1st time home buyer

[Andrew Collins]

Hi BP!

This is my first post, though I've been listening to the podcasts for a while now. A big thanks to Brandon and Josh for what they do!

I'm a recent (non real-estate) law school graduate taking the bar at the end of the month. In August, I'm moving to Sacramento for a new job and looking at investing there. I've figured out my financing (FHA supplemented by cash) and I'm looking to buy a SRF in the Sacramento and share it with a renter. I'm looking to purchase for 160k or less.

I've been having some difficulties finding a place with my agent and have a few questions:

1) I've been looking on the MLS and it seems that every decent property in my price range is snapped up immediately. I've also put in an offer on a property only to be been drastically outbid. Does anybody have experience successfully buying with non-cash in this price range in the Sacramento area?

2) I know I'm priced out of Down/midtown and East Sacramento. It also looks like a lot of North Sacramento is dangerous. Any ideas on neighborhoods that are reasonably safe in my price range? I have been looking at West Sacramento and some parts of Oak Park.

3) Does anybody in Sacramento have experience finding FHA properties in Sacramento using anything other than the MLS and Craigslist?

Thanks in advance for your advice!

[Kelli Foley]

Congrats Andrew!

I was born and raised in Sacramento and an investor, broker and own a boutique real estate company. I believe you can find something in your price range, in a decent neighborhood with FHA.

Consider thinking like an investor even to buy a house for your self. It may be more work, but the benefits maybe great. Talk to fsbo, other investors, etc. I will keep you in mind if I come across something that will work with FHA, right now I have one fixer, but wont go FHA even with an 203k. ( a 203k, if you aren't aware, is an FHA loan for fixers. The house gets appraised for after repair value, and moneys are held for repairs. It is time consuming processes, but something else for you to consider )

Wondering how often you have been to Sacramento and driven some of the neighborhoods? I wouldn't group all of south Sacramento or north Sacramento, nor any one zip code into good or bad. There are parts of many zip codes I would not buy in, but would in other parts of that same zip code.

What are your other life interests outside of work? Do you run, bike into water sports? Sacramento has a lot of these to offer. Nice neighborhoods I have and continue to buy, because not everyone can afford the Midtown, East Sac, downtown, are South Natomas 95833 and some of 95834, Rancho Cordova 95670, unincorporated Sacramento parts of 95821, 95825, 95864, 95841, 95842. 

Don't stop putting offers in. Be creative. Even though I am an investor, there is a lot of investor hate and many home owners would consider selling to an owner occupant rather then an investor, even with FHA - I have done it and will continue to. Many home owners don't want to leave there neighbors with a rental property. Consider writing a letter to the homeowner, especially if the owner is a homeowner and not an investor, especially if it is a home owner that has owned for a very long time.

Real estate is a relationship business. Your Agent needs to work on forming a relationship with the listing agent, selling them on you and him/her.

Good luck and welcome to Sacramento!