Investing in Sacramento - Lots of questions!

[Nate McCarthy]

Hi! I'm an aspiring investor hoping to move to Sacramento with my wife this year, and we'd like to do a house hack in a multifamily residential property. This won't be our first time living in Sac but our first time doing so with a keen eye on real estate. 

I'd be interested in any insight on the Sacramento market, esp. from investors in multifamily. Lots of questions: Which neighborhoods should be avoided? Are there team members (RE agents, wholesalers, lenders, PMs, contractors, etc) you'd recommend? How have you found success finding deals in today's market? What are "typical" rental terms in Sac (e.g. does owner or tenant pay utilities, trash, water etc) for your properties? Are there REI networking groups you'd recommend? I'm seeing a lot of homes up for auction (mostly SFH but some multifamily) around town--do you have any insight into this trend (why all the foreclosures?) or any experience buying homes at auction in Sac? Are there any bedroom communities near Sac you've had success with?

Truly grateful for anything you're able to share!

[Noah Laker]

Quote from @Nate McCarthy:

@Noah Laker, thank you so much for the reply!

As for the areas to target, my goal in getting our feet wet as real estate investors--and since we plan to be living in Sac--is to find a property we can live in while renting out one or more units to help cover our housing expenses, which we can then hold and continue to rent out when we move. So... the definition of a house hack, I guess. We're willing to live almost anywhere in the greater Sacramento area based on what we can afford, provided of course that the property is in a decent neighborhood that has a good chance of attracting responsible tenants.

As for budget, I believe we could get a conventional loan for properties up to $600k, but my strong preference is to find a distressed property (or seller!) for <$400k. In other words, I think we will probably have to be on the hunt for a very good deal or a very distressed property, and will not be investing in million-dollar multifamily properties... yet! Maybe you have some thoughts on if this is feasible.

I will absolutely put a pin in the NorCal Real Estate Mastermind meet-up. We're currently living in Idaho so attendance will be difficult in the near future but we'll have to plan a trip to Sac or make sure to attend a meeting when we move!

 Citrus Heights, my friend. That's where you should start. Or maybe Natomas but not a lot of duplexes available there.