Househacking in Elk Grove, CA (95624)

[Pat Luc]

Hi BPs,

My wife and I are looking to buy a SFH in Sacramento area as our first house-hacking property. Since we plan to convert garage / add an ADU to improve the cashflow later on, we look for houses with large lot, ideally with a detached garage. We come across zip code 95624 in Elk Grove, specifically the area east of freeway 99 and south of Elk Grove Blvd. This area attracts us because it has lots of older home with large lots, very close to growing area of 95757 (Costco on the west side of CA99) and minimal mello roos.
We would love to hear your opinion on this area:

1. How is the rental market here comparing to nicer area like Sheldon or Laguna?

2. ADU friendliness. How ADU rental units compares to apartment in this area? We see that ADU is getting very popular in Sacramento (multiple permit per month) but not so much in Elk Grove (3 ADU permits in the last few months).

Thank you very much for your inputs!

[Kelsey Bailey]

Hi Pat, we have a large standing of rentals in Elk Grove so I am familiar with the area. The side you are looking at of course as you mentioned is older so rents can be $100-$300 lower per month dependent on the condition, size, etc. That being said in terms of desirability you can't really go wrong in Elk Grove. ADU's and converted garages however have not become an extremely common practice in this area yet, and in many other areas of Sacramento, so we tend to find it takes a bit longer to fill both units. People can be fairly turned off to the idea of strangers living so nearby especially if yards are shared. Most commonly we see the smaller side/unit fill first and then the main larger home will sit for a while until someone who is comfortable with the setup qualifies. If you have any particular addresses you are looking at I'd be happy to get more specific on rental rates with you.