Calculating rental properties and advice

[Allan Tualla]

Hello Everyone,

Im looking to get into the investment space and trying to gather information so I can better calculate rental properties in the greater Sacramento Ca and Stockton Ca area.

Question 1: what are the avg expenses in the area of Sacramento / Stockton Ca such as tax, insurance and utilities.

Question 2: what are the repairs that cost the most and the average life span of these items such as water heater, roof etc

Question 3: what are things you wish you knew as a new investor that you know now.

Im new to this space so any information helps. thank you all!

[Nathan Gesner]

Answer #1: Do a Google search for "average property tax Sacramento" and you'll get this:

Sacramento County is located in northern California and has a population of just over 1.5 million people. It's also home to the state capital of California. The county's average effective property tax rate is 0.93%. At that rate, the total property tax on a home worth $200,000 would be $1,860.

Do the same for utilities, insurance, or whatever.

Answer #2: Some examples of capex expenses:

• Replace roof (25 - 50 years)
• Replace AC and/or furnace/boiler (10 - 30 years)
• Kitchen/bathroom remodels (10 - 30 years)
• Windows and doors (15 - 30 years)
• Driveway (25 - 30 years)
• House siding (20 - 30 years)
• Flooring (7 - 20 years)

This depends on the house, the materials used, quality of installation, weather, how long ago it was installed, and other factors. You'll have to evaluate every property on its own.

Answer #3: I could go on all day. I wish I had been more bold and bought more property early on. Buy and hold and it will be very, very hard to lose.