How to find deals in Sacramento for new investor

[Taylor Steenburgen]

Looking in the Sacramento area for multifamily rental properties and having a hard time finding ones that cash flow. Ones that do cash flow are bought quickly. Any advice for the Sacramento market? Also any advice on percentage figures for Cap Ex and vacancy specific to the Sacramento area?

[James Peterson]

Hi Taylor,

Finding deals for cashflow are difficult in Sacramento right now. CAP Rates are typically micro-market specific for small multi-family. I'm curious what your buy box is? 2-4 unit? 4-8? 30% down? Pricepoint? - I have helped other investors cash flow on single family in certain areas just outside of Sacramento. Granted - not a lot of cashflow. Value-add is pretty much the name of the game including adding units etc. to increase cashflow and value. Partner with a great agent, and property manager that can help source opportunities. Wholesalers typically focus on single family, highest consumer denand, and rarely come up with multifamily. If you commit to an agent they should be willing to approach sellers, in your buy-box, directly and hopefully avoid the open market.

-James