All Forum Posts by: James Peterson

I'm curious what you find in Sacramento. Thach has an amazing mindset, I would consider joining his program just for the inspiration and creative thinking. Why not start your own Mastermind group? What level of investor are you? 

Getting started is probably the hardest thing for most people wanting to invest.  Start now, every day you wait is delaying your wealth and happiness.

There is high demand all over the Sac Metro Area. I live in one of the areas you mentioned, and it is a good place to have a SFR rental. Condos are not a good choice. Once things normalize or swing the other way you want to have the best location possible for the highest Rate of Return. The best areas, and the right houses will give you a long term average 40%+ rate of return. Think highest demand, good side of town, close to downtown.

@Steven C. has a great point. And to add on to that, your rate of return on a good deal in a bad area that might cash flow a little will still be significantly worse than the rate of return on a property in a high demand area on the good side of town that has a little negative cash-flow in the long run. You can avoid crappy tenants this way too. Another insight, you can make any property cash flow with the right amount of down payment, you will get lower returns the more you put down though.  If your goal is cash flow only, you can buy in certain mid-west areas and typically cash flow quite well, but in the long term, your rate of return will be much less than here in California.  History does repeat, use it to your advantage!

Hi Austin, it is absolutely possible to BRRRR in the Sacramento area. Just remember, you can ONLY make it work on the purchase. What most are sharing is there are very few deals or opportunities with such little inventory. What is the chance of finding one on the MLS? Not good. Even the seasoned wholesalers are getting multuple offers and overbidding to nonsensical pricing for an investor.

You will need to get creative and probably expand your reach to find opportunities.  Knowing how to evaluate opportunities is the only way to know if a deal makes sense or not. It takes a lot of practice and hard work to learn.  A good agent should be able to help with after repair values and a good contractor can help you estimate repairs.

Think outside the box...

To accomplish you goals hear are some things you can consider, some based on Dave Ramsey and Mr. Rich Dad...

I think you need to build capital, repair your home, and fix your credit before you consider buying another property. What is your equity position on your home? What can you rent your house out for? Can you rent a room out in your house to save $ for rehab? Other ideas to fund your projects? Private $ loan? HELOC?

If your credit is an issue, make fixing it a priority before trying to buy another property.  

Going at this alone will be a long hard road, get help from other investors, family and friends.

Build a plan based on what you want to accomplish in 5 years and work backwards on how you will achieve those goals so you know what actionable items you need to work on week by week.

I think by far the best route for beginners to get into investing is the BRRR method. This requires finding off market deals with LOTS of upside potential. There are a lot of them out there, I see them every day.

Welcome Tom!  What are you after? Flips? Rentals? 

I specialize in finding off market opportunities for flip and buy and hold.  

Currently working on an off market portfolio of 5 duplex properties in South Sacramento if interested. In dire need of repair and new tenants.

Feel free to reach out to discuss your goals.  

Regards 

James

@Matthew Wu

As an experienced real estate broker in the South Bay, the best advice I could give you is to LIST your condo on with a Professional!  Priced right and marketed correctly, you will have professional representation, less headache and most likely net more money in your pocket.

If you really want to give FSBO a try, your best bet is to stage the home professionally, hire a photographer to take beautiful pictures... Market the property over multiple FSBO websites including Zillow, FSBO.com, Craigslist etc. Hold open houses with 8-14 signs, print professional flyers etc. etc.

98% of the calls you get will be Realtors trying to list your property, 1.5% will be investors, and the other half will be legit buyers. 

I've got some open house signs you can borrow!   

@gyanendra welcome to the area! I made a similar move 2 years ago from Santa Clara to El Dorado Hills and we love it up here. There are many great areas to consider in the region, each with a distinct feel and price point. Most areas are much more affordable than San Jose.  What are you looking for? trendy areas close to restaurants and downtown life...high growth areas for investing...good schools...close to recreation??? What are your goals for a home and investment?

Tahoe Park? Is this a wholesale @Joe Bertolino

Can you send me details

@Wes Blackwell

I totally agree those areas are on opposite ends of the spectrum but it's just an example. Something to consider if you've been in my shoes with multiple investments going into the great recession.  

A lot of folks just getting into the investment want to look at the cheapest duplex in C- or worse areas because that's what they can afford.  They buy it and then they run into tenant issues ect. and they have to sell it.  It's an endless cycle for those crappy areas and it's sad to see.

The MLS examples you stated are shocking, there is a large number of income properties sold in Sacramento, but I can't assume that's because 90% of multi-family in the region is in Sacramento.

To me, that means there are areas with A LOT of 2-8 unit properties because most commercial or 8+ unit property doesn't hit MLS.

Secondly, it could show there is a lot of turnover within those properties.  But I don't know for sure.  

I did look up 1 Roseville zip code and there are 3,251 apartment units so there must be an excess of 8+ unit mulit-family as there is very little turnover on MLS. 36% of housing is Non-owner occupied in Roseville so there are a lot of rentals, but I imagine a big spread between single family rentals and large multifamily.

I'm like everyone else on BP, looking for the best return on investment, securing retirement as you say, and trying to do it intelligently, and help others along the way too.

The purpose of this forum was to see what areas other investors are seeing, where they are focusing efforts and whatnot.  I guess it's understandable that nobody wants to share...