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Contributor
SeaBuy
Posts: 35
Registered: ‎01-21-2011
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What is the best area to buy investment property?

I would like to buy investment properties in the Sacramento area. What is best area to own an investment rental?

 

Regular Visitor
reelestaterooki
Posts: 8
Registered: ‎07-02-2009
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Re: What is the best area to buy investment property?

The best areas usually aren't cheap.  Look into where people would want to live - school districts, near parks, near work, etc.  Also, if you are new to being a landlord, I would recommend you reconsider since being a landlord isn't for everyone.  Although it's a great idea and has its perks, it is not an easy job and requires more time than you might think!

 

 

Contributor
evilmonkeys10
Posts: 15
Registered: ‎11-13-2011
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Re: What is the best area to buy investment property?

rocklin, ca -- tons of families seek the school districts

Visitor
LoriPrizmich
Posts: 2
Registered: ‎08-01-2011
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Re: What is the best area to buy investment property?

My recommendation for a first time investor is to buy a newer property (built 2000 or later).  Try to find something that doesn't need much cash outlay initially (no repairs or remodelling).  Make sure you get a home warranty so that any issues the renters have can be dealt with easily by sending a home warranty vendor to meet the renter.

 

Finally, to answer your question...area depends on what you are looking for.  Often times a rental investment will have the same qualities as a primary residence investment.  If you are looking for appreciation an area like Granite Bay, El Dorado Hills, or Davis can be good as there is low supply and high demand.  If you are looking for cash flow/appreciation Southport in West Sacramento, Elk Grove and Natomas are good.  If you are looking for straight cash flow, the lower priced areas.

New Visitor
AnnaPMC
Posts: 2
Registered: ‎04-28-2012
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Re: What is the best area to buy investment property?

Yes, I agree, but HOA and property taxes are extremely high as they are also in Lincoln.  Public school bus also costs $500 a year per child. 

New Visitor
88gt
Posts: 1
Registered: ‎05-16-2012

Re: What is the best area to buy investment property?

the best property to buy and the cheapest is Mars and Jupiter and surrounding planets . Stop taking from people who are trying to buy a house . if you want to make a fast buck get a job...

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sammyk
Posts: 2
Registered: ‎05-21-2012
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Re: What is the best area to buy investment property?

Anyone looking at the Mountain House area for rentals? Rents seem to be on the rise, but I've heard that utilities and property taxes are quite high here.  Any experience to share?

Regular Visitor
RichN
Posts: 7
Registered: ‎10-03-2011
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Re: What is the best area to buy investment property?


sammyk wrote:

Anyone looking at the Mountain House area for rentals? Rents seem to be on the rise, but I've heard that utilities and property taxes are quite high here.  Any experience to share?


 Never heard of it, so I checked it out. I'm assuming you're talking about the development near Tracy. I did a Redfin search, there seem to be houses around $250-300k, and rents around $1800-2000/mo. For a rental investment, personally I think that's not enough rent for the house price, but it really depends on what you're looking for. Planning on keeping it forever, or hoping for appreciation and selling it in 5-10 years?

 

Taxes do seem high, the $265k house at 523 Freeman Way Tracy, CA 95391 has property taxes of $5,549. That's $462/month, which you have to pay if it's rented or not! Yikes.

 

In my opinion, Rocklin and Roseville are better choices.


Visitor
JoyU
Posts: 1
Registered: ‎12-12-2011
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Re: What is the best area to buy investment property?

There are many great areas in Sacramento Co. It would depend on the price point you are looking to invest...
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BullNoMore
Posts: 1
Registered: ‎06-08-2012
0

Re: What is the best area to buy investment property?

Do yourself a favor; there is more problems in being a landlord than you can think of.  But if you are really interested, in Sacramento area your best all around bet is around H street in east Sacramento.  Make sure that you are as diligent in selecting a tenant as the banks are in giving a loan these days.