Rentals in Sacramento, CA

[Anthony S.]

Hello everyone,

I'm a new investor from the Bay Area and I'm looking to buy my first rental.

I have found several condos 2bd/1ba in Sacramento that are listed for  $40k-$50k, some of these properties have been sitting on the market for as long as 4 months. Similar properties in the area are renting from $700-$800, I'm not sure how safe the neighborhoods are. I'm planning on driving out there sometime this week to check out the neighborhoods. The numbers look great, the property will cash flow about $200 a month. 

Aside from cash flowing, if there anything else I should consider before pulling the trigger on such rental properties?

How important is the location?

Any feedback or suggestions will be greatly appreciated.

Thanks,

Anthony

[David Hutson]

I am in Sac and familiar with condo's and was also at the BP meeting last week. 

The biggest issue in Sac with buying condos is that several associations cap investor owners under 50% due to lending restrictions.  If you want to purchase here I recommend you start with the association and ask 1. if there are investor restrictions 2. what percent are they at now. 

For that price I would guess you are looking at a McCuen condo.  I own several units here and if the associations aren't fighting investors they provide a good return.

Feel free to message me if you have specific questions.