Updated almost 5 years ago on . Most recent reply
Sacramento House Hack
My wife and I just closed on our 3rd investment property in Sacramento. Total of 5 doors now in the last 3 years and we both have full time jobs. So anyone else out there can door too!!!
I thought it would be beneficial to share with other members that are looking to do the same.
Purchase Price$389,000 negotiated with seller to $357,000.
The main house is 3bd/1ba 1400sqft in about 13,000sqft lot. The house does need a good amount of work that’s how we were able to negotiate so much off asking price in this competitive market.
The “guest house” which is permitted is about 650sqft 1bd/1ba built in 2008 much newer than the main house and is basically move in ready.
We originally intended to go with 20% down but after we went through home inspections we changed the terms to go with 10% down and decided to use the remaining toward renovation budget (going for open concept so taking down some walls, new HVAC and new kitchen).
Our mortgage along with utilities and other home related expenses is about $2300 monthly.
The guest house will rent for about $1100.
Out of our pocket after guest house is rented is going to be somewhere around $1200!! ($2300-$1100= $1200).
The lesson here is that we were paying $1330 to rent an apartment last month. Even in this competitive market there are ways to make deals work. I’ve been inspired by other posts and hope that this posts benefits someone out there :)
I would be happy to share more details if needed...
Thanks for reading,
Nick
Most Popular Reply
Great to hear @Nick Sandoval. Congratulations!!
Even I'm looking in the arden-arcade area. Almost closed in on a property in the same zip code and similar in condition to yours but much smaller lot and a lower price point. However, someone else beat our offer surprisingly as the seller did not even counter us. I would love to know how your experience goes with the rehab and rent. Good luck with this and your future REI journey :)