Market Recommendations in Sacramento County, CA

[Brad Cogswell]

Hey all,

I'm going to head up to Sacramento this weekend to get a better grasp of the market. I've got the county mapped out and have highlighted areas that I know I want to visit and understand, but I wanted to get some recommendations from investors in that area. 

I am looking in particular to employ a BRRR strategy as opposed to flipping. Would love to hear if there are certain town/cities within the county that I should make sure to visit.

Also, if anyone is up there and would like to grab a beer or coffee at some point, let me know, I'm buying.

Brad

[Wes Blackwell]

@Brad Cogswell,

The area of Sacramento offering the most opportunity to investors is the Oak Park area, which essentially everything East of 99, West of Stockton Blvd, South of 50 and North of Fruitridge Rd.

It's what you'd consider an "up and coming" neighborhood, meaning it really used to suck, and in some parts still really does suck, but they city is investing a lot into the neighborhood to try and gentrify the area and so investors are jumping on the bandwagon and flipping the hell out of that place.

Just Google "Oak Park Gentrification" and read all the news articles.

But buyer beware, it's sort of a street-by-street basis. Let someone else take the risk in the more 'shady' areas and try your BRRR strategy towards the north end just south of 50 or on a street where several other flips have taken place.

Some properties in there are going for way more than they should, which might allow you to get in and get a great cash-out number once the rehab is complete.

The rents will be higher on the northern side, and will take a dip as you head south into the heart of the Oak Park area. Be sure to drive this neighborhood thoroughly before pulling the trigger.

Another area to consider is the Del Paso Heights / Old North Sacramento area, basically all of the 95815 Zip code.

They are also trying to gentrify that area as well, but it's second in line to Oak Park, so you won't get as much help with the boost in property values down the road but you'll also face less competition from other investors and rehabbers.

Once again, it's a street by street basis in this area... For example, I found a remodeled duplex for $259,000 and rents over $1,000 per side that I was considering buying, but it's directly across the street from the grimiest apartment complex you've ever seen.

There are some very knowledge Sacramento investors on here, so hopefully they'll chime in with some other neighborhoods to consider or can expand on Oak Park and Del Paso Heights.