New Construction REI in Sacramento - Natomas

[Hugo Luna]

Is anyone actively investing in new SFH construction around Natomas or West Sacramento? Since a whole house lease is unlikely to cashflow, I am analyzing short term room rentals and Airbnb options. However, it looks like there is already a hot Airbnb market in this area, so I am curious to know if this strategy is working for those that are participating.

[Joe Bertolino]

I do know several investors that are doing well with short term rentals.  Hotel construction has not kept up with business and population growth.   There are many times midweek downtown and near Folsom where all hotels are sold out. 

[Hugo Luna]

@Joe Bertolino Is there a particular area that you see these short term rentals working well in? 

[Joe Bertolino]

The northern side of I5,  95834.   As of this moment there is such a shortage that you don't have to be too specific.   I know you can get new construction 4/2.5's for under $390K.   They rent for $2600 monthly or $3500+ Airbnb.  

[Jim Walker]

I concur with Joe. His numbers are good. Rental homes are in high demand. 

I don't do airB&B. Just from Joes numbers though, the thought scares me. How much of that extra $900 a month (or $30 per day) is chewed up by the necessary furniture, appliances, utensils, linens, appointments, maid service, B&B and visa card commission, and hotelier paperwork, increased maintenance and cleaning due to frequent turnover, vacancy factors during turnovers. I have run motels, apartments, rooming houses. The revenue per square foot can be higher, but also the operating expense.

[Yaohua Li]

Sacramento limits short-term rental to a number of days per year, unless the owner lives in the property.

So no way for investors to legally do AirBnB rental in Sacramento (unless you go outside of city limit)

[Kumar Gaurav]

I just started exploring Natomas region please let me know if there are any investor friendly RE agents.

Thanks

[Hugo Luna]

@Kumar Gaurav, any luck finding deals in Natomas?

[Ramki D.]

Originally posted by @Kumar Gaurav:

I just started exploring Natomas region please let me know if there are any investor friendly RE agents.

Thanks

 Any luck @Kumar, Gaurav? I am also look at natomas and  I am planning to visit tomorrow (dr horton homes)

[Kalpesh Kamdar]

I have contacted a potential RE agent in natomas who has sold several invested properties in the last 6 months. I m talking to him tomorrow. Are there any specific questions you guys want it to cover

@Hugo Luna @Kumar Gaurav @Ramki D.

[Hugo Luna]

Hi @Kalpesh Kamdar. I would be interested in knowing if there are any rental restrictions outlined in the CCR's for the particular community you are looking into. Also interested in knowing what the average per room rents look like, as well as the whole house rent.

Thank you!

[Arun Arun]

@Kalpesh Kamdar@Kumar Gaurav @Hugo Luna @Ramki D. Did any of you end up buying in Natomas area?

What did you find out regarding investment in the new Natomas developments regarding rental demand, cashflow, future appreciation ?

I was recently told about developments in this area and wondering if it is better to buy here VS other suburbs of Sac .

[DJ Dawson]

west sac and natomas are 1 & 2 in my opinion for developing areas in Sacramento.  bought my house in west sac fall '17 been house hacking ever since and love it here