Last updated on June 21st, 2023
airbnb property investment sacramento
The State of California may be well-known for its cities’ several remarkable events, famous people, and legendary tourist attractions, but there are so much more cities to discover. There’s no denying that travelers from all over the world visit the beautiful cities in Cali for either leisure or business purposes, maybe even both!
As there are consistently several best areas for Airbnb in California, in this article, we’ll feature the most overlooked city – Sacramento. With its close proximity to major cities such as San Francisco and San Jose, Sacramento is an up-and-coming region that offers various sweet deals of properties for sale.
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“The overall cost of living in Sacramento is also significantly more affordable than other mainstream California venues. Sacramento comes in 26% lower than Los Angeles and 65% more affordable than San Francisco.”
– Security Financial Services Sacramento Investment
Interesting fact: The cost of living in Sacramento is affordable which makes it an attractive area for property investors who want to start investing in this city! If you want to test the waters first before diving to invest (and we recommend that you should), then using an Airbnb calculator can certainly help you make smart investment decisions.
Continue reading and let’s find out if Sacramento is a great place to invest for Airbnb!
airbnb property for sale Scranton
Why Should You Consider Buying An Airbnb in Sacramento?
Some of the unique features that Sacramento has to offer including its wide city parks (perfect for biking & running), coastline in sunny weather, and even its famous farm-to-fork dining setup in restaurants. Aside from the fact that Sacramento is affordable compared to other cities, it’s clearly perfect for a property investor who wants to enjoy these rewards while earning a passive income through Airbnb. Not yet convinced? Here are some of the major reasons why you should consider buying a property for Airbnb in Sacramento:
1. Booming Economy
The business industries in Sacramento are quite vast – from high-quality universities, and tech companies, to agriculture, the economic stability of this city is consistently on the rise. This confirms that the unemployment rate is extremely low in the city and the demand for housing will continuously increase.
2. High Appreciation Rates
Norada Real Estate cited Neighborhood Scout’s data which dictates that the real estate in Sacramento neighborhoods such as Central Oak Park and Woodlake has consistently increased since 2000. Talk about decades of upward trend! With the forecast for high appreciation in the next few years, it’s clear that Sacramento can generate a good cash flow for property investment.
3. Exquisite Close to Nature Experience
Did you know that Sacramento is dubbed “The city of Trees”? As the city is surrounded by nature, it’s certainly the best of both worlds. On a personal note, wouldn’t it be heaven to live in a place that has everything you need? From shopping districts and tasty restaurants in the city, Sacramento also enables its residents and tourists a breathe fresh air – perfect for trying outdoor activities.
Is Property Investment Profitable in Sacramento?
Using an short-term rental calculator, it was discovered that a 2-bedroom apartment in Sacramento can generate an annual revenue of $57,450 with a steady occupancy rate of 77% and a nightly rate of $182.
airbnb property investment sacramento
Sacramento Properties for Sale
Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage.
At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the houses for sale in Sacramento along with the calculated gross rental yield, cash-on-cash return, and annual revenue.
airbnb property investment sacramento
7563 Huckleberry Ln, Sacramento, CA 95828
1. Studio-type Property for Sale Sacramento
- 0.6 miles to James Rutter Middle School
- Asking Price: $83,500
| GROSS RENTAL YIELD | 30.36% |
| ANNUAL REVENUE | $25,347 |
| CASH ON CASH RETURN | 65.30% |
5808 Alameda Ln, Sacramento, CA 95842
2. 1-Bedroom Type Property for Sale Sacramento
- 0.8 miles Foothill Oaks Elementary School
- Asking Price: $68,000
| GROSS RENTAL YIELD | 34.16% |
| ANNUAL REVENUE | $23,231 |
| CASH ON CASH RETURN | 76.72% |
6309 Convention Ln Unit 101, Sacramento, CA 95828
3. 2-Bedroom House for Sale Sacramento
- Near Sacramento Unified School
- Asking Price: $129,000
| GROSS RENTAL YIELD | 23.96% |
| ANNUAL REVENUE | $30,908 |
| CASH ON CASH RETURN | 46.11% |
22 Bentley Ave, Sacramento, CA 95823
4. 3-Bedroom Type Property for Sale Sacramento
- 0.2 miles Luther Burbank High School
- Asking Price: $160,000
| GROSS RENTAL YIELD | 24.98% |
| ANNUAL REVENUE | $39,969 |
| CASH ON CASH RETURN | 49.17% |
3115 Redcoat Ln Unit 107, Sacramento, CA 95827
5. 4-Bedroom Type Property for Sale Sacramento
- 0.5 miles to Abraham Lincoln Elementary School
Asking Price: $176,000
| GROSS RENTAL YIELD | 25.51% |
| ANNUAL REVENUE | $44,895 |
| CASH ON CASH RETURN | 50.76% |
Conclusion
Investing in a property is certainly a huge step that one needs to not only think about – but also conduct market research for accuracy. Sacramento can generate a nice cash flow for property investors, as long as the right neighborhood is targeted and potential revenue is calculated using an Airbnb rental arbitrage calculator. While there are many other cities to invest in California aside from Sacramento, it’s definitely worth the time & effort to speak with a short-term rental expert to make the wisest decision for property investment.
