All Forum Posts by: Jeff Yates

@Tobias Falzone - Great question. I'm very interested to hear the responses.

@Jo-Ann Lapin - Thanks for the advice. I have started attending some of the local meetups. Luckily there are several in the area.

@Wes Blackwell - Thanks again for the insight. I am quickly figuring out that buy-and-hold in CA is a different kind of animal. I appreciate all the recommendations for local RE news. Would you recommend the Sacramento Business Journal as another way to keep a finger on the pulse of economic growth and recent RE development?

@Christine B. - Good luck to you too!

@Tobias Falzone - I've gone to the CCWB meetup by the Arden mall and the one up in Roseville. I was going to check out NorCal REIA next. I'd enjoy getting coffee sometime. I work up in Folsom.

@Jason Monroe - Sounds like an interesting event. Thanks!

@Wes Blackwell - Thanks for the perspective and the interesting data. I don't doubt that appreciation can be projected fairly accurately X months into the future, especially with an experienced investor's understanding of the data you've shared. However, after those X months, I don't want to count on continued appreciation to make the investment appealing. 

From what I've read here on BP, the general recommendation is to find properties that cash flow with full financing and 40-50% expenses, and take any appreciation as a cherry on top. Maybe this is totally unreasonable here in Sacramento. That's what I am trying to learn--whether assuming some appreciation is required to make the numbers work here, if investors here are fine with taking 0 cash flow and just building equity with loan amortization, whether it's just a bad time to get started and waiting for a downturn is required.

@Jason Monroe - Thanks!

@Wes Blackwell - Thanks for the Info! As a millennial that has lived in the area for 5+ years I can definitely agree that Sacramento is quickly becoming a very desirable city for young professionals. I personally know someone looking to move here from South Bay to escape the congestion and high cost of living. Unfortunately, being a new investor I am not quite comfortable speculating on rent and value appreciation, nor do I have the down payment to achieve higher cash flows. After factoring in additional operating expenses, I don't think the example above is too appealing for me. But maybe I'm missing something.

@Nate Pomeroy - Nice to know I'm not alone. Let me know if you want to grab coffee sometime.

@Tim Kunz - Thanks for the advice! My primary short term goal is to learn, network, and save enough to be in a good position for the next downturn. It would be great to find a deal before then, but I understand it is tough in this market for an inexperienced, non-cash buyer, so that's more of a stretch goal.

Thanks, @Kevin Hunter @Chris Mason !

Hello BP! My name is Jeff Yates and I'm a new investor living in downtown Sacramento. I am interested in purchasing buy-and-hold multifamily properties. I would prefer to invest locally, as community involvement is important to me. My goal is to build a portfolio of rentals large enough to cover most of my expenses and contribute significantly to charity.

I am currently trying to learn as much as I can from the BP blog posts, forums, and podcasts, as well as a few RE books. I have also started attending some local REIA meetings. I am very interested in connecting with other multifamily investors, especially in the area.

Cheers!