How is the rental market for Single Family Homes in Elk Grove. I am planning to buy a home, but would like to rent it after 1 year

Asked by Ravisher.dhillon, Fremont, CA Sun Oct 20, 2013

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6
James Tan, Agent, elk grove, CA
Thu Oct 24, 2013
Hi

The rental market in elk grove is good. Adding to Sue's excellent answer, homes which have HOA tend to be mostly owner occupied. Whereas homes that don't even though they have CCRs may have more rentals. If you are buying a rental try to keep your purchase around $250k or less. Proximity to good schools with high API ratings is a big plus. Some investors would prefer buying slightly older homes 1990+ which tend to have less mello roos. The latter may almost double your property taxes in certain cases. Please contact me if you need further info.

Hope that helps.

James Tan
916 230 5250
0 votes
Jim Walker, Agent, Carmichael, CA
Tue Oct 22, 2013
There is a big difference in the interest rate and down pay requirement for an owner occ home than there is for an investment property. The rate is lower, the closing cost lower, and the down pay needed is lower for owner occ.
Elk Grove has high demand for rental houses and for owner occ houses, like the rest of Sacramento's region.
0 votes
Aleena, Other Pro, Elk Grove, CA
Mon Oct 21, 2013
Hello,
Sue Archer has good advice! In addition to that, if you are looking to rent the home out, then my advice would be to get a Property Manager. We have a great screening process that will secure a good tenant for you, and preserve your new home. We also have a great source of advertising and people that are looking for homes.. Take a look at our website at rrrents.com
Aleena Weiss
0 votes
Sue Archer R…, Agent, Palm Harbor, FL
Sun Oct 20, 2013
As in any market, my personal approach is always to buy a home under1700 square feet, no pool.

Elk Grove can provide a good supply of homes where you can realize a profit based on the purchase price of a home and the rents received. I caution you on two items:
Declare your correct intention on the home- many buyers declared that it was an owner occupied home and had no intention of living there. They are watching more diligently for fraud and it's not worth it. Rather, declare its true intention as an investment property.
Discuss with professionals on the movement in the specific area you are considering buying. Elk Grove has some areas that for some reason, became concentrated rental areas, with many owners living in the Bay Area as you do. The homes exterior were not as well maintained, and the values were lower than similar areas. It is curious to me as to the randomness of why some areas turned mostly rentals and others retained owner occupied homeownership. It's a unique situation in Elk Grove.

One last note, you specify that you would like to rent it 'after one year'. The IRS considers two years as solid evidence of the home being an owner occupied home. You're planning from day one for only one year of occupancy. They will check other factors, such as where you are employed etc. for further validation. Just sayin'....
0 votes
Keisha Mathe…, Agent, Elk Grove, CA
Sun Oct 20, 2013
Hello Ravisher

Depending upon what you are looking for specifically (sq ft, bed/bath count), I recommend using the cargslist link which many landlords use to post available properties for rent. This can provide you with an approximattion of what it might cost you to rent, based upon your preference.

At this link, http://sacramento.craigslist.org/apa/
Enter "Elk Grove" in the search column and then select your other criteria: Bed/Bath, Housing type (Condo/Duplex/House, etc).

Hope that helps. My best to you and welcome to our wonderful city of Elk Grove and Sacramento County!

Keisha Mathews, REALTOR®
CDPE®, HRC®, HAFA® Certified
SAR Masters Club Member 2012
SAR Masters Club Steering Committee
Mathews & Co. Realty Group
@ Century 21 Landmark Network
keisha.mathews@century21.com
(916) 370-1803 cell
lic#: 01439130
0 votes
Alexander Gr…, Agent, San Jose, CA
Sun Oct 20, 2013
The rental market is improving. It is a very good time to get into a home, either to live or rent.

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
0 votes
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