Why Your Next Real Estate Investment Should be in Sacramento.
As Bay Area real estate prices continue to climb, prospective real estate investors continue to widen their search for the perfect property. In fact, according to a recent report, a quarter of Bay Area buyers shifted their search to Sacramento, where housing prices are still 2 to 3 times more affordable than in counties like Alameda and San Mateo. And there’s a good chance that if you’re reading this, you’re among those people. But for some, what began as a compromise is the beginning of an even greater investment opportunity, and here’s why.
Sacramento, home of the next real estate boon.
What makes Sacramento the perfect place for real estate investing? Described as a “synergistic relationship”, Sacramento is home to a growing number of companies and homeowners exiting the Bay Area due to skyrocketing prices. In turn, the greater Sacramento area is steadily developing into a burgeoning job market and a prime spot for reliable real estate purchases—both for investors and individuals. With an average annual appreciation rate of 8% (and a forecast of 7% for 2018-2019), the city remains one of the best locales for real estate investments, statewide. As Wayne Gretzky famously advised: “Skate where the puck is going“; all (real estate) signs point to Sacramento.
Of course, that makes finding the right property slightly more difficult than in previous years. Fortunately, we’re writing to tell you that the perfect investment property — situated in the Alkali Flat district and mere blocks from the State Capitol — has been found, and it’s ready to be yours. To really understand what makes this opportunity so lucrative, however, you should first know a little bit about its neighborhood.
Getting in on the ground floor.
While Sacramento continues to grow, the Alkali Flat neighborhood (one of the city’s oldest historical districts) is experiencing an especially rapid revitalization that provides fantastic opportunities and amenities for investors — particularly those who manage to get in at the ground floor. At the center of this is the construction of the nearby “Railyards” Soccer stadium, scheduled to be completed for the 2020 MLS season.
A sharp growth in local businesses has accompanied this ambitious construction, including the development of shopping centers & parks, restaurants & breweries, and local theaters & art exhibits. Look no further than San Francisco’s SOMA District shortly after the construction of AT&T Park (which was described by investors as nothing short of an “economic rebirth” for the area) and it becomes clear that good things are coming to the community.
Now available: The perfect real estate investment.
So it may come as no surprise that, when we got the opportunity to rejuvenate a duplex in this amazing community, we practically jumped on it. We know all too well that potential rentals are often overlooked when it comes to improvements, and similar duplexes in the area reflected that: Relatively outdated, inconsistent, and uninspired. Yet here was a chance to take a property with amazing potential — from its unique Edwardian architecture to its ideal location — and refresh it with designer-curated materials that not only modernized it, but reinforced its rich heritage.
And “unique” really is the right word, for there are no properties quite like this. Each unit is practically its own house, connected only by a single utility closet. Occupants enjoy all the peace and privacy of single family home, while living in the heart of one of the greatest cities on the west coast. Not “just” a rental. A home.
The result is a pair of beautiful “turnkey” properties that are virtually without equal. Warm and inviting, like a home should feel; convenient and practical, with features that are important whether you’re the owner or the tenant; distinct and distinguished, to reflect the vibrant history of the neighborhood. Truly, these are properties that any landlord would happily call home, and that tenants will pay top dollar for — especially as the community continues to grow.
In fact, at a fair market price, rents should not only cover the typical costs (including the mortgage, property taxes, insurance, and management fees) of the investment — from the very first month — but be cash flow-positive as well. And even if the owner were to instead occupy the smaller home while renting out the larger 4-bedroom unit, they could effectively cover nearly eighty percent of their monthly mortgage payments!
But don’t just take our word for it, there are plenty of ways to see for yourself! Visit our property page to view photos and videos of this fantastic investment opportunity. Better yet, contact our office to schedule a private showing appointment so you can see for yourself!