All Forum Posts by: Frank Lienert

It's going to vary wildly id assume. From what I gather gone are the days of the quick minimal flip of finding a bargain doing "minor" rehab (paint, carpet, maybe a kitchen/bathroom). The flips Im seeing are way more substantial- buying smaller homes in A neighborhoods and doing major work (damn near new houses) with room/bathroom expansions- and thus costly. My neighborhood 95819 rehabs are costing 150-200+k easy. 

@Wes Blackwell

Assuming your correct that most millennials are looking to bypass the starter home entirely and go to the "forever" home, what do you see as the long term implications of that on the larger market?/ Odds of that happening in any significant numbers. 

Sacramento/Northern California 

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Quote of the year Joe! "get tired of class C tenants doing the types of things class C tenants do." Still laughing about that.

Gotta disagree that Sacramento was, is or ever will be cool though. Just my very strong opinion. Solid place to invest with great long term RE returns but I can't say this place will ever be anything more than a massive "small town" I think at best it becomes a glorified Bay Area Bedroom Community. Again just my very opinionated two cents but thats the great part about business, don't have to like or truly believe in something to profit from it. 

@Gordon Cuffe Could I also receive some recommendations in this area? If so I'll message ya. Thanks. 

I've been following the mill development fairly closely and was just out to the site last week (I went late and didn't have time to do anything other than grab some brochures and poke around) and will be checking the properties out more in depth later. 

The properties are in an interesting location, ideal in some ways (proximity to downtown) less so in others (that stretch of Broadway is in need of commercial redevelopment- which is in the works). The development itself will have some minor retail in it (a market etc) which will draw. I personally think it will draw that certain demographic who wants to be close to the action, doesn't want the closer urban living of downtown and yet can't afford/doesn't want a SFR on bigger lot like you'll find in the surround area to the South. As such I can't see these getting the premium rents landlords on other side of highway 50 are getting.

@Tim Kunz is precisely right about the HOA being the determining factor. To my knowledge there's nothing online about that. I'll inquire about it when I get around to visiting the site and get back to you if you'd like.

My two cents, if the Mills is right for you will depend on your objective. I don't think anything would cash flow at the mills without a sizable downpayment but the potential for very good appreciation is there. 

@Joe Bertolino So reading between the lines on your last post it sounds like you're saying you think the Sacramento market won't level off or come down anytime soon (12-24 months)? Perhaps Im reading too far into your comment. 

@Account Closed I don't have hard data organized/compiled. In my original post I mentioned how I had noticed higher end homes and upper mid-range homes with reduced prices. In light of several years of increased sales prices most people who follow a market for so long certainly would take notice when you start to see numerous homes with reduced prices.

I wish I could say how much the Sacramento market is overvalued. The fact is the Sacramento region is still a government area. Tons of people make their living from government jobs (city, county, state and federal) or govt related industries. While there's been a shift of late with more private enterprise it's still a government town. Government salaries, for all their benefits, usually don't keep pace with the private sector. 

As for the "storm" to come. I don't know if it'll be a drizzle or a deluge (I'd like to hear others predictions on this one). But I'd be willing to venture it'll be caused by one, or some nomination of the usual suspects: higher rates, economic downturn...

@Tim Kunz Agree on the plateau and hopefully for a pullback. Im traditionally leery and call BS on the typical election year, economic doomsday talk. This time however I feel like there's potentially a larger storm brewing, encompassing multi-facets globally. Whatever will pan out remains to be seen obviously.  

Personally, I think the Sacramento area is overpriced almost all around. I'll keep looking for deals but I don't feel the slightest pressure to move. It might be overly cautious but I'll sit and watch the market, continuing to save, and when the market/time is right I figure I'll be that much further ahead with a larger downpayment and income from my first property. 

@Gordon Cuffe Interesting stats. Curious though, how exactly is approximately 3,000 homes determined to be the point at which things will shift?