Questions on Potential Deal in Sacramento

[Kevin P.]

Good Morning BP,

Thank you all for looking at this post! I am a buy and hold investor, looking at a quad in Sacramento (area code 95841) and the numbers look pretty good ($165 per door and 10.27% CoC at asking price.) Property is also HOA so capex, repairs and maintenance should be insignificant. I just had some questions for the more experienced investors, particularly in that area.

1. Property has been listed for about 5 months, asking 329,000.  If I decide to offer on this property, would it be out of line to come in 15-20% below asking price? (Needless to say the numbers are even more attractive with a considerable discount.)

2. The school districts don't seem so great according to GreatSchools and while the crime doesn't appear horrible, it also doesn't look great either.

3. What kind of vacancy should I be expecting in this area? I'm currently assuming 5% but I could be way off base with that as I don't live there.

Could any experienced investors provide insight into this situation?  This will be my first investment property and it absolutely MUST be a winner in order to set the tone for my future business.

Again, Thank you all for looking and I look forward to your responses!!

Best Regards,

Kevin P