New resident to California

[Peter Stephan]

Hello!

I am working to build enough capital to own my first rental property! I'm interested in buying multi family homes and fixer uppers to build equity around flourishing areas around Sacramento and the Bay Area.

[Wes Blackwell]

Hi @Peter Stephan! Welcome to BiggerPockets! You're in the right place!

I'm a Realtor in the Sacramento area who specializes in working with investors, and I can tell you there is much opportunity to be had here! Rents in Sacramento continue to rise, along with housing prices, so we're still probably several years off from the peak. That means cash flow and growing equity are ripe for the taking.

Perhaps some fellow investors and agents from the Bay Area will chime in, but I probably wouldn't advise starting out in such a high priced area if this is your first rental. Not only will it take more capital to work with, the prices are so high you might not be able to make the cash flow work.

Plus, the area is much more susceptible to a housing bubble, and while people will have their arguments about that, I wouldn't advise a new investor to get tangled up in the possible risk when you can make it work elsewhere for much cheaper.