California’s strong real estate market carries along many real estate markets within it. The Sacramento real estate market is among the hottest rising markets in the state. Both homebuyers and real estate investors are going for Sacramento real estate. All thanks are given to its affordability and steadiness.
What makes the Sacramento real estate market the choice for real estate investors?
The Sacramento real estate market is known for affordability, especially when compared to the neighboring San Francisco real estate market. According to Mashvisor’s investment property calculator, the median property price in Sacramento is $373,840. Meanwhile, the median property price for residential real estate in San Francisco jumps the million and a half. Accordingly, many Bay Area residents are going for Sacramento and making use of the affordable housing.
In addition to that, Sacramento’s real estate offers high rental income for real estate investors. If you’re going for a buy-and-hold investment strategy with Sacramento real estate, you can go for long-term rental strategies or short-term rental strategies with ease of mind. The city average of traditional rental income fluctuates around $1,395. Meanwhile, the average Airbnb rental income reaches as high as $2,760.
There are plenty of opportunities within Sacramento real estate for income generating assets and the current housing market is favorable for investments in California real estate. To know more about income generating assets, read this blog post: Investment Properties – The Best Income Generating Assets.
Where to invest in Sacramento real estate
According to Mashvisor’s investment property calculator, here are the best areas for real estate investments in the Sacramento real estate market:
It’s only befitting that we start with the vibrant part of Sacramento. The streets are lined with boutiques, nightlife, and fine dining restaurants. This area attracts millennials to experience the art scene of Sacramento.
Yes, the area is of major attraction to 20 something-year-old youngsters. It also offers great amenities for the older generations. Everything is close in proximity. Of course, real estate investors and developers have not abandoned the midtown area as there are plenty of different types of real estate. Walking along the boulevard midtown, you will find Victorian houses, apartment buildings, and townhouses. The area ranges in prices from a condo starting at $300,000 to a million-dollar house.
The area of East Sacramento is quite central and close to the midtown area. Real estate investors are very interested in this area for Airbnb investment properties as the average Airbnb rental income fluctuates around $5,175 according to Mashvisor. On the other hand, a traditional rental property will yield less than half of that at $1,811. The median property price in the East Sacramento neighborhood is around the highest in Sacramento real estate with a whopping $605,950.
Sierra Oaks catches up and exceeds East Sacramento neighborhood with a median property price of $790,800. Meanwhile, the average Airbnb rental income in Sierra Oaks reaches $2,046. Many real estate investors are going for Sacramento real estate for traditional rentals and buy-and-holds mainly because the average traditional rental income reaches $1,654. Not a very big difference when comparing the expensive costs of running an Airbnb rental property. To know more about running an Airbnb rental, read this blog post: Are You Cut Out for Owning an Airbnb?
Sierra Oaks takes its spot among Sacramento real estate to be one of the best areas to live in and raise a family. Investing in single-family rental properties is common among real estate investors here.
This Sacramento neighborhood tops Sacramento real estate in affordability. With a low median property price of $366,514, it opens the doors for both novice real estate investors and first-time homebuyers to enter the real estate investment world. Consequently, the traditional rental income is around $1,453 according to Mashvisor. Moreover, the Airbnb rental income in the neighborhood is $2,063.
Village 2 is thriving with its ethnic blend; the community offers an encompassing experience of what the American society of today really is. In addition to that, many chain retail stores are opening branches in the area. This gives the area a modern and clean look.
How to ensure you’re getting your money’s worth in Sacramento real estate
What most successful real estate investors advise you to do is ask around any neighborhood you’re interested in buying an investment property in. Through this, you can find out first-hand information about how the area is doing, what the costs of maintaining a property are and whether you should or shouldn’t invest in it.
Another bullet-proof method to do so is conducting a real estate market analysis with a well-established investment property calculator. This can help you find out the values of Sacramento real estate now and the future forecasted property value. Accordingly, Mashvisor’s investment property calculator gives you just that and then some! You can find out all the real estate investment variables about any local real estate market. That includes the cap rate, cash on cash return, and even Airbnb occupancy rates.
You can use an investment property calculator to find the real estate comps of any given property. It does not matter whether it is a Sacramento real estate property or not. Click here to give it a go with Mashvisor’s investment property calculator and enjoy the 14-day free trial.
For more information about the use of an investment property calculator, read this blog post: Why an Investment Property Calculator Tells You More Than Just Numbers.
Now is the time to invest in Sacramento real estate: Yes or No?
If you’re a real estate investor or a home buyer looking to buy a property in California’s real estate market, look no further, my friend! Sacramento real estate investing is popular for both the locals and investors looking to go for out-of-state real estate investing. Now is the time to invest in Sacramento real estate! Start investing in Sacramento real estate and enjoy the perks that come along with it!
If you have any more insights about the Sacramento real estate market, please share them with us in the comments section.