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

[Tyler Ettner]

Hey Jason!

Congrats on your decision to join this amazing community. I am a Sacramento native and have also been looking at the area as an option to begin investing in Multifamily rentals. There appear to be many fixer-upper type of homes in Arden-Arcade that might be perfect for the BRRRR strategy from Bigger Pockets. Perhaps you might be interested in partnering on a deal? I have quite a bit of cash to invest as well as many friends and family in the area that could prove valuable in caring for a rental property. Let's get in touch and talk further!!

Cheers,

Tyler