All Forum Posts by: Daniel Zapata

Hello BP!

I'm looking at a property in Sacramento which seemed like a great deal at first: a 1 bed / 1 bath duplex in the front (fully rented at market), plus a house on the back of the property (the inside of the house is only framed, there was a fire and it was gutted).  There is supposed to be an alley which runs through the back of the property and all the adjacent properties, but multiple properties are encroaching on that alley, including this property.

Upon further investigation, this property also encroaches on the property to the left, plus it may also encroach on the property to the right.   My agent went to the city and they confirmed that the alley is not abandoned and is active as far as they know and there is nothing registered with them with regards to the encroachment.

1) Are there any ways to resolve the neighbor encroachment issues without altering the structure (i.e. buy that piece from the neighbor, set up a binding agreement)?

2)  Are there any ways to similarly address the alley encroachment?

3) Is this just a big can of worms not worth pursuing? My agent said that either neighboring property could try to claim their land back at any time, so I don't want to ignore the issue and hope for the best. Before the encroachment issues, I was looking at fairly straightforward BRRR which would cashflow very well.

Thanks for any advice,

Danny

Thanks for the warm welcome everyone!

@Medi Sarwary there are lots of up and coming areas in Sacramento, ideally I'd like to hit some of those, but some already seem cost-prohibitive.  I'm trying to start with4-plexes and go from there.  How about you?

Hello everyone,

I'm a Software Engineer from the Bay Area, looking to start investing in small multi-family units in Sacramento for passive income, but am also open to SFHs for flipping opportunities. Over the past couple of years I've been thinking a lot about how much of my tech salary has disappeared into the ether and decided I need to make my money work for me. After reading Rich Dad, I found some like-minded co-workers and invested in my REI education through this site, podcasts and various books. A couple of months ago, I started the process on a HELOC and assembling a team in Sacramento to make this a reality. I look forward to contributing and learning more from everyone on BP!

--Danny