Sacramento investor looking to make first purchase

[Kyle Murphy]

Hi all,

I'm currently living in Los Angeles, but grew up in Sacramento. I visit during holidays as my family still lives there. 

I'm looking to buy my first investment property in Sacramento within the next 12 months and was hoping to hear from some folks who are currently investing to get an idea of the kind of cap rates you are seeing. 

Is Oak Park still up and coming in your opinion, or is that a missed opportunity? 

Does anyone have any thoughts on Tahoe Park / Tahoe Park East? I'm thinking with the new arena and all the development happening downtown that might push prices and rents up in the adjacent neighborhoods. 

Any other neighborhoods I should be looking at? 

In addition, if there is an investor-focused agent on BP who focuses on SFR and duplex in the Sacramento area please reach out.

Thanks!

-Kyle 

[Joe Bertolino]

I think Oak Park/Tahoe Park have see just about all of the appreciation they will see for awhile and the gentrification process has been slow. I think you are 18-24 months too late.

In terms of rentals and appreciation I am not seeing anything great.

I am kicking around a rental in a new gated subdivision selling 4/2’s for under $288k. South Sacramento address but zoned for the Elk Grove school district (very coveted rental area for the schools). They are properties I could see appreciating $75k+ in the next few years. They will rent for $1850-2000. Probably $2000 considering it is brand new and gated.

Off market deal but there are 5 that will completed in the next 6 weeks.