Finally, make sure the home you buy is clean and fresh and ready for tenants. Your new residents won’t want to spend a day cleaning the home before they move in. You want to get the keys back with the property in the same condition, so set a high standard.
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What Makes The Best Rental Home in the Sacramento Valley Area?
If you’re an investor looking for an opportunity to buy a rental property, what should you be looking for in the Sacramento Valley area?
Today, we’re sharing some of the characteristics that make the
best rental investment property.
Affordable Rental Values for Sacramento
First, you want a property that will be affordable. In the Sacramento region, the median salary is just over $72,000 per year. This breaks down to $6,000 a month in income. Our applicants must earn three times the rental amount, so you’re looking for a property that will earn an average of $2,000 per month in rent.
This isn’t to say there aren’t plenty of people earning more than that. But, they’re usually more concerned about their finances. They don’t want to be rent-poor. They may be saving to buy their own home. So, look for a property that will rent in the $2,000 per month range. You’ll find it’s the most rentable range.
Three Bedroom/Two Bathroom Sweet Spot
The best
rental property to buy in Sacramento is a three bedroom, two bathroom single-family home. This is the most sought-after rental home. It has to be in good condition, too. Most of the renters looking for these properties are leaving the multi-family life and they want more space and privacy. They’re looking for a home that’s clean and move-in ready. They want the extra bathroom and a secure garage. They want outdoor space and they like the extra bedroom because they’re working from home now.
Sacramento Rental Property Location
One thing the rental market and the sales market has in common is location.
This is a big part of the picture when you’re looking for the best
investment property. You want to buy a house in a neighborhood that looks safe. By safe, we mean that when you look down the street you don’t see bars on the windows and chain link fences around the perimeter of each property. Those things will make tenants not want to rent your home.
Ask yourself these questions:
- Would you feel comfortable having a child play in the front yard unattended?
- Would you move into this house yourself?
- Does it look like a friendly neighborhood?
You want an environment that’s comfortable and attractive to tenants.
This is a good example of why flips don’t always do well. You can renovate a distressed property into a gorgeous home inside and out, but if that home is on a street no one wants to live on, you’re going to have it vacant and you won’t earn back what you’ve invested.
Offering a Well-Maintained Rental Property
No one wants to rent the Taj Mahal. It may seem like a novelty at first to rent out a six-bedroom home with a pool and marble floors, but the rent will be so high that your tenants, if you find them, will not stay long. Higher rents lead to higher turnover.
There are a lot of property owners thinking about
1031 exchanges. You’re better off buying two smaller houses when you do a 1031 exchange than one giant mansion.
Finally, find a Sacramento-based Realtor who knows the local market. We can refer you to professionals who specialize in the investment experience.
If you have any questions about
investing in Sacramento rental homes, please contact us at Sacramento Delta Property Management.
Finding qualified residents quickly is your primary goal, and while SHRA offers valuable resources, it’s important to weigh the advantages and disadvantages of limiting your marketing scope.
Why Can’t My Tenants Just Pay the Water Bill (or HOA Bill) Directly?
Have you ever wondered about the income of the average tenant in Sacramento? We have some data to share about what people are earning and why they’re renting.
When potential landlords contact us at Sacramento Delta Property Management, these are the things we tell them about as we’re exploring whether they’re financially ready to be a landlord.
Discover why Zillow's rental estimates might be inflated and how local expertise ensures accurate pricing for your property.
These are just some of the things that need to happen when you are efficiently managing multiple properties.
Those difficult tenants come in all shapes, sizes, and mannerisms. Understanding how to effectively manage such people and situations is crucial.
Here are some of the emerging neighborhoods in Sacramento that you don’t want to miss.
Real estate investors have an opportunity to invest in green technology and make their rental properties more appealing, efficient, and cost-effective.
In this blog post, we’ll explore how interest rate changes impact Sacramento's rental market, and what investors should consider in the coming months.
Sacramento Delta Property Management, Inc.
910 Florin Road, Suite 100, Sacramento, CA 95831
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Sacramento Delta Property Management, Inc.
