Hello, my spouse and I are looking to buy an investment property in Sacramento. We already have the financing worked out and are ready to move on it quickly. Originally I was thinking a duplex would be a good choice, but we have a max budget of about 400K and I don't see much for under that. We are now considering a condo or townhouse, as well as single family homes. Some of the condos/town homes seem to have better cash flow than the SFHs. I am wondering if all condo complexes allow rentals, or only some of them? I know in the Bay Area there is often a cap on how many condos in a certain complex can be rented. How would get this information so we could focus on the complexes that do allow rentals? We especially like Natomas, but are open to any area. Thank you!
@Katie Par be aware that homes in parts of Natomas require flood insurance. I found that is a big reason for the lower prices vs similar homes elsewhere in the Sacramento area
Real Estate Agent · Sacramento, CA · Member since 2015 · 394 posts · 259 votes
5y
your agent should be able to help you determine what's what with the condos but as said above you can also reach out to the HOA's to determine if this is allowed. The listing agent typically should have the HOA docs on hand too.
Property Manager · Bay Area-Greater Sacramento · Member since 2021 · 94 posts · 51 votes
5y
@Katie Par certain communities absolutely have restrictions on the number of units that can be operating as rentals at any given time. You often have to go onto a waitlist and will have your opportunity as other units are sold and taken of the rental market. As mentioned by some others you'll want to check in with the HOA on their limitations/waitlist etc.