New investor in Sacramento, California

[Jeff Yates]

Hello BP! My name is Jeff Yates and I'm a new investor living in downtown Sacramento. I am interested in purchasing buy-and-hold multifamily properties. I would prefer to invest locally, as community involvement is important to me. My goal is to build a portfolio of rentals large enough to cover most of my expenses and contribute significantly to charity.

I am currently trying to learn as much as I can from the BP blog posts, forums, and podcasts, as well as a few RE books. I have also started attending some local REIA meetings. I am very interested in connecting with other multifamily investors, especially in the area.

Cheers!

[Wes Blackwell]

@Jeff Yates

Welcome to Bigger Pockets! You're in the right place!

Sacramento is a great opportunity for multifamily investing right now. We're projected to be the #4 hottest metro market in the nation this year with 7.2% appreciation and a 4.9% increase in sales growth. We're also projected to be the #1 rental growth market in the nation with 10% growth this year, and 8.5% growth next year. 

A large part of the reason for this is the massive migration of Bay Area transplants who are looking for more affordable living. I've written about this migration pattern extensively here on BP:

https://www.biggerpockets.com/forums/621/topics/396725-millennial-migration-to-sacramento-2017---here-comes-the-rush

Every week I analyze every single 2-4 unit multifamily property from Placer county all the way down to Merced, and here are the numbers you can expect from the better performing properties here in Sacramento county:

PRICE: ~$306k
25% DOWN: ~ $76.5k
MONTHLY RENTS: ~$2,250
ANNUAL RENTS: ~$27,000
PITI @ 5% w/ 25% DOWN: ~$1,640
PITI CASHFLOW MONTHLY: ~$610
PITI CASHFLOW YEARLY: ~$7,320
1% TEST: 0.74%
GROSS ANNUAL YIELD: 8.92%
PITI CASH ON CASH RETURN: 9.95%

If you ever have any questions, or simply want to reach out and connect with other local investors and real estate professionals, simply join the conversation already going on in the local forums here on Bigger Pockets for Sacramento:

https://www.biggerpockets.com/forums/621-sacramento-real-estate-forum

Feel free to reach out if you have any questions about the Sacramento market, and best of luck!