1st-time buyer: Wanna know what factors to consider for city

[Saman Jafari]

I am trying to decide in which city I should invest to get a rental property. I have considered the below factors that resulted in choosing Sacramento as the place. I just wanted to get others' opinions on it to avoid any pitfalls:

1- the sale price range

2- sale-to-rent ratio

3- proximity

For example, looking into the Indianapolis's market, it seems that it has a much better sale-to-rent ratio, however, since it is very far from me, it makes me concerned, while Sacramento, though it is not super close, it is like 3 hrs drive from me, and I thought it would make it a bit easier for me in case something happened and it needs my presence there. 

I'd like to hear about your comments, to see if I am thinking correctly, and also what I need to consider before start reaching out to the real estate agents in the area. 

[Sherwin Gonzales]

Hi @Saman Jafari,

What types of rental properties are you interested in investing in Sacramento? SFH, duplexes/ triplexes/ fourplexes, commercial mf, etc? I invest in commercial MF in Sacramento and have been having much success. We like the factors you mention...the sales price range is more affordable than in "SF proper." We find tremendous value in value add/ value management properties where we can increase the NOI and rent at market rates. Being based in San Francisco/ East Bay, we also like the proximity for us in that we can easily access our properties and meet w/ agents, property managers, and contractors. Quality control is very important in our business! I hope this helps. Feel free to contact me if you have any other questions or if there's something I can do to help! Cheers!