Buy & Hold Historic Duplex in Sacramento

[Scott Scoville]

Just finished one of our bigger projects. We purchased this buy and hold historic duplex which faces William Land Park in Sacramento. We rehabbed the entire property and added an additional bedroom to each of the units. While we were a bit over budget and slightly over our projected timeline, we were still able to force appreciate the property by $100k. Interested in learning more about the Sacramento market, feel free to DM me.

Purchase Price: $882,250

Rehab: $260,000

Holding Costs: $60,000

Appraised: $1,300,000

Gross Rents: $6,800

[Scott Scoville]

Quote from @Anderson Banegas Cerrato:

Scott, this is incredible work! Turning a historic duplex into a high-performing asset while forcing $100k in appreciation is no small feat—seriously impressive.

I’m particularly fascinated by how you navigated the Sacramento market and managed the rehab process. Adding bedrooms to both units sounds like a game-changer for rent potential.

How did you decide on this property, and what’s been your biggest learning from this project? Also, would you say Sacramento still has strong opportunities for buy-and-hold investors like myself looking to get started?

I’d love to connect and learn more about your process!

Hey Anderson, thanks. We decided on this property primarily based on location. With it being on the park, there are very few properties that become available to purchase that are on the park. Most are single families in the $1.5-$2M range, so we new that a duplex would be would have a much higher ARV than other duplexes in the area. Also, with the size of the units, we knew that we could add a bedroom somewhere within the property. By adding the 3rd bedrooms, we were confident that it would increase rents and our valuation considerably. The schools in the area are really solid as well. The main challenge was that there was considerable deferred maintenance. The property needed a lot of work, and holding costs were high. But ultimately, with the property now stabilized, we feel like we should see solid rent and price appreciation over the next 3-5 years. And yes, Sacramento is a great market. Many different strategies to choose from.

What are you doing in Sacramento? Any projects currently?