invest multi-family home

[Hyeonji Oh]

Hi Everyone, I am glad I joined Biggerpockets to start my investment journey.

I was trying to buy my own house first but I decided my mind to buy investment property first. I am currently living in the Bay Area, California. I am looking for an agent who has experience in investing property anywhere in the States. After having one property this year, I want to expand my properties. 

I am open to investing in multi-family houses not only in California but also in the nearest states (AZ, NV, or WA). 

-ANY GOOD CASHFLOW AREAS in CA? Modesto or Stockton, Fresno, Sacramento, Central Valley?

-Any recommendations for a real estate agent, experienced in good investment properties?

Thank you for all your help!

I still don't know which area I should buy a multi-family home in California. Should I invest in the other states?

[Caroline Gerardo]

Agents are tied to their "paper-route." An agent should have boots on ground and walked through hundreds of properties in an area, and sold them as well. Hard to suggest an agent for many states as they are city specific.

Multi-family you mean more than eight units?

[Jawei Kuo]

Hey Hyeonji,

I know you mentioned different locations along the central valley you were exploring for cashflowing investment properties. While I cannot speak for any of the other areas you mentioned, I can provide you some insight into the investing market here in Sacramento. 

Population Growth: 49% Population Growth over the past 20 years, Sacramento has experienced a tremendous growth in population with individuals and investors alike coming in from the Bay Area seeking more affordable costs of living and lower barriers of entry into real estate. 

Median Income and Job Growth: With a median income growth of 103% over the same past 20 years combined with a 2.39% job growth, Sacramento is filled with medical professionals, government jobs, and professional services. 

Appreciation and Growth: Sacramento has seen around an estimated 256% growth in terms of median household value, with large developments planned and in progress in suburbs such as Roseville, Elk Grove, and Folsom.

My team and I at Hardin Realty & Property Management specialize in helping investors in the greater Sacramento area. I hope I was able to provide you some insight into the market in Sacramento, if you have any more questions regarding this please feel free to reach out I'm more than happy to connect and chat!

[Ranjit Sandhu]

Quote from @Hyeonji Oh:

Hi Everyone, I am glad I joined Biggerpockets to start my investment journey.

I was trying to buy my own house first but I decided my mind to buy investment property first. I am currently living in the Bay Area, California. I am looking for an agent who has experience in investing property anywhere in the States. After having one property this year, I want to expand my properties. 

I am open to investing in multi-family houses not only in California but also in the nearest states (AZ, NV, or WA). 

-ANY GOOD CASHFLOW AREAS in CA? Modesto or Stockton, Fresno, Sacramento, Central Valley?

-Any recommendations for a real estate agent, experienced in good investment properties?

Thank you for all your help!

I still don't know which area I should buy a multi-family home in California. Should I invest in the other states?

First of all welcome to BP family! I’m from Rocklin area which is north of Sacramento. What’s your budget/price before we find a property for you. All the best!

[Raju Balakrishnan]

Congrats on making your mind to invest @Hyonji Ho. Great move.  Finding cash flow anywhere in CA is not straight forward. You would have to at least be ready to do some renovations or search really wide and deep. Appreciation is fairly easy in bay area and anywhere in CA. But you will have to hold the property several years to get your money back, often with negative cash flow. 

Out of state has cash flowing markets, but it is harder than buying locally. You should know markets and understand rentals business well. I would not advice that unless you know some areas and have local connections  already OOS. 

Since you are interested in primary home also, house hacking may work best for you. Buy a fourplex, live in one and rent the rest. Will partly compensate you mortgage and insurance, and you can put you rents to take care of rest. Bay area appreciations are likely to take care of the rest. 

[Scott Scoville]

Quote from @Hyeonji Oh:

Hi Everyone, I am glad I joined Biggerpockets to start my investment journey.

I was trying to buy my own house first but I decided my mind to buy investment property first. I am currently living in the Bay Area, California. I am looking for an agent who has experience in investing property anywhere in the States. After having one property this year, I want to expand my properties. 

I am open to investing in multi-family houses not only in California but also in the nearest states (AZ, NV, or WA). 

-ANY GOOD CASHFLOW AREAS in CA? Modesto or Stockton, Fresno, Sacramento, Central Valley?

-Any recommendations for a real estate agent, experienced in good investment properties?

Thank you for all your help!

I still don't know which area I should buy a multi-family home in California. Should I invest in the other states?

Cash flow is possible in Sacramento, but mostly for creative, subject to, seller finance deals. We get a lot of those deals. Reach out if you'd like to chat more about this.

[Hyeonji Oh]

Quote from @Caroline Gerardo:

Agents are tied to their "paper-route." An agent should have boots on ground and walked through hundreds of properties in an area, and sold them as well. Hard to suggest an agent for many states as they are city-specific.

Multi-family you mean more than eight units?

 Thank you for your reply. I should be specific about which location I prefer. 

I am looking for 2 or 4 multi-units.

[Hyeonji Oh]

Quote from @Ranjit Sandhu:

Quote from @Hyeonji Oh:

Hi Everyone, I am glad I joined Biggerpockets to start my investment journey.

I was trying to buy my own house first but I decided my mind to buy investment property first. I am currently living in the Bay Area, California. I am looking for an agent who has experience in investing property anywhere in the States. After having one property this year, I want to expand my properties. 

I am open to investing in multi-family houses not only in California but also in the nearest states (AZ, NV, or WA). 

-ANY GOOD CASHFLOW AREAS in CA? Modesto or Stockton, Fresno, Sacramento, Central Valley?

-Any recommendations for a real estate agent, experienced in good investment properties?

Thank you for all your help!

I still don't know which area I should buy a multi-family home in California. Should I invest in the other states?

First of all welcome to BP family! I’m from Rocklin area which is north of Sacramento. What’s your budget/price before we find a property for you. All the best!

Thank you for your reply!
My budget is $100k. Do you have 2-4 multi unit?

[Ranjit Sandhu]

Quote from @Hyeonji Oh:

Quote from @Ranjit Sandhu:

Quote from @Hyeonji Oh:

Hi Everyone, I am glad I joined Biggerpockets to start my investment journey.

I was trying to buy my own house first but I decided my mind to buy investment property first. I am currently living in the Bay Area, California. I am looking for an agent who has experience in investing property anywhere in the States. After having one property this year, I want to expand my properties. 

I am open to investing in multi-family houses not only in California but also in the nearest states (AZ, NV, or WA). 

-ANY GOOD CASHFLOW AREAS in CA? Modesto or Stockton, Fresno, Sacramento, Central Valley?

-Any recommendations for a real estate agent, experienced in good investment properties?

Thank you for all your help!

I still don't know which area I should buy a multi-family home in California. Should I invest in the other states?

First of all welcome to BP family! I’m from Rocklin area which is north of Sacramento. What’s your budget/price before we find a property for you. All the best!

Thank you for your reply!
My budget is $100k. Do you have 2-4 multi unit?

 Not even bare land for $100k.

[Michael Doherty]

Hi - Congrats on starting your investment journey! If you ever want to consider the East Coast (Connecticut) I can be an asset for you. I am an investor friendly agent, and also have my own portfolio. 

$100k doesn't go far out here but there are still deals to be had. 2 family, full rehabs in the lower to mid $100k range come my way occasionally. 

DM me if I can be of any assistance to you!

[Jake Andronico]

@Hyeonji Oh

Welcome to BP!! Sent you a PM. 

[Amani Walton]

Welcome to BP! I'm going to send you a PM.

[Mike Paolucci]

Quote from @Hyeonji Oh:

Hi Everyone, I am glad I joined Biggerpockets to start my investment journey.

 Hi @Hyeonji Oh 

I'm originally from San Francisco, CA and started investing in 2021. It was pretty hard to find properties where the numbers and landlord laws made sense which is what ultimately led me to investing in Columbus, OH.

The numbers and landlord laws out here made sense then, and they still do today. I've been able to get a healthy combination of both cashflow and appreciation from all my properties after a little TLC. 

Here's an example of what I mean by landlord laws not making sense. On the upcoming November ballot for CA, they're tying to pass the "Justice for Renters Act." This will basically limit what you're able to charge for rent for a new tenant. Not to mention other pieces of legislation that make being a landlord in CA not the most ideal. 

Happy to share my experiences. Good luck on your REI journey and property search!!