First Rental Property in Sacramento, CA

[Jason Chen]

Hello BiggerPockets,

My name is Jason and I am brand new here to BiggerPockets. A Bay Area native, I just graduated from UC Berkeley and am looking to buy my first investment property in the Sacramento area. I am looking to implement a buy and hold strategy for 2-4 unit multifamily properties since I am looking for an ideal balance between positive cash flow and appreciation potential.

I would like to get your thoughts on investing in C neighborhoods such as Citrus Heights, Arden-Arcade, and Rancho Cordova. According to my research, these are the only areas that can cash flow pretty reasonably well based on a budget under 400k. Do you think the higher return outweighs the risks (such as crime, vacancies, and maintenance expenses) when compared to a property in say downtown or midtown Sacramento which seems to me a pure appreciation play right now?

If you have invested in Sacramento before, I would really appreciate it if you could share your reasoning behind where you decided to invest and your experiences owning a rental property in this market. Thanks and happy investing!

Best,

Jason