Is Sacramento a Good Choice for Real Estate Investment?

[Ron Bar]

Hello everyone,

I’m new to real estate investing and considering Sacramento for my first property. I’m aiming for a balance of reliable monthly rental income and long-term appreciation. I’d appreciate any insights on whether Sacramento is a good fit for these goals.

1. Rental Demand & Cash Flow: Is it feasible to achieve consistent monthly cash flow in Sacramento, given the current property prices and rental market?

2. Appreciation Outlook: What’s the general outlook for property appreciation in Sacramento? Are there trends or developments that could impact future growth?

3. Local Regulations: How do local landlord-tenant laws, rent control policies, or other regulations affect investment profitability?

Overall, would you recommend Sacramento compared to other U.S. markets, considering both rental income potential and appreciation prospects?

Thanks for any advice you can share!

[Jake Andronico]

@Ron Bar

Sac is a great market in California, as long as you can stomach and understand the tenant/landlord laws, property taxes, and rent control in certain areas, etc. 

There is migration there from SF consistently. Beautiful area that I visit often. 

I'm over the hill in Reno, NV which is a smaller market but has a lot of similar dynamics. The biggest differences are the benefits from being in Nevada and right next to Lake Tahoe. 

Stable job growth, population growth, much more friendly tenant/landlord laws, property taxes DO NOT reassess on the sale, high appreciation due to land constraints, etc. 

May not make sense for you, but always want to mention it as people have always slept on Reno!