Anatomy of a deal - first rental in Sacramento

[Avtandil G.]

Closed on my first rental SFR in Sacramento area (3/2/2 fixer upper in Folsom)

Purchase price: 350k 

Seller credits: 20k

Down: 130k

Renovations: 40K

Loan: 200K @ 2.625%

Just assessed @ 440k. Putting it for rent @ $2,100/mo - 8% CoC post all expenses / reserves

i think i'm done with SFRs in this area - will be looking for 4-plex next

[Avtandil G.]

@Chaithra Kumar - can't really tell what the appreciation may look like in the future here - i will defer to locals like @Wes Blackwell. I do see a lot of trade job workers moving to the outskirts like Tracy, where the properties have bubbled up in prices quite a bit recently, but I'm not sure how much migration is happening into Sacramento, which is what probably will drive appreciation going forward

@Derek Daun - the loan is 7/1 preferred portfolio with my long-time lender. but the rate was also locked in before the last round of hikes...