Hello from Sacramento, CA!

[Ryan Russel]

Hello Everyone!

A lot of the high-level details about me can be found in my profile, so in an effort to not be redundant please check there if my post description is of interest.

I started researching real estate investment fairly heavily last summer. My New Years resolution was to go from studying theory to connecting with experienced investors to better understand my options. If you have an idea to pitch, I'm open to hearing about it. 

I currently am considering investing where I live in the Sacramento area, preferably a SFH with a large yard to build an ADU (thanks, AB68) to get my feet wet. My overall goal is building equity and the idea of a new build-- despite lower reward-- interests me for it's safety (e.g. foundation warranty for 10yrs). I also recognize that it might be wise to invest out of state with the same idea and use a property manager, but picking a city to focus on is daunting. I do agree the BRRR idea is most appealing, but finding deals seems cumbersome and requires experience to get right.

I will own at least one door by the end of the year and if it goes well, will rinse and repeat as I increase my expertise in the method. Any wisdom you may have on where I should consider heading -- or who I should speak with that has more experience-- is greatly appreciated. 

Thank you in advance.

[Cassi Justiz]

Hey @Ryan Russel, 

Welcome to BP! I'm not incredibly familiar with Sacramento, but would it be possible to house-hack there? If you could find a house-hack situation with some room for value add that could be an incredible option for you. 

New construction has great upsides because of some of the builder warranty features, but typically this is not the space where you see equity build very quickly. New construction homes can be great for lower maintenance buy and hold investments, but they're not necessarily the best equity play. 

If you decide to look out of state, there are a ton of markets that could be a great fit. I would start by looking for places with low taxes, job, population and economic growth as well as overall market stability. I would narrow down a handful of places and then see which one will make the most sense for you. Talk to some people that are actively working in those markets and see what they have to offer and whether those options fit your idea of what you are looking for. 

Good luck!