All Forum Posts by: Bradley W.

Well said Amy, same plan for me. 

It's quite difficult to find. I first started looking for rentals in the Sacramento vicinity back in 2017. Made offers on a few duplexs/triplexs around Carmichael. Because of the influx from the bay area, prices have increased. Now any of the properties that "pencil out" to cash flow, I wouldn't feel comfortable driving to at night. Many of these tend to be in South Sacramento, Citrus Heights, Del Paso Heights, etc. This has been pushing me to start looking for SFH in nicer areas (and MFH out of state). However given the current state of the economy, I'm sitting on the fence for now.

@Jeff B. The property is located in Orangevale. And I'm definitely aware of the 1/1 limitations. Potentially could add a second bedroom onto the SFH in the future.

@Derek Daun .95% is quite close to the 1%, good job! The neighborhood surrounding this property is fair (Orangevale). There are a few particular locations around Sacramento that I have been avoiding, such as Del Paso Heights.

Hi everyone,

My name is Brad and this is my second post on BP Forums. 

I've been endlessly searching for duplex's and triplex's in Northern California for my first deal. So far I have found a couple possible listings with the help of my local Real Estate Investor friendly agent, Wes Blackwell, including this property below.

Just thought I would kindly ask for some additional eyes to look at this deal with me.

Triplex - SFH with a 2 Unit duplex on the adjacent property.

1 Bedroom - 1 Bath, roughly 900 SQ feet for each unit. Having 2 structures (with the SFH on its own property/yard) is an appealing aspect of this deal. The SFH will definitely have more upward potential for rent.

Purchase Price - $260-280k

I'm always jealous when I hear some of the low prices that are referenced on the BP podcasts & forums. The high prices are a hindrance here in California, however I feel that if I can make things work here (in CA), I will be able to succeed in other states in the future. 

Down Payment - 20% - $52,000 / $56,000

30 year conventional. Interest rate around 4.5%

Estimated Repairs - $12,500

Estimation, as this is my first deal I still have a bit to learn about this side of Real-Estate investing. Also, have not even SEEN the inside yet. This can go upwards or downwards from this figure (most likely up). I have the resources to either complete many of the repairs myself or with family connections. 

ARV - $340k

(Will have a more accurate figure soon)

Current Rent - $800 per unit x 3 = $2,400

Appears below market rent for the area. 

Based on my research thus far, the SFH should rent for ^$1150 easily with each side of the duplex going for around $1000. My goal is to achieve $3000+ per month for all of the units fully rented. This will require some repair and upgrading to achieve these prices but I am fully confident it will generate close to this. Additionally, there are strong forecasts for the Sacramento area in terms of rent prices increasing in the near future.

Property Manager - 8 / 9% of rent income - $250

I have decided very early on that I will not self-manage. I'm too nice for this job and cannot see myself demanding for a tenants payment if they request to pay a couple days over the due date. I feel as if I would always allow it (not good). Because of this, I have already found a great local source for Property Management.

Purchase Cap Rate: 9.85%

I ran all of these figures into the Rental Property Calculator here on BP, above is the estimated Purchase Cap Rate. I included 5% vacancy and 6.5% repairs/expenses. 

Please let me know of any initial thoughts that you may have solely based on the numbers. Obviously, there are a number of other factors that can affect the success or failure of an investment. After taking a look at this property yesterday, it has passed the (I would live there myself) test. The neighborhood appears much nicer compared to some of the past possibilities I have looked at.

I'm definitely excited and ready to start my Real-Estate investing career. Each time I listen to a BP podcast I find myself with even more motivation than before. 

Regards,

Brad Ward

Hi @Andrew Luong

Thank you, nice to see you too! And yes I remember our conversation. No problem at all, we're here if you ever need us again. I'm typically driving all over Northern California and my most recent RE photoshoot was in Santa Rosa.

@David Braut Awesome, I'm planning on making it to the next Roseville meetup. I hope to get the chance to meet you!

@Shawn Ackerman Hello, Thank you! 

@Samantha Soto I don't believe I know him, but I graduated from Bear River as-well! Graduated in 2009. And even I am regretful that I did not start sooner, especially around the time that I graduated. Little did I know of the opportunities that were to be had. I'm thankful that I have at-least been able to develop business fundamentals that will prove helpful in the future!

@Kim Stofan Thanks for the good luck! On my long drives to Sacramento State (1 hour 10 minutes each way), the podcasts keep me entertained. I've already met some very helpful investors, realtors, and brokers in the process. For example, @Wes Blackwell as seen on this page (:

Thanks for the welcomes everyone!

@Tim Kunz Definitely, looking forward to potentially meeting you.

@Victor Spencer II Thanks for the information! I would love to attend. If possible, send me a private message with the details and I will be sure to make it to the next one. 

@Gordon Cuffe Thank you! And it did snow this morning, but I'm not quite snowed in haha. I live about 5-10 minutes before Grass Valley so my elevation limits the amount of snow here. 

Hello everyone, 

My name is Brad and I am a new member from Northern California. I'm 25 years old and currently studying Economics at Sacramento State.  Currently, I run my own business and that is part of the reason I even developed interest for real estate investing. My business largely focuses on providing real estate photography and video. Initially we started solely as a drone photography business, however, seeing the amount of continuous demand for professional photography within the real estate industry, this was a no brainer. Many of my clients are actually investors themselves which is an awesome way for me to form contacts, while providing them with a beneficial service. 

www.aspire.photo

I have already set a couple goals, and I hope to own my first property before I turn 26 (4 months away). Recently pre-qualified, now I'm trying to decide which path to take, Fourplex vs Duplex for my first purchase. I'm looking to house-hack on my first deal. 

I would greatly enjoy the opportunity to speak to any of the many professionals on BP. There is some great knowledge on here that I have already absorbed. Would also love to connect locally!

Kind regards,

Brad