Househacking in the Sacramento area

[Dain DaVirro]

Hey Everybody,

I'm looking to buy a househack in the sacramento area. I'm looking at small multi-family homes, 2-4 plexes. I check listings almost every day, but it is rare I find something that the numbers work. Other than in war zones, the best case scenarios I find would cost me about $300-$400 a month after rental income and PITI. Is this as good as it gets in the Sacramento area? The better deals I find are located in Rancho Cordova, Natomas, and occasionally South Land Park. Are there any other areas I should focus on looking?

Thanks!

[David LaPlante]

Thanks @Ben Howard

Here are some quick insights (lists) about the Sacramento County MFR 2-4 market:

16,044 properties designated MFR 2-4

5,056 owners live outside Sacto County

4,476 owners live outside of California

884 were sold/purchased in last 365 days (~5.5%)

2018 YTD: 343

2017: 943

2016: 863

2015: 812

4,520 have 100%+ equity

796 are underwater

12 are in Preforclosure

263 marked vacant by USPS

143 were purchased at auction by a trustee sale buyer

1,445 have had a death of joint tenant in last 365 days

Since 2016, 676 transactions were off-market - and scanning through those buyers a lot appear to be investors as they've done 2+ deals or their LLC name indicates investment orientation. Those would be your aggressive competition.

Only 67 were flips since 2016, as expected, this is buy/hold territory. The investors who did multiple MFR flips in that period are names that are routine and volume SFR flippers.

Hope this helps - only had 15 mins to investigate.