All Forum Posts by: Chris Vail

@Kyle Marek are you familiar with the area that this house is in?  Are you familiar with the Sacramento Market?  your expense estimate is extremely low, but will also be determined on how you are planing to run this unit.  the Rental market is very hot right now, and I would be wondering what the previous owner did in the last year to warrant the 50,000 increase in price and why are they selling after a single year?  From the pictures the units look very run down so it will really be determined on what kind of tenant you are looking to attract.  2/1's in the area range from 900 - 1295 but the higher priced ones looked to have been recently remodeled completely, and based on this depending on the current leases and tenants I would aim at a lower gross rent income unless you are planing to put a lot more money into fix up.

Well written post @Wes Blackwell, I can attest to this very thing happening in Sacramento. 2 years ago I bought a SFR at 130k in Sacramento dropped ~40k in fixing it up and now said house is worth ~230k.

Some great advice from @Wes Blackwell up above.  I would also stretch your thinking to look beyond just 2 years.  What is your 5, 10, 15, and 20 year plan how does your 2 year plan fold into your 5 , 10....  You get the idea, planing for only 2 years is not the best way to set up your life in real estate. 

@Hugo Luna I will echo what most of the sacramento folks above have said... Pass on this "deal" as it is not really a deal.  I had to look at 30+ properties (actual visits not counting all of the ones that I researched via computer/agent) before I landed my first deal.  Do not get discouraged keep digging and looking and you will find a property that makes sense, eventually.  Especially when using bank financing which I also did for my first property as you are at a disadvantage to the cash buyers in the market.

@Ali Samee there are a few in the area.  Their is one in Roseville that @David Oldenburg heads up, and there are ones put on by @Al Williamson as well.  If you look at either of their posts it would be a good place to get started.  There are few others in the area as well but you can just do a google search to research them all.

I would echo what @Account Closed have stated above and add just some more to think about.  Will you be managing the property your self or have property management as this would take into affect how often you would need to be in the location?  Ultimately you need to look at this from a lens of is this the investment for me, not do I want to live there.

More than likely no unfortunately. My family and I just moved a week ago and I am still trying to get the house put together and with a 2 year old I am attempting to get as much done as quickly as possible.  The move took us out to Fair Oaks which creates a very questionable timeline when you carpool with the wife and child to get back downtown for a 6:15 meetup time :(. 

@Brennen Cook Glad to hear you are at the end of the run on this project, I just moved into our latest project since it was for our next personal residence and will be needing to do a detailed write up here on BP for all of the learnings I went through for it.  Just need to get internet at the house so I can sit down and write post after post lol.  Let us know how you end up on this.

@Account Closed I am not sure on if I will be there, we recently moved and I am not sure how I am going to swing getting back downtown after getting out to Fair Oaks at about the same time as the meetup starting.  If I can swing it I will be there but right now I am likely a no go on the weekday meetups for the next couple of months unless they are much later at night.  I will be there in spirit with everyone. 

@Samir Pathak Since the property is listed on RedFin for 338k I would say you are being taken advantage of on a "wholesale" deal.  I have looked at the property and in no way is 15k going to bring that kind of return.