All Forum Posts by: Ramki D.

Hello all. Happy new year. I live in bay area (Dublin) and planning to visit Sacramento( first time ) tomorrow. I am planning to visit dr harton homes (express homes-Verona at 3815 Sunsetparkeway, 95834) just to get an idea. What do you guys think about this area? I see homes are priced anywhere between 350k-400k. Thanks in advance.

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Originally posted by @Saami Siddiqui:

@Ramki D. Personally, I am not a huge fan of Merced. Assuming, you buy a property for $300k you will be looking at rents close to $1800. I am basing these numbers off of what's on zillow. With these numbers, if you put 20% down, you will need close to $65k to close. Your mortgage will be close to $1150, plus taxes (~400), plus wear and tear (assuming a new house, lets say 10% of rent = $180) ,and plus (potentially) a property manager (~10% of rent = 180). All your costs added up, you are actually looking at a negative cash flow. If you are buying on cash, yes you will obviously cash flow positive (~$850) a month, but that's a return of just over 3%. If cash flow is what you want, there are far better options out of state.
If you are wanting to invest for appreciation, the only reason that may be fathomable to me in Merced, I am still not convinced. To me Merced is in the middle of nowhere, yes there is a UC there, but it's the worst one. I don't see that university bringing in the needed growth to the area that will cause property values to rise where your investment will be worth it. I feel like cities have a high upside if there is potential for business to move there and for jobs to grow, in Merced I just don't see that.
Between Merced and Sacramento, I would easily pick Sacramento. But before I invest in Sacramento, I would invest out of state.

@Saami Siddiqui other than bay area what states would be better for investment? Texas or north Carolina or any other states?

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Sacramento, California

Thanks Pooja for your suggestion and it is great option but as a first investor I would like to start with less risk option. Which area you think less risky Sacramento vs merced?

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Sacramento, California

Thanks for quick reply. I am doing my research and planning to buy a property under 300k( 4 bed, 2bath around 1800ft). Is there any particular area with in merced I should target? I have visited khovnanian homes at ( M st, w cardella rd intersection)and lennar homes at moraga. Not sure which location is better to buy? Thanks in advance.

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Sacramento, California

I live in bay area (Dublin, 2hr drive to merced).I am planning to buy a rental property in merced,ca. This is my investment property. I have visited merced 2 times in last one month. Some of my neighbors bought single family homes there( near merced college, aspire homes new construction)targetting for student rentals). I am not able to pull the trigger purely based on student rental population. I am considering Sacramento vs merced). Looking for suggestions on Which one is better to invest?

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Sacramento, California

All Forum Posts by: Ramki D.

Ramki D. has started 28 posts and replied 117 times.

Post: Is it good to buy a rental property in Merced,CA?

Post: New Construction REI in Sacramento - Natomas

Post: Which areas I should target for rental property in Sacramento?

Post: Is it good to buy a rental property in Merced,CA?

Post: Is it good to buy a rental property in Merced,CA?

Post: Is it good to buy a rental property in Merced,CA?

Post: Is it good to buy a rental property in Merced,CA?