 916-715-7454
DRE# 01737783
0 votes Thank Flag Link Thu May 2, 2013
Thanks Jaimie for your valuable inputs
Flag Sun May 5, 2013
I work with out of area investors and have built solid rental portfolios. We need to figure out the time you have available for the initial preview process and determine how we can best work together in accomplishing your goals.
I feel you have realistic expectations for today's market and with some dedication and patience we will serve your Real Estate needs.
You can send a private message here or to eddie@Bhrparkplace.com to set up some time together.
EM
DRE#01324382
0 votes Thank Flag Link Thu May 2, 2013
Thanks Eddie for your valuable inputs.
Flag Sun May 5, 2013
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