Is "House Hacking" a more affordable path to homeownership in Sacramento?

One of the most practical strategies I’m seeing more frequently in the Greater Sacramento real estate market is buyers purchasing a duplex, living in one unit, and renting out the other. Sometimes called “house hacking,” the concept is simple: the rental income from the second unit can help offset the monthly mortgage payment, property taxes, insurance, and even some utility expenses. 

For many buyers in Sacramento, Arden, Citrus Heights, Carmichael, Orangevale, Rancho Cordova, and surrounding areas, this can completely change the math of homeownership. Instead of stretching every dollar toward a single-family home where the entire monthly payment comes out of pocket, duplex buyers may have a tenant contributing toward the property’s carrying costs each month. In some cases, that rental income can offset a substantial portion of the monthly expense. 

For example, if a duplex payment is $3,900 per month and the second unit rents for $2,000 per month, the owner is effectively not carrying the full payment themselves. 

Every situation is different, of course, but for many buyers this creates a level of financial breathing room that is hard to ignore. Another major advantage many people do not initially realize is financing. Traditionally, purchasing a true investment property often requires larger down payments, higher interest rates, and stricter lending standards...many non-owner-occupied investment property loans require 20% to 25% down or more. But when buyers purchase a duplex as their primary residence and occupy one of the units, they may qualify for owner-occupied financing instead. That can potentially mean: 

• Lower down payment options 
• More favorable interest rates 
• Lower monthly payments 

In other words, buyers can sometimes acquire a property with investment-style benefits of rental income, long-term appreciation potential, and multiple units without needing the large down payment typically associated with investment real estate. 

I’m also noticing that many duplex buyers today are not necessarily approaching it with a “real estate investor” mindset. They are teachers, nurses, office professionals, tradespeople, young families, or buyers simply trying to create a little more long-term financial stability. They want a place to live, but they also want their housing payment to work a little smarter for them. 

Of course, duplex ownership is not for everyone. You are still a property owner, and eventually there may be repairs, maintenance, tenant screening, or vacancy periods to navigate. But for the right buyer, the tradeoff can make a lot of financial sense, and especially in a higher-cost housing environment like California. Many buyers today are looking for flexibility, supplemental income opportunities, and ways to offset rising housing costs. Duplexes check a lot of those boxes. And while a duplex may not be someone’s forever home, it can absolutely be a stepping stone toward long-term wealth building and financial stability.

If you’ve ever been curious about whether buying a duplex in Sacramento could make sense for your situation, feel free to reach out. I’m always happy to walk buyers through the numbers, financing considerations, rental market trends, and what to realistically expect from owner-occupied duplex living.

Can a New Duplex Owner Terminate Month-to-Month Tenants in the City of Sacramento?

I recently spoke with an aspiring real estate investor who was considering purchasing a duplex in Midtown Sacramento. Both units were occupied by long-term tenants (long term = occupied the unit for more than one year) on month-to-month rental agreements. His plan sounded pretty straightforward: purchase the property, give the existing tenants notice, furnish the units and operate them as short-term rentals. Interesting idea. But there was an important wrinkle: Just because a tenant is month-to-month doesn't necessarily mean a new owner can simply give them notice and ask them to leave.

Buying the property doesn't eliminate or void the existing tenancy. And this is an especially important consideration when purchasing an occupied multi-family duplex, triplex or fourplex within the City of Sacramento due to their Tenant Protection Program. 

Buyers naturally spend a lot of time analyzing the real estate itself. What is the condition of the roof? How old is the HVAC? What are the operating expenses? Does the property need updating? But with an occupied investment property, the tenants and their tenure in the unit are every bit as important. I sometimes put it this way: you're not just buying the building. You're also buying the existing tenancies. And those tenancies can directly affect what you're able to do with the property after closing. 

But what if the tenants are month-to-month? This is where investors can get tripped up. It's easy to hear "month-to-month" and assume that means the tenancy can simply be terminated with appropriate notice. But rental units covered by the City of Sacramento's Tenant Protection Program can have just-cause eviction protections once a tenant has occupied the property for more than 12 months. In other words, the expiration of an original lease and conversion to a month-to-month rental agreement doesn't necessarily eliminate the tenant's protections. 

A landlord generally needs a legally recognized "just cause" to terminate a protected tenancy. Some qualifying "just cause" reasons involve actions by the tenant, such as failure to pay rent, certain breaches of the rental agreement, nuisance or criminal activity, or failure to provide lawful access. 

There are also certain circumstances that don't necessarily involve wrongdoing by the tenant. These are sometimes referred to as "no fault evictions" and can include an owner move-in, withdrawal of the unit from the rental market, or necessary and substantial repairs requiring temporary vacancy. But simply purchasing a property and preferring to have it vacant is not, by itself, the same thing as having a qualifying just cause. 

Why this matters to your investment strategy? Go back to the duplex this potential buyer was considering. His entire investment plan depended on terminating the existing tenancies and taking possession of both units after closing. That makes the status of those tenancies more than a minor due-diligence question. It's fundamental to whether his proposed investment strategy will work at all.

Maybe you want to buy a duplex and live in one side. Maybe you plan a significant renovation. Maybe you're buying a property for another family member to occupy. Or maybe, like this investor, your plans for the property are completely different from the current owner's use. Whatever the goal, if your plan requires an existing tenant to leave, you should understand whether you can legally accomplish that before you purchase the property.

This is also an area where I encourage clients to consult a qualified landlord-tenant attorney. As a Realtor, I can help identify the real estate issues we should investigate and obtain information about the existing tenancies, but determining whether a particular tenancy can legally be terminated is a legal question. 

And we're specifically talking about the City of Sacramento. Here's another detail that can easily cause confusion. The City of Sacramento's Tenant Protection Program applies within Sacramento city limits. That is a specific governmental jurisdiction. A property having "Sacramento, CA" in its mailing address does not necessarily mean it's located within the incorporated City of Sacramento. There are large areas around Sacramento that people commonly refer to as Sacramento, and that may even use Sacramento as their mailing city, that are actually located in unincorporated Sacramento County. That distinction matters because local ordinances can be different depending on which jurisdiction the property is actually located in. Some areas that are NOT in the city limits with a Sacramento mailing address include the Arden-Arcade area, Foothill Farms area, South Sacramento area, Rosemont area, most of the College Greens area, most of the Sierra Oaks area, etc.

So if you're considering purchasing an occupied rental property, don't make assumptions based solely on the mailing address or ZIP code. Verify the property's jurisdiction. And remember that properties outside Sacramento city limits may still be subject to California state landlord-tenant laws and other applicable protections. Being outside the City simply means that this particular City of Sacramento ordinance may not apply. 

But the moral of the story is to understand and be familiar with the basics before you buy. When evaluating an occupied multifamily property, I want to know more than the number of units and what the building looks like. How long has each tenant lived there? Are there written leases? Are they month-to-month? What documentation has the seller maintained? Are there agreements or notices that a buyer needs to know about? Is the property within Sacramento city limits? Is it subject to the City's Tenant Protection Program? Do other protections apply? And perhaps most importantly: Does your plan for the property depend on one or more of the existing tenants leaving? If the answer is yes, that's something to investigate early. There can be tremendous opportunities in Sacramento duplexes, triplexes and fourplexes. But with an occupied property, understanding exactly what you're buying means understanding both the real estate *and* the ramifications of the tenancies that come with it.

It is worth noting that this post is intended to provide general real estate information and is not legal or tax advice. California landlord-tenant law and local tenant protections are complex and can change. Buyers, sellers and property owners should consult a qualified landlord-tenant attorney regarding a particular property or tenancy.

New Listing: 5953-5955 Moss Creek Circle, Fair Oaks, CA 95628 (duplex)

Excellent multi-unit investment property opportunity in Fair Oaks with tons of potential! This conveniently located duplex is in a high-demand area and offers great upside potential for an investor or owner-occupant willing to bring their vision and updates. The right-side unit at 5955 has 3 bedrooms/2 bathrooms with a 2-car garage and leased month-to-month. The left-side unit at 5953 has 2 bedrooms/2 bathrooms with a 1-car garage and leased month-to-month. Both are spacious units and have open floorplans, generous-sized bedrooms, en-suite primary bathrooms, ample storage, and large private fenced backyards. 5955 has a new water heater and flooring was replaced in 2022. The duplex is the perfect blank canvas for your improvements and modernization, and the layout and location make it a solid value-add investment. Close to shopping, public transportation, parks, award-winning schools, and convenient highway access. Offered at $619,000. Don't wait! For more photos, financials, disclosures, and information please visit 5953-5955 Moss Creek Circle, Fair Oaks, CA 95628.

New Listing: 7729 Sunset Avenue & 7864 Greenridge Way (DUPLEX), Fair Oaks, CA 95628

Excellent turn-key investment opportunity with this renovated well-maintained Fair Oaks duplex! Convenient, high-demand corner location looks a lot like a single family home -- with one address on Sunset Avenue, and one address on Greenridge Way. 7729 Sunset Avenue unit has 2bd/2ba + 2-car attached garage. You will love the updated kitchen with stainless appliances. Large primary suite with remodeled ensuite bathroom. Spacious hallway bedroom and hallway bathroom. Stunningly landscaped backyard with large trex deck and patio area. 7864 Greenridge Way unit has 2bd/1ba + 2-car attached garage. You will love the low-maintenance laminate floors throughout, large bedrooms, and updated bathroom. Each side has dual pane windows, ceiling fans, central heat & air, and washer/dryer hookups. Composition roof with 2-year certification. New siding and trim installed and exterior paint in 2023. Per assessor a HUGE 0.36ac lot. Located near shopping, public transportation, parks, award-winning schools, and easy access to public transportation. Income and expenses available upon request, as well as a complete list of updates/remodeling. DO NOT DISTURB TENANTS. Offered at $649,900. 3D Virtual Tour for Sunset Unit Link. 3D Virtual Tour for Greenridge Unit Link. For more photos and additional detail, please visit 7729 Sunset Avenue & 7864 Greenridge Way, Fair Oaks, CA 95628.

Make sure to read inspection reports provided to you...

Not long ago, I represented the buyer for the purchase of an investment property in Rancho Cordova. The duplex had previously been in contract with another buyer who ultimately was unable to complete the purchase. That buyer had obtained a few inspections on the property, which were passed along to us as disclosures. They had also negotiated a section one termite clearance with the seller and that repair work had been completed already. Section one work includes remediating things like treating for active termites and repairing deteriorated wood. That's obviously nice!

However upon reading the original termite inspection that the clearance was based upon, I noticed there was a glaring omission. The sub-area, aka the crawl space under the structure, had not been inspected and was not included in the clearance! That's a big exclusion...often times a home that looks pristine on the exterior can have major issues underneath.

So, we requested that a smaller inspector come back out to the duplex, one who could fit underneath, and complete the inspection. The supplemental inspection found some rotten floor joists. Obviously that needed to be addressed, and we negotiated that the seller took pay for those repairs.

The moral of the story is -- make sure to read inspection reports that are provided to you.

New Duplex Listing - 2522-2524 Q Street, Sacramento, CA 95816

Newly renovated midtown Sacramento duplex! Large 1 bedroom / 1 bathroom in the front, larger 2 bedroom / 1 bathroom on the side/rear, huge parcel with detached 3-car garage with rear alley access. Recently updated with new roof, new stucco, and fresh interior paint. You will love the charming units with lots of storage, cute kitchens, washer/dryer hook-ups,  wood floors, central heat and window a/c, and nice spacious lay-outs. This is the investment property you have been looking for. High-demand location, close to public transportation, downtown Sacramento, restaurants and shopping. Don't wait! Offered at $425,000. For more photos and detail, visit 2522-2524 Q Street, Sacramento, CA 95816.

New Listing - 6308 & 6310 Blackstar Drive, Citrus Heights, CA 95621

Excellent real estate investment opportunity with this well-maintained Citrus Heights duplex. Convenient and high-demand location. This property is a 2 bedroom/1 bathroom/1-car garage and a larger 2 bedroom/2 bathroom/1-car garage duplex. Spacious units flow nicely with lots of living space, open layouts, big bedrooms, ample storage, and private backyards. 6308 has brand new flooring and fresh paint. Reports, income/expenses, and maintenance records available. Located near shopping, public transportation, parks, schools, and I-80. Offered at $345,000. For more photos and detail, please visit 6308-6310 Blackstar Drive, Citrus Heights, CA 95621.

Selling a Sacramento investment property is a lot different than selling your own home. Part II; Disclosure...

A few weeks ago I wrote about how selling an investment property is a lot different than selling your own home. An investment property is any rental property - for example, a duplex, triplex or fourplex, or a single family home or condo. There are many of key differences and things to consider when selling these properties. Last week, I wrote mainly about how to work with your tenants so they help rather than hinder the investment property listing and selling process.

Today I would like to follow up on all that by talking about another one of the things that the sellers of investment property need to consider: the fact that you don't live in the property, and you may not know much about the property to disclose to a buyer.

I always give my sellers a full packet of disclosure documents to fill out before the property goes on the market. First, you should note that there is a check-box on the Real Estate Transfer Disclosure Statement where you can note if you are, or are not, occupying the property. You would check the "not" box. Second, I will tell you that it is a good idea to overtly state in your disclosures that you have never lived in the property as your primary residence, or that you have not lived in the property in ____ years. A good place to do this is the Seller Property Questionnaire. On the 4th page there is an "Other" Section where this statement can go.

Hopefully as a landlord, you have been keeping accurate maintenance records for the property. The big-ticket things you probably know and can disclose -- for example, you probably know approximately when you replaced the roof, or that you replaced the dishwasher before the current tenant moved in, that you have a company spray for bugs every other month, etc. And you should note those dates and details in your disclosures. If you have contractor receipts, it is best to include copies of them with your disclosures as well.

But what about the non-big-ticket things? This information can be of equal importance to a buyer, but as the seller you may not be aware of the property's certain idiosyncrasies that only someone who lives in the house will. Like the fact there are 4 constantly barking dogs next door, there is street sweeper that makes lots of noise every Tuesday morning at 4am, that vagrants rummage through the trash cans at night, that the bathtub has a slow drain, that airplanes fly overhead sometimes, that the neighbor grows marijuana in the backyard, or that the downstairs tenant can hear the footsteps of the upstairs tenant...or that the tenant you think is low maintenance and never complains just didn't choose to tell you that the water heater is leaking, that the bathroom exhaust fan stopped working, etc.

Remember my last post about communication with your tenants when it comes time to sell? This is the perfect time to schedule a walk-through of the unit -- not only to talk about showings and introduce your Realtor, but also to ask your tenant if there are any little things like this you may want to disclose. If during your walk-through, you discover the water heater is leaking, that is a good opportunity to get it repaired before the property goes on the market, and then be sure to disclose that the repair was made. Ask your tenants about potential nuisances and disclose them. Something like "Per tenant, neighboring dogs bark at night" should be adequate.

One thing I also highly recommend is augmenting your disclosures with some professional inspections. For example, it is a really good idea to get a termite inspection before the property goes on the market, and either make the recommended repairs for a clearance, or just use the written report itself as a disclosure.

It's definitely in the seller's best interest to make disclosures as transparent and accurate as possible. Inadequate disclosures can lead to buyer frustration and potential issues with the new owner down the line...

Read my previous post on this topic: How to work with tenants when selling an investment property.

Wanted! (Possibly) your home for one of my buyer clients...

And continuing with my buyer clients "wants and needs" series of blog posts -- here are what some of my buyer clients are looking for...are you (thinking about) selling a home that would meet any of these buyers' needs?

"Buyers A" are very well-qualified pre-approved buyers. I just closed the sale of their home and they are staying with family as they look for their next home. They would like to live in the Arden or Carmichael area as close as possible to the intersection of Watt Avenue and Whitney Avenue. They are looking 3+ bedrooms, and 1.5+ bathrooms, decent closet and storage space, and a 2-car garage. They do not mind something that needs updating. A large side yard or a separate living room and family room would be a plus. Their max purchase price is $260,000.

"Buyer B" is a very well-qualified pre-approved investor buyer seeking a duplex, triplex, or fouplex. He ideally would like a property in the Citrus Heights, Arden, Carmichael, or nearby Sacramento areas. He does not mind a property that needs TLC. He may or may not do a tax deferred 1031 Exchange. His max purchase price is $400,000.

"Buyers C" are very well-qualified pre-approved first time buyers. They ideally would like a newer or remodeled home in Elk Grove or South Sacramento. They would like 3+ bedrooms, and 2+ bathrooms, and 1,400sf or more. A built-in pool is a huge plus. Their max purchase price is $275,000.

"Buyers D" are very well-qualified pre-approved buyers. They ideally would like home in West Sacramento in Ironworks or in Downtown, Midtown, or East Sacramento. They would like 2+ bedrooms, and 1.5+ bathrooms, and 1+car garage. His max purchase price is $400,000.

If you own a home that seems to meet any of this criteria and are thinking about selling (or know someone who is), please contact me -- I may have a buyer for your home! If you need to do a short sale, I can certainly facilitate that as well, and am happy to talk to you to see if we are a good fit to work together.

On another note, I am working with numerous other buyers who are looking for homes in several other Sacramento area neighborhoods -- please contact me if you would like more details, and look for future posts.

Selling a Sacramento investment property is a lot different than selling your own home. Part I; Working with your tenants...

Recently I have received a lot of inquiries to list and sell small "investment properties." What's an investment property? An investment property is any rental property - for example, a duplex, triplex or fourplex, or a single family home or condo.

Since property values in Sacramento have increased in the last few years since the bottom of the real estate market, it seems that folks are looking to cash in their chips. The element that is most interesting to me is that most (not all) of the investment property sellers I am speaking with are looking to sell because they don't like being landlords, and rather than roll their equity or sales proceeds into a bigger better investment property via a tax deferred 1031 Exchange, they are just looking to cash out.

Selling an investment property is a lot different than selling your own home. First and foremost, somebody else, a tenant, is likely living in the property. Second, since you don't live there, you may not know much about the property. Third, there are things like deposits, maintenance expenses, utilities, repairs, and rental income to factor into the equation. And fourth, often times the monthly rental income the property produces is an important element in determining value -- not just the property as compared to the sales prices of other recent sales of comparable properties.

Over the next few weeks I will write about the different considerations investment property owners face when selling...

Let's talk about tenants first. A tenant can really make or break your property's sale. An uncooperative tenant can cost a seller thousands of dollars in a sale. For example, are they tidy or messy? Some tenants treat rental property like their own home, are clean and take pride in its appearance, maybe do minor maintenance themselves, and let their landlords know if something is broken and needs fixing. On the other side, I've seen some tenants who are borderline hoarders, their units smell bad, there are dirty clothes and moldy food everywhere, and they haven't cleaned the bathroom in a few years. A new buyer looks at those issues and immediately thinks in terms of potential cleaning and repair costs, and may pass on the property all together or hit you up for a lower price or concessions for repairs. Another thing to consider when selling a property with a tenant: are they going to be cooperative with allowing showings, or not? Some tenants are very understanding, want to make a good impression on their possible future landlord and accommodate showings and access to the property for inspections. Other tenants will feel threatened by the possibility of a new landlord, feel afraid they will be kicked out of their home, and not make the effort to make the unit available on their own accord. Some tenants will insist to be present for showings and sabotage the potential buyer’s impression of the property.

So what do you do when you have a tenant who falls into the problem category? I find the best approach with tenants is complete and total transparency -- do not hide the fact you are planning to sell. Nothing creates more tenant hostility than a landlord who lists a property and the first notice a tenant gets is a seeing a “for sale” sign in the front yard. Communicate with them. Let them know that you want/need to sell and that you want to make the process as easy as possible. Ask to make an appointment with them and meet at their unit - this allows you the chance to talk, and allows you to see the unit. If the unit is messy, offer to have it professionally cleaned for them. Most tenants will jump at the chance to have their unit cleaned for free. If you can afford it, you might offer to incentivise the tenant by offering a temporary reduction in rent in exchange for cooperation with showings while the property is for sale. If you do that, be sure to do it in writing with very clear parameters. Be sure to introduce your Realtor to the tenants and make sure they know how to contact each other. Set clear parameters for arranging showings and access -- like “by appointment with 24 hours notice.” If you need to arrange extended access to a buyer for inspections, maybe offer them some movie tickets in exchange for being away 3-4 hours.

Most tenants do want to help you succeed in your sale and make a smooth transition to the new owner...next week I will talk about disclosures for a rental property since you don’t have first hand knowledge of the potential idiosyncrasies about the property...

Do you have a home for these buyers?

Do you have a home for any of these buyers? With the current lack of real estate inventory in our local Sacramento region, I thought that perhaps I would send this out to the universe with the hopes that someone thinking about selling might notice that I have a home buyer looking for a home that sounds like theirs. So with that, here is a list of my buyer clients, their price ranges, and basic search criteria. If you are thinking about selling a home or know someone who wants to sell their home who has something like any of these, please do not hesitate to reach out to me - 916-342-1372 or erin@erinstumpf.com. I am happy to see if my clients are a fit for your home and explore next steps, or help you strategize preparing your home for sale.

Buyer A: Carmichael, Fair Oaks, Orangevale - this buyer is looking for a minimum of 3 bedrooms, 2 bathrooms, and about 1500sf, and would ideally prefer 4 bedrooms or a separate living and family room where they can have a home office. They prefer something that needs a little updating and are not scared by a fixer property. They'd love a larger lot (like more than 0.20ac or 8,700sf or so). They would also love a pool but that is not a deal-breaker. They are well-qualified for a conventional loan up to about $450,000.

Buyer B: Arden/Arcade, Carmichael - this buyer is looking for a single level 3 bedroom, 2 bathroom home under 2,000sf that is nicely remodeled. Specifically they want a remodeled kitchen that opens to the living space. They specifically do not want a swimming pool. They'd love a lot that already has a shed/workshop or space to build one. They are well-qualified for a conventional loan up to about $650,000.

Buyer C: Pocket/Greenhaven, South Land Park, Natomas (if Natomas, along the Garden Hwy Corridor) - this buyer is looking for a 3 bedroom, 2 bathroom home that is above 1500sf. They do not mind something that needs a little updating, but would also love something updated and turn key. They would love a pool, but a pool-sized yard that can accommodate a pool later works too. They are well-qualified for a conventional loan up to about $580,000. They could go higher for the right house if given the opportunity to sell their home first.

Buyer D: Carmichael/Del Dayo - this buyer is specifically looking for the Del Dayo neighborhood or very close to it, to be within the school boundaries of Del Dayo Elementary. They are looking for a minimum of 3 bedrooms, 2 bathrooms, 1600sf, and would love a built-in pool or a pool-sized yard that can accommodate a future pool. They do not mind a fixer. They are well-qualified for a conventional loan up to about $675,000.

Buyer E: Fair Oaks - this buyer is looking for a 4 bedroom, 2 bathroom, minimum of 1600sf, on a large lot (like more than 0.20ac or 8,700sf or so) with a built-in pool. Ideally this home would be situated in a somewhat private/quiet setting. They are well-qualified for a conventional loan up to about $725,000

Buyer F: Land Park, Curtis Park, Oak Park - this buyer is looking for a multi-family property. Ideally this property would be two detached units on one lot (home and an accessory dwelling unit, or two houses on one lot). They might also consider a duplex if perhaps situated on a corner lot where the entrances are separate or there are minimal shared/common walls. This buyer needs a at least one of the units to be vacant and to have 2 bedrooms to owner-occupy it. They are well-qualified for a conventional loan up to about $800,000. 

Buyer G: West Sacramento/Southport - this buyer is looking for a home in the Bridgeway Lakes community that is 4 bedrooms, 3  bathrooms, and 2700sf or more. They are well-qualified for a conventional loan up to about $650,000.

Buyer H: Midtown, Land Park, East Sacramento - this buyer is looking for a single level home with at least 2 full bathrooms. They prefer a fixer and are not scared of something that needs a significant amount of work. They are all cash buyers looking up to about $800,000.

Buyer I: Davis, Woodland, West Sacramento - this buyer is looking for a newer construction home (built within the last 20 years) of at least 3 bedrooms, 2 bathrooms, and 1500sf. They prefer a single family home, however in Davis they are also considering townhomes and condos. They are well qualified for a conventional loan up to $500,000.

Buyer J: Davis, El Macero - this buyer is looking for a minimum 5 bedroom, 3 bathroom, 2,000sf home. They do not want a home built more than 50 years ago. They are doing a 1031 Exchange and the minimum purchase price must be about $800,000, and they can spend up to about $1.2M.

Buyer K: Midtown, East Sacramento - this buyer is looking for a 2 bedroom, 1 bathroom home or condo and would like to be a reasonable walking distance to the state Capitol and surrounding area. They are well-qualified for a conventional loan up to about $500,000.

Buyer L: Midtown, Downtown - this buyer is looking for a 3+ bedroom, 2+ bathroom, 2,000sf+ home on the grid that is within a short distance to the state Capitol, restaurants, shops, etc. Ideally it is a higher density home or condo that is newer construction or significantly remodeled. It must have a garage and at least a small ground-level patio yard. They are well-qualified for a conventional loan up to about $1M.

Buyer M: East Sacramento, Sierra Oaks - this buyer is looking for a 4 bedroom, 3 bathroom, 2,400sf+ home that is newer construction or substantially remodeled. It is either within close proximity to UC Davis Medical Center or to Country Day School. They are well-qualified up to $1.5M.

New Listing - 5517-5519 East Knoll Drive, Fair Oaks, CA 95628

Excellent turn-key investment opportunity with this renovated well-maintained Fair Oaks duplex! Convenient, high-demand location. Both units were substantially gutted and rebuilt approximately 6 years ago; new drywall and baseboards, new kitchen cabinets and granite countertops, new shower enclosures, bathroom vanities, and toilets, new laminate flooring, new light fixtures, new composition roof and gutters, new dual pane windows, and new HVAC units. Left side 5517 unit is 3 bedrooms/2 bathrooms with a 2-car garage, and the right side 5519 unit is 2 bedrooms/2 bathrooms with a 1-car garage. Spacious units flow nicely with lots of living space, open floorplans, big bedrooms, remodeled kitchens and bathrooms, en-suite primary bedrooms, ample storage, and large private/fenced backyards. Located near shopping, public transportation, parks, award-winning schools, and convenient access to I-80 and Hwy-50. 5517 pays $2095/mo. 5519 pays $1800/mo. DO NOT DISTURB OCCUPANTS. Offered at $749,900. For more photos and detail please visit 5517-5519 East Knoll Drive, Fair Oaks, CA 95628.

Zillow...a fun tool for "entertainment purposes" - but has it become more accurate in predicting Sacramento home values?

If you have been reading my blog for a while, then you probably already know that I usually get a chill down my spine when one of my clients mentions "the Z word." What's the Z word? Zillow. What is Zillow? Zillow.com is a website that, among other things, provides information about neighborhoods and properties.

Zillow is a neat website. I have an agent profile on Zillow. I have clients who have found me using Zillow. However, my general thought about Zillow is that while it's a fun consumer tool that provides property information to people looking to buy or sell (or even rent property now), the vast majority of the time, the "Zestimate" (aka, the value that the website dreams up for a certain property), is usually not close to the market value of a Sacramento area property, and the homes listed for sale on the website are not current.

I posted a few times last year about how the sales prices of my transactions compare to Zillow data. I've closed 8 transactions in the last couple months so let's take a look to see how close Zillow is to the actual selling prices of these properties. This information is CURRENT as of today, September 5th, 2014.

15 Waterfront Court, Sacramento, CA 95831; this was a nice remodeled home I sold (represented the buyer) in the Pocket/Greenhaven area. The original listing price was $270,000, and after multiple offers this sold on 6/4/14 for $281,000. Zillow's Zestimate: $263,576 -- approximately 6.61% below it's selling price. 
 
2509 Butano Drive, Sacramento, CA 95821; this was a fixer home I sold (represented the buyer) in the Arden area. The original listing price was $239,000, and this sold on 6/18/14 for $225,000. Zillow's Zestimate: $242,722 -- approximately 7.87% above it's selling price.

7244-7246 Canelo Hills Drive, Citrus Heights, CA 95610; this was a duplex I sold (represented the buyer) near in Citrus Heights. The original listing price was $255,000, and this sold on 6/20/14 for $215,000. Zillow's Zestimate: $220,478 -- approximately 2.56% above it's selling price.

6134 Van Alstine Avenue, Carmichael, CA 95608; this was a home I sold (represented the buyer) near in the American River in Carmichael. The original listing price was $1,595,000, and this sold on 7/17/14 for $1,495,000 (and it appraised significantly higher than the purchase price). Zillow's Zestimate: $1,336,127 -- approximately 11.89% below it's selling price.

1419 Hopkins Street, Sacramento, CA 95822; this was a home I listed and sold (represented the seller) near South Land Park in Sacramento. The original listing price was $129,900, and this sold on 7/20/14 for $129,900. Zillow's Zestimate: $125,415 -- approximately 3.58% below it's selling price.

3201 T Street, Sacramento, CA 95816; this was a home I listed and sold (represented the seller) near the UC Davis Med Center in East Sacramento. The original listing price was $299,900, and this had multiple offers and sold on 7/24/14 for $308,000. Zillow's Zestimate: $264,769 -- approximately 16.33% below it's selling price. WOW.

5364-5366 Elsinore Way, Fair Oaks, CA 95628; this was a home I sold (represented the buyer) in Fair Oaks. The original listing price was $259,900, and this sold on 8/26/14 for $259,900. Zillow's Zestimate: $304,522 -- approximately 17.17% above it's selling price. WOW.

4336 52nd Street, Sacramento, CA 95820; this was a home I listed and sold (represented the seller) in Colonial Heights. The original listing price was $189,900, and this sold on 8/28/14 for $183,000. Zillow's Zestimate: $175,871 -- approximately 4.1% below it's selling price.

I have said it before and I will say it again...I think a couple conclusions can be drawn from the information above. First, Zestimates are generally not accurate. They don't take into consideration property features that can not be quantified. Is it on a main street, is it near a park, was the kitchen remodeled, does it have unique architectural features...? Second, our dynamic Sacramento area real estate market has changed significantly in the last couple of year, and Zillow has a long way to go to catch up to pricing these trends and factoring them into their mathematical equations that determine these values. But it is still a fun website for entertainment purposes. 

If I can assist you determine an accurate price range for your Sacramento home, I welcome your call or email.

New Listing - 6304 & 6306 Blackstar Drive, Citrus Heights, CA 95621

Excellent investment property opportunity with this well-maintained Citrus Heights duplex. Convenient, high-demand location. 6304 Blackstar Drive is a 2 bedroom, 2 bathroom unit with a 1-car garage (rent $1,150/month), and 6306 Blackstar Drive is a 2 bedroom, 1 bathroom unit with a 1-car garage (rent $975/month). Spacious units flow nicely with lots of living space, open layouts, big bedrooms, ample storage, and private backyards. Reports, maintenance, and income/expense records available. Located near shopping, public transportation, parks, schools, and I-80. Offered at $338,000. For more photos and additional information, please visit 6304-6306 Blackstar Drive, Citrus Heights, CA 95621.

New Listing - 6134 & 6136 Merrywood Drive, Rocklin, CA 95677

Excellent investment opportunity with this well-maintained Rocklin duplex! Convenient, high-demand location. Each unit is a 2 bedrooms, 2 full bathrooms, attached 1-car garage and are essentially mirror images of each other. Spacious units flow nicely with lots of living space, open floorplans, big bedrooms, updated kitchens, en-suite master bedrooms, ample storage, private/fenced backyards. Both units have dual pane windows, central heat & air, and composition roof. Right 6134 unit is month-to-month and $1,250/mo. Left 6136 unit is leased through May 2020 and $1,520/month. Located near shopping, public transportation, parks, schools, and easy access to I-80. Offered at $449,900. For more photos and information please visit 6134 & 6136 Merrywood Drive, Rocklin, CA 95677.

Do you have a Sacramento home to sell that one of my buyer clients might like?

And continuing with my buyer clients "wants and needs" series of blog posts -- here are what some of my buyer clients are looking for...are you (thinking about) selling a home that would meet any of these buyers' needs?

"Buyers A" are very well-qualified pre-approved first-time home buyers. They would like to live in Garden of the Gods or a nearby neighborhood in the Arden or Carmichael area. They are looking 3+ bedrooms, and 2+ bathrooms, decent closet and storage space, and a .15ac+ yard. Real hardwood flooring and a 2-car garage are both "must haves", and they do not mind something that needs updating. A large side yard or RV access would be a plus. Their max purchase price is $350,000.

"Buyer B" is a very well-qualified pre-approved investor buyer seeking a duplex. He ideally would like a property in the Citrus Heights, Arden, Carmichael, or nearby Sacramento areas. He would prefer 2+ bedrooms on each side and rents in the $800/month+ range for each unit. He is doing a 1031 Exchange. His max purchase price is $250,000.

"Buyers C" are very well-qualified pre-approved buyers. They ideally would like a newer or remodeled home in Arden Park, Carmichael, Land Park, East Sacramento or Pocket/Greenhaven. They would like 4+ bedrooms, and 3+ bathrooms, and 2,000sf or more. If a 2-story home, they must have a downstairs bedroom and bathroom. Their max purchase price is $750,000.

"Buyer D" is a cash buyer seeking a single family home, condo or half-plex.  He ideally would like home in the South Land Park, Hollywood Park, or Pocket/Greenhaven neighborhoods. He would like 2+ bedrooms, and 1+ bathrooms, and 1+car garage. A fixer or turn-key property would be ok. His max purchase price is $225,000.

If you own a home that seems to meet any of this criteria and are thinking about selling (or know someone who is), please contact me -- I may have a buyer for your home! If you need to do a short sale, I can certainly facilitate that as well, and am happy to talk to you to see if we are a good fit to work together.

On another note, I am working with numerous other buyers who are looking for homes in several other Sacramento area neighborhoods -- please contact me if you would like more details, and look for future posts.

I was featured on the news...Squatters are becoming more common in Sacramento...

It seems like "squatters" have become an issue again. For several years during the housing crash, as many homes sat vacant they were prone to vandalism and break-in. It was not uncommon to encounter people squatting in homes. When values started to go up again and there were not as many vacant properties, it seemed like squatters became less of a problem. Fast forward to today, and squatters seem to be an issue again.

What is a squatter? A squatter is someone who unlawfully enters into a property and stays there without permission from the owner. It is a crime of opportunity, as well as the fact I do think that with the proliferation of smart phone devices squatters can search MLS for vacant property to target.

I encountered squatters at one of my vacant Midtown Sacramento duplex listings a few months ago. I approached the property to install a carbon monoxide detector, and noticed a shopping cart near the front porch. As I got closer I could hear voices inside and footsteps echoing off the hardwood floors. I immediately called the police. Before the 9-1-1 operator could take my information, a police car drove by and I flagged him down. Luckily those squatters did little damage and probably had not been there too long.

I just represented buyers on another Curtis Park triplex property that was broken into and torn apart by squatters. That property was the subject of an ABC Channel 10 news story by John Bartell. You can watch the news story here. Luckily I was able to negotiate a price reduction on the property once we got a full understanding of the extent of the damage, which in this case was extensive. All three HVAC units were stolen. Holes were punched in the walls. All of the copper plumbing and wiring was removed. It was bad.

How can you as a home seller prevent squatters? I highly suggest if you have a vacant property that you give it the appearance that it is occupied. Park a car in the driveway, or ask a neighbor to do so. Make sure your windows have blinds or curtains so people can not see inside. Put a lamp with a plug-in light timer in a few rooms that is set to go on and off during the evening. Keep the grass and landscape trimmed. Make sure you suspend mail so your mailbox does not overflow. Same with the newspaper. Set your alarm and spring for month-to-month monitoring services. Make sure your neighbors are aware the property is vacant and let them know to alert you to any suspicious activity.

A little vigilance goes a long way.

Want to sell your investment multi-unit Sacramento property? I may have buyers for you...

Are you considering listing your Sacramento investment property (like a duplex, triplex, fourplex, or 5+ unit property) for sale? I have a couple different clients who are listing properties in other geographic areas and starting 1031 exchanges with the intent to buy investment property in Sacramento. These are all-cash buyers. And no, I'm not talking about some big hedge fund looking to buy up half of Sacramento...these are just regular people looking to make a few key investments in Sacramento real estate.

What is a 1031 Exchange? A properly structured 1031 Exchange allows an investor to sell a property, to reinvest the sales proceeds in a new property purchase and to defer all of the capital gain taxes. There are some timelines to "identify" the replacement property to be purchased that will be coming up in the near future. So timing is a critical issue.

So if you have an investment property you are considering selling -- call me. I am working with a few different investor buyers who will be participating in these tax deferred exchanges soon that need to identify their replacement purchases soon. Budgets for these purchases depend on a few factors but could be anywhere from $200,000 - $1,000,000, and they could purchase one or more properties.

New listing - 7413-7415 Tierra Way, Fair Oaks, CA 95628

Excellent investment opportunity with this well-maintained and professionally managed Fair Oaks duplex! Sharp and tidy, this is a convenient and high-demand location. Each unit is 2 bedrooms, 2 full bathrooms, with an attached large 1-car garage -- they are essentially mirror images of each other. Spacious units flow nicely with lots of living space, fireplaces, open floorplans, big bedrooms, updated kitchens, en-suite primary bedrooms, ample storage, private/fenced backyards. Both units have central heat & air, and composition roof. Located near shopping, public transportation, parks, schools, and restaurants. 7413 pays $1522.50/mo rent + $95/mo toward utilities. 7415 pays 1496.25/mo rent + $92/mo toward utilities. DO NOT DISTURB OCCUPANTS! Offered at $549,900. For more photos and information, please visit 7413-7415 Tierra Way, Fair Oaks, CA 95628.

City of Sacramento Rental Housing Inspections...Yep - they are for real!

I blogged about the City of Sacramento's Rental Housing Inspection Ordinance early this year. Since then, I had only heard a few random comments about them from some other Realtors who own rental property within the city limits.

Well...last week, my husband (an electrical contractor in Sacramento), got a frantic call from a lady who owns a duplex in Land Park. She explained that a city inspector had visited her property, and had determined that the main electrical panel was not up to par, there were no GFCI receptacles, there were not enough smoke detectors, there were not enough circuits to accommodate everything, and there were ungrounded 3-pronged receptacles throughout...there were other non-electrical items that I did not mention. The inspector issued a correction notice, and these repairs had to be completed by a certain date, or she faced a stiff fine. YIKES!

So, my husband spent the better part of a week doing the corrective work...the bill for just the electrical was about $5,000 including all labor, materials, permits, and coordination with SMUD and the City of Sacramento.

Landlords within the Sacramento city limits - THIS ORDINANCE IS VERY REAL!