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Steve, Home Buyer in Sacramento, CA

Looking for cashflow properties in Sacramento area.

Asked by Steve, Sacramento, CA Thu Jul 24, 2008

I am looking for a property that has some potentials. I like to add some improvements to increase its value. I see lots of REO up there. I like multi-units 2-4. What would you buy in this current market, sfr or multi units? What area has high rental demand? Does merchandising (buy/sell) work anymore? Is REO buying is the way to get a good deal or ?
Steve

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Hello Steve. Usually, areas near colleges/universities and hospitals have a high rental demand. It's my experience, that most owners of multi-units are holding on to them right now. There are some on the market, but unless they are REOs, they are not bargain priced. Flipping has become much harder because there's such a large inventory that you'll compete with after you put the property back on the market. Unless you can buy in bulk at a discounted price, getting a good enough price to flip the property a few months later for a profit is difficult because the prices are still going down while you are fixing up the property and the # of available properties is probably the same it was when you bought a few months earlier. I think if you can buy, fix and rent out for a few years, you'll be better off than trying to go for the quick turnaround profit. Don't get me wrong, there are definitely good deals out there, but there are also a lot of people like yourself looking for them which can lead to a multiple offers. Not all REOs are good deals. You really have to spend a lot of time searching the MLS and looking at the houses to find good deals and you have to be prepared to act quickly and cash is king. I hope this helps. Good luck to you.
0 votes Thank Flag Link Thu Jul 24, 2008
Ute Ferdig -…, Real Estate Pro in New Castle, DE
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