Looking in Sacramento

[Jeremey McClain]

Hi all,

I am looking to acquire my first property this year preferably a multi-family that I can owner occupy. I am looking for any off market deals on for multi-families or single family residences that I could possibly do a BRRRR with. If anybody has recommendations or knows any wholesalers or anyone who has a great deal on these properties in Sacramento or surrounding areas that comes across any properties please let me know. As always I am willing to add value back so if there is any way that I may be able to help others please let me know as well. All help is appreciated.

[Wes Blackwell]

@Jeremey McClain

Hey Jeremey! 

I've helped a lot of people just like you in Sacramento, and here are my 2 cents:

1) If you're truly looking to get the best return on investment, look to owner-occupy a fourplex. Live in one unit and rent out the other three. Most likely, you'll have the entire mortgage covered which means you'll get to live there for free! Save all that extra money you would've spent on a mortgage or on rent and save up to purchase your next property and maybe you can repeat the process in 3-5 years.

2) You could also do a duplex for something less expensive and more manageable, but you're not going to be living for free either. Look at it like you're getting a severely reduced mortgage payment (50% or so) which still leads to more savings like I described above. Essentially, you're able to control a higher value property with a lower monthly obligation. 

3) Off-market deals for 2-4 unit multifamily are going to be rare. That's moreso the area of Single Family and Commercial Multifamily. Plus, with this super hot seller's market, it's way too easy for an agent to just list the property on the MLS and sell it in less than a week with multiple offers. But still, you may find some from a wholesaler.

4) Be wary of wholesalers, as they're salesmen. They do not have a "fiduciary duty" to you like a real estate agent does, meaning they don't have to do what's in your best interest. So it's kind of like a car salesman. Many are just getting started and will tell you something is a deal when it's clearly overpriced, or even try to wholesale you someone else's deal by adding their own profit on top of it. Just make sure you work with someone reputable who is selling you their own deal and not someone else's they know nothing about. 

5) Ask to see the comps. And ask the person showing you WHY they're good comps. If they bumble and fumble over the explanation, they're full of crap. A good advisor should talk you OUT of more deals than they talk you into, and just make sure you get a more experienced opinion on anything you decide to offer on, whether it's another investor, a real estate agent, or the forums here on BP.

Hope this information helps! Best of luck!