All Forum Posts by: Hugo Luna

@Joe Bertolino Is there a particular area that you see these short term rentals working well in? 

Is anyone actively investing in new SFH construction around Natomas or West Sacramento? Since a whole house lease is unlikely to cashflow, I am analyzing short term room rentals and Airbnb options. However, it looks like there is already a hot Airbnb market in this area, so I am curious to know if this strategy is working for those that are participating.

@Jon Quijas My 1st rental is actually in Woodland, CA, which is about a 20 minute drive from Sacramento. Not much multi-family goes on the market, and when it does it sells rather quickly.

 We also ended up purchasing a home at The Good Project in West Sacramento and house hack. I've found that room rentals work well in this area. 

@Pavan Sandhu Of the two communities, is there one that you feel is in a more desirable location? I know that the West Sacramento riverfront is undergoing a lot of re-development, so although it may not be great today, there is a lot of potential. I am not as familiar with the community surrounding The Mill. 

Hello BP! 

My partner and I have been researching several new home communities in the Sacramento region for the past couple of months and finally narrowed our search down to (1) The Good Project in West Sacramento, CA and (2) The Mill at Broadway in Sacramento, CA. Both communities are build by Bardis Homes, but in two very distinct settings just off of "the grid" / downtown Sacramento.

(1)  The Good Project by Bardis Homes in West Sacramento (total units: 27 single family homes)

• List Price: $466,203 (closeout phase pricing)
• 3 Bed/3 Bath (3-stories high)
• Square Footage: 1,880
• Amenities: River Walk Trails
• Other Notes: Homes have medium-sized backyard
• Community Completion: April 2018

(2)  The Mill at Broadway by Bardis Homes in Sacramento (total units: 800 single family, penthomes, multi-family)

• List Price: $430,000 (pre-model pricing)
• 2 Bed/2.5 Bath
• Square Footage: 1,045
• Amenities: Master Planned Community with a public market, parks, & trails. 
• Other Notes: Home was "mini-backyard" / patio space; Neighboring land was recently re-zoned for residential use
• Community Completion: over the next 3-5 years

We are currently looking for insight from The BP community, regarding appreciation potential in each scenario, or potential room rents at each location. If you are familiar with these projects and the development that is going on around them, we would love to hear your thoughts and opinions! 

Thank you!

@Joe Bertolino do you mind sharing what your offer looks like?

@Pavan Sandhu Looking to purchase as a secondary residence and rent or airbnb the other 2 rooms. The Good Project is on it's last phase, so pricing is on the higher side. However, I do know Bardis homes just filed a Design review for a new community in the same area, which could bring property values up even further as the development progresses. 

What projects are you working on?

Any investors buying new product in the West Sacramento or Downtown Sacramento area?

I am particularly interested in infill developments like, "The good Project," or "The Creamery," because they have lots of appreciation potential. Current market conditions are allowing for hefty incentives and kickbacks on purchase price, which makes the deals sweeter. I am moving into the unit and will have 1-2 bedrooms available for rent, so I am evaluating the property differently than I would on a 100% investment property.

Any general market feedback on these developments would be appreciated!

Hello All,

It's been almost a year since this post, but I was actually visiting The Mill at Broadway again this weekend. Property values have gone up significantly, so it is a bummer that I did not make a move last time. However, this time around I was looking at the new releases as a possible primary residence with option to rent out some rooms. Specifically, I was interested in the cottage plans which are detached single family homes (3 bed/2 bath at 1,300 sf). Price point is hight at around $477,000, but overall community is really going to be an amazing development with nothing similar to comp to. I'm a millennial, and this community really captures everything my generation is looking for.  I assume rents have also skyrocketed in this area. 

Anybody have updates on rents for this community?

Thanks!

Thank you to everyone who has contributed to this post! 

Although Airbnb proves to be very lucrative, it is clear that many local jurisdictions are opposing this form of income generation. That's a shame for investors, but I could also see why many locals might oppose the business model.

For those of you in Sacramento,  are there any particular neighborhoods known to have high concentration of Eichler homes other than Land Park? 

@Account Closed Some background on my duplex... 

Asking Price: $345,000

Sales Price: $328,888 

Closing Costs: $0 because I received $5,000 credit from seller and $3,288 credit from agent

Perks: Seller paid for 2 year of home warranty

Down Payment: 15% equal to $49,333

Property Upgrades after COE: $7,000 (new kitchen, ss appliances, and cosmetic upgrades)

Market Rent Prior to COE: $1,200 per unit

Market Rent after Upgrades: $1,400 per unit

Final Lease Terms for Unit 1: $1,400 monthly rent for 12 months

Final Lease Terms for Unit 2: $2,050 monthly rent for 12 months, with option for month to month. 

The lease for Unit 2 was negotiated in partnership with AAA, who is providing living expenses for a family that lost their home to a fire. AAA was looking for quick move in on this family, and willing to pay top dollar for a home vs paying high premiums for hotel rates.

Total Rent Collected: $3,450

PMI & Tax: $1860

Owner paid utilities: $90

Property Management: Self Management

Repairs: Under warranty for 2 years, but deductible for work orders is $75, so deduct $75 assuming 1 bad call per month. 

Monthly CashFlow: $1,425