Sacramento, CA. Anyone renting houses in south/north Sac?

Question

Hey everyone, looking to pick up my first house in Sacramento and wanted to really pick something up in the Natomas/South Natomas area.  What will most likely happen, due to housing prices, is me buying something in South Sacramento to start with.

Houses in the 60-90k range in south sac look like they could be a good cash flow.  This would be between 6th and 18th ave by hwy 99.  Anyone on here have any properties in the area and can share some insight?

Jeremy Williams · Answer

North Del Paso where the 80 highways start to reconnect is definitely a battlefield, I was at first interested here because of home prices. I went out and walked the neighborhood and spoke to anyone who looked friendly. After hearing stories about what houses were gang house, what houses were patched up from the bullet holes from a drive by, and other shootings in the area I decided it may not be quite what I was looking for.

Going southeast down del paso towards downtown Sacramento (hwy 160 I believe?) seems to be more on the quite side. Still doing some research and want to talk to some of the people who live there. There was a bit of money that is/was going into the area to make it nicer and also this I was reading today.

http://www.sacbee.com/2013/11/17/5918521/new-optimism-in-quest-to-revive.html

Julie Barrow · Answer

Hi Jeremy-

I have a few rentals in S Sac and one in S Natomas.  Just FYI, all need flood insurance.  The S Natomas home rented fast and well and has stayed rented, as has one S Sac home (a little further south than you are looking--near kaiser/Bruceville area).  I have a couple of condos near there that are harder to get rented, but boy is the cash flow great when they are rented!

My rents haven't gone down in last few years, but they certainly haven't gone up.

I am anxious to look at Al Williamson's blog about Oak Park and his 'battlefield lessons'.  I have a couple of properties that qualify for that.  DelPaso area can also tend towards the battlefield zone.

Good luck.  I think rentals and cash flow are where it's at for sure.  I'm always looking for more myself.

-Julie

Jeremy Williams · Answer

Not on a computer so can't use the @ functions

Mark, I've done a ton of research from Craigslist, zilliow, and a few calls from signs I've seen around when looking at houses. The price you have listed right now is actually exactly what I have listed on my spreadsheet for your area. I've tried to go as conservative as possible when analyzing properties.

Al, North Oak Park is one of my main places I'm searching in. The one 4/2 I was really interested in sold quick for cash so I'm still looking. I'm also looking a bit into the del paso/arden area where they've been trying to revitalize the area a bit. Can't say they have been as successful as north oak park is/will be.  I'll definitely be checking your blog out.

Al Williamson · Answer

@Mark Schulman make a great point. Yes to CL for reserach in Sacramento!

@Jeremy Williams all my local properties are in North Oak Park. It wasn't a nice area when I started in 2002. If you're willing, you can help get a sliver of South Sac back on it feet and reap the rewards.

Check out my BP blog for suggestion and battle field lessons.

Mark Schulman · Answer

Jeremy, I'm new to Bigger Pockets but have been active in Sacramento residential real estate for over 10 years. I own nice duplexes in South Sac and have seen rents weakening over the past couple years. I'm having trouble leasing a very nice 2/1 at 6099 Ventura. (Find it on CL if you care.) I've lowered rent $100 from my previous tenant plus I'm offering a free month. I've seen this pattern repeated vacancy after vacancy. Depressing and a little scary.

The message is not meant to be "avoid Sacramento rentals". The message is more, "don't be overly optimistic about what rents you can get." Craigslist is a powerful tool to get a real world picture of what the max is that you can charge for rent.

Jeremy Williams · Answer

Ya, there is quite a bit going on in the area with new construction and all the money being put into the area. North Oak park looks like it's getting most of the attention but is also more expensive. I'll take a look into the neighborhood association. Thanks

Al Williamson · Answer

sounds like the Oak Park area. Check into getting involved with the neighborhood association  first then looking for homes next to alies. There is a lot going on