1st investment. Moving to Sacramento. Buying duplex and do househacking. need advice!

[Sangwon L.]

Hello!

This is my very first post on BiggerPockets. I have been reading the forums without an account, and I think it’s now time to step up and ask for some advice from experts!

My fiancé and I are planning to move to Sacramento from the Bay Area. This move will be purely for our first investment in real estate. We have been reading The Multifamily Millionaire by Brandon Turner and are very 100% sure about buying a multifamily property as our first investment. We are looking to buy a duplex (possibly a triplex or fourplex, if feasible) using an FHA loan. We plan to live in one unit and rent out the others. Hopefully, this first investment will launch our journey in real estate.

Here are some criteria we have in mind:

• Not in downtown Sacramento
• Class C+ or B location, since we will be living in one unit (we just want a safe location)
• Units with shared walls, not ceilings
• Separately metered
• Fairly renovated or well-maintained (not a fixer-upper, but if one unit is renovated and the others need some work, we would love the experience of fixing and renovating)

Can you think of any other factors we should consider? We are very flexible and would highly appreciate any suggestions or recommendations you might have!

I would love to speak with local investors, agents, and lenders in Sacramento. Please let me know if you are open to discussing!

Thank you for all your support!

[AJ Wong]

Quote from @Sangwon L.:

Hello!

This is my very first post on BiggerPockets. I have been reading the forums without an account, and I think it’s now time to step up and ask for some advice from experts!

My fiancé and I are planning to move to Sacramento from the Bay Area. This move will be purely for our first investment in real estate. We have been reading The Multifamily Millionaire by Brandon Turner and are very 100% sure about buying a multifamily property as our first investment. We are looking to buy a duplex (possibly a triplex or fourplex, if feasible) using an FHA loan. We plan to live in one unit and rent out the others. Hopefully, this first investment will launch our journey in real estate.

Here are some criteria we have in mind:

• Not in downtown Sacramento
• Class C+ or B location, since we will be living in one unit (we just want a safe location)
• Units with shared walls, not ceilings
• Separately metered
• Fairly renovated or well-maintained (not a fixer-upper, but if one unit is renovated and the others need some work, we would love the experience of fixing and renovating)

Can you think of any other factors we should consider? We are very flexible and would highly appreciate any suggestions or recommendations you might have!

I would love to speak with local investors, agents, and lenders in Sacramento. Please let me know if you are open to discussing!

Thank you for all your support!

Hi Sangwon and welcome! Such a fantastic book, FHA financing is a highly effective house hack and can be combined with a sellers concession or up to 3% with 3.5% down to reduce or completely cover closing costs. I'm an investor RE broker focused on multi family and luxury STR's feel free to DM me to connect. Definitely check in with my strategic lender since 2003 @Joseph Chiofalo they have some exceptional FHA programs and he is one of the best in the business. Good luck! 

[Noah Laker]

Hey Sangwon, I'm a local broker and investor in sacramento, and I manage 100+ investment properties, mostly Airbnbs. 

Multifamily house hacking is a CLASSIC strategy and very rewarding. It's so simple, anyone can pull it off, and many of my clients are first time investors employing the exact same strategy.

I think you already have it pretty much figured out, but I might suggest incorporating some kind of creative housing in the mix to increase revenue, like STR/MTR or renting by the bedroom. These are much needed products with more active management and the revenue shows.

SO basically, buy a 2-4 unit, live in one unit, and rent the others creatively. This is by far the best strategy for a new investor to get in the game IMO. I'll shoot you a DM!

[Joseph Chiofalo]

Hi Sangwon, 

Welcome to the community- 

There a lot of good professionals and resources here on BP to learn and grow. 

Do you currently own any real estate? 

There are any ways to structure the financing.  Lenders offer many flexible solutions to help investors secure a mortgage. 

[Daniel Hyman]

Aside from speaking with local investors, agents, and lenders in Sacramento, I would recommend speaking with local property managers. They are usually a wealth of information about market conditions.

[Scott Scoville]

Quote from @Sangwon L.:

Hello!

This is my very first post on BiggerPockets. I have been reading the forums without an account, and I think it’s now time to step up and ask for some advice from experts!

My fiancé and I are planning to move to Sacramento from the Bay Area. This move will be purely for our first investment in real estate. We have been reading The Multifamily Millionaire by Brandon Turner and are very 100% sure about buying a multifamily property as our first investment. We are looking to buy a duplex (possibly a triplex or fourplex, if feasible) using an FHA loan. We plan to live in one unit and rent out the others. Hopefully, this first investment will launch our journey in real estate.

Here are some criteria we have in mind:

• Not in downtown Sacramento
• Class C+ or B location, since we will be living in one unit (we just want a safe location)
• Units with shared walls, not ceilings
• Separately metered
• Fairly renovated or well-maintained (not a fixer-upper, but if one unit is renovated and the others need some work, we would love the experience of fixing and renovating)

Can you think of any other factors we should consider? We are very flexible and would highly appreciate any suggestions or recommendations you might have!

I would love to speak with local investors, agents, and lenders in Sacramento. Please let me know if you are open to discussing!

Thank you for all your support!

Hey Sangwon, welcome to BP. Lot's of BP members in Sacramento. I'm an investor and investor focused agent in Sacramento. Just DM'd you. Looking forward to connecting and hearing more about your goals.

[Sangwon L.]

Quote from @Noah Laker:

Hey Sangwon, I'm a local broker and investor in sacramento, and I manage 100+ investment properties, mostly Airbnbs. 

Multifamily house hacking is a CLASSIC strategy and very rewarding. It's so simple, anyone can pull it off, and many of my clients are first time investors employing the exact same strategy.

I think you already have it pretty much figured out, but I might suggest incorporating some kind of creative housing in the mix to increase revenue, like STR/MTR or renting by the bedroom. These are much needed products with more active management and the revenue shows.

SO basically, buy a 2-4 unit, live in one unit, and rent the others creatively. This is by far the best strategy for a new investor to get in the game IMO. I'll shoot you a DM!

Thank you very much for sharing the different ways of increase revenue. I did not think about renting the other unit as MTR/STR. I see a lot of duplex listings, but I couldn't find triplex or fourplex! I will message you!

[Sangwon L.]

Quote from @Daniel Hyman:

Aside from speaking with local investors, agents, and lenders in Sacramento, I would recommend speaking with local property managers. They are usually a wealth of information about market conditions.

 I have not thought about speaking with local property managers. Thank you for the advice!