Sacramento Area Monthly Estimates for SFH/Duplex Rentals

[Samir Pathak]

Hey fellow investors!

I'm a new investor living in San Francisco, but am looking to purchase my first investment property in the Sacramento metro area. I'm looking at SFH and duplexes at this point, but would be open up to four-plexes since the lending criteria is around the same. I'm also open to paying cash, too, but only if it makes a competitive offer.

I've been perusing the main listing sites (redfin, realtor.com, zillow) as well as getting some listings from my agent. I know the Sac market is hot right now, which is why most of the numbers I'm crunching aren't really green in my analysis: I'm looking for 10%+ CoC and CF of $300+.

I've been using the following estimates for my calcs and am looking for some help validating the assumptions or reel me in where I'm way off base.  Any feedback would be much appreciated!

• Large CapEx - 8%
• HOI - 0.25%
• CA LLC - $80/mo
• Prop Taxes - 1.25%
• Prop Mgmt - 8%
• Vacancy Rate - 8%
• Maintenance/minor repair - 8%

Have I missed any key estimates and/or how do the %'s and $ values look? How are my CoC and CF requirements? These were numbers I put down on paper, but I've been seeing some rates close to 8% with my estimates, but not with the $300+ CF. Also, I know that the LLC price is the minimum I'm liable for and will also decrease as more properties are added, but for now, it would only be one LLC in the property.

Cheers,
Samir