This Sacramento house flipping guide can help real estate investors grow their business in this dynamic Central Valley city.
House flipping in Sacramento has been growing and very profitable for the last 5-10 years. The city has a rapidly growing population, 50% of which are transplants from the San Francisco Bay Area fleeing from that area’s skyrocketing home values.
Home values in Sacramento have increased significantly as a result of low-interest rates, a strong economy, a young and vibrant population, and rapid development.
There many homes built from the 1950s through the 1990s that are prime for fixing and flipping.
One of the largest employers is the state of California and the city has a lower unemployment rate than the rest of the state. With a mild climate, and situated between the Bay Area and the Sierra Nevada mountains, Sacramento is in a prime location for people who like the outdoors and a relaxed lifestyle.
Key House Flipping Stats for Sacramento
| Population | 501,901 and 5-year growth rate of 1.05% |
| Income | Average Household Income of $59,780 and 5-year growth rate of 11.6% |
| Home Value | $303,100 and a 5-year growth rate of 62% |
| Cost of Living | Sacramento is 98 vs. 100 for U.S. Cost of Living Index |
| New Home Starts | 7,000 and 5-year growth rate of 17% |
Sacramento Property Taxes
Sacramento County
The median property tax in Sacramento County, California is $2,204 per year for a home worth the median value of $324,200. Sacramento County collects, on average, 0.68% of a property’s assessed fair market value as property tax.
The average yearly property tax paid by Sacramento County residents amounts to about 2.91% of their yearly income.
To get information about property taxes in Sacramento County, you can use e-PropTax.
https://eproptax.saccounty.net/
Enter the correct 14 digit parcel number or address in the field on Sacramento County’s Online Property Tax Bill Information System website.
Based on the parcel number entered, e-PropTax will show:
- The most recent annual property tax bill for the most recent fiscal tax year.
- Property tax bill payment history.
- Payment stubs for unpaid tax bill installments.
- Property tax bills for property issued to the previous owner.
- Direct levies and special assessments subject to foreclosure.
- Make on-line payments on secured property tax bills, unsecured tax bills for real property, and redemption (prior year taxes).
- A warning message and link for more detail will appear for prior year delinquent unpaid taxes.
Also, if you have questions concerning the assessed value of your property, call the Sacramento County Assessor’s Office at (916) 875-0700.
You can find property tax information on the County of Sacramento Tax Collection and Business Licensing Division website.
http://www.finance.saccounty.net/Tax/Pages/default.aspx
Or you can use the Sacramento Assessor Parcel Viewer to find tax information.
http://www.assessor.saccounty.net/MapsPropertyDataAndRecords/Pages/AssessorParcelViewer.aspx
Sacramento Area Flood Zones
Sacramento is one of the most flood prone cities in the U.S.
More than 370 square miles of Sacramento County are within the 100 Year Floodplain.
Sacramento County was impacted by a series of Atmospheric Rivers and storm systems in Winter of 2017. Water from storm systems, high tides, reservoir releases, and runoff into the watershed impacted several areas of Sacramento County, specifically:
- Rio Linda
- Point Pleasant
- Glanville
- Wilton
- Southern portions of Sacramento County
Flood Zones for Sacramento are listed as:
- 100 yr Floodplain, Magpie Creek
- A
- AE
- AE – Floodway
- AH
- A99
- A0
- X Protected by Levees
- X
Flood Zone Information for Sacramento Land Parcels:
This site will allow for finding whether a parcel is in a flood zone or not.
http://www.waterresources.saccounty.net/stormready/Pages/Flood-Zone-Information.aspx
Also, see the FEMA Floodplain Viewer for Sacramento County:
http://generalmap.gis.saccounty.net/JSViewer/county_portal.html?view=FEMA
The FEMA Floodplain Maps may not have all local floodplains listed for properties in the area. So, for a specific property contact Sacramento County Water Resources at (916) 874-6490 for floodplain information.
Sacramento Area Flood Control Agency:
This site will show updates on levee improvements in the Sacramento area as well as water and flooding-related maps.
City of Sacramento Flood Maps:
This is the City of Sacramento website flood section and lists the different types of flood, evacuation, and levees maps.
https://www.cityofsacramento.org/Utilities/Drainage/Flood-Ready/Maps
City of Sacramento 100 Year Floodplain Map PDF:
This is a color-coded map with the flood zones of the Sacramento area.
Sacramento Ultimate Flood Depths Map:
This give a straightforward view of the Sacramento area and potential flooding depths.
FEMA Flood Map Changes Viewer
This is an ArcGIS based system that shows different geographic areas of the globe.
https://fema.maps.arcgis.com/apps/webappviewer/index.html?id=e7a7dc3ebd7f4ad39bb8e485bb64ce44
Sacramento Crime Rate
Sacramento has a Crime Index of 339.6 versus 280.6 for the U.S. Crime Index
Some of the safest areas of Sacramento are Arden, Carmichael, American River Drive, Riverside, Fair Oaks, and Folsom. Some of the most dangerous areas are more towards downtown and north of the city.
Sacramento Transportation
Rail
Sacramento uses Amtrak for its inter-city rail service for connections throughout California.
Sacramento RT Light Rail provides service to surrounding communities and has three lines (blue, gold, green) with 54 stations.
Buses
Greyhound bus service handles destinations across the country and connects from two locations in Sacramento.
There are many bus services in Sacramento including:
- Megabus is the Sacramento intercity bus service.
- RT Bus is a local bus service in the city operating daily
- E-tran is a bus service for the area of Elk Grove
- Yolobus serves Yolo County, primarily West Sacramento, Davis, and Woodland.
- Unitrans operates mostly in UC Davis for students and faculty.
- Roseville Transit serves the city of Roseville in N.E. Sacramento
- Placer County Transit operates within W. Placer County, Alta, Auburn, Colfax, Lincoln, Sierra College, Rocklin.
- El Dorado Transit serves El Dorado County and downtown Sacramento.
Airports
Sacramento International Airport (SMF) serves the region and connects to other U.S. cities, Mexico, and Vancouver, Canada. It lies 10 miles northwest of the downtown area.
Bicycles
Sacramento is very friendly to cyclists for commuting and recreational riding, with thousands of miles of well-defined bike lanes and paths.
Neighborhoods to Flip Houses in Sacramento
Arden-Arcade
The median home sale price in this neighborhood is $315,800 and the 5-year growth rate is 89%. This area has been the top place for house flipping for the past several years in Sacramento because of increased gentrification in the area. There are decent schools in the area with one, Del Dayo Elementary as being highly rated.
North Highlands
The median home sale price in this neighborhood is $254,600 with a 5-year growth rate of 85%. Schools in this area are not as highly rated as those in the Arden-Arcade neighborhood. Located just north of Carmicheal and Arden off Highway 80, this area could be a long-term growth area for real estate as the city expands in the future.
Land Park
The median home value in this neighborhood is $687,600 with a 5-year growth rate of 57%. There are good schools here with C. K. McClatchy High School as the highest-rated.
To learn more about gentrifying neighborhoods in Sacramento, see the Sacramento Gentrification Maps and Data:
https://www.governing.com/gov-data/sacramento-gentrification-maps-demographic-data.html
Hard Money Lenders in Sacramento
Sacramento Foreclosure Auctions
The City of Sacramento does not have its own list of foreclosure properties to purchase. Using auction.com, you can find foreclosure auctions and their locations. Some of them take place online, making it convenient for investors.
Other foreclosure auctions take place at the Gordon D. Schaber Sacramento County Courthouse. 720 9th Street, Sacramento, CA 95814.
Sacramento Tax Assessments
You can find property tax information on the County of Sacramento Tax Collection and Business Licensing Division website.
http://www.finance.saccounty.net/Tax/Pages/default.aspx
Or you can use the Sacramento Assessor Parcel Viewer to find tax information through the e-PropTax site.
http://www.assessor.saccounty.net/MapsPropertyDataAndRecords/Pages/AssessorParcelViewer.aspx
Information on CA Proposition 13 for Property Tax
https://www.californiataxdata.com/pdf/Prop13.pdf
Sacramento Deeds and Titles
Transferring ownership of real property can be done using forms avaiable from the Sacramento County Public Law Library.
Or you can use the Sacramento Assessor Parcel Viewer to find Deed information through the e-PropTax site.
It can also be obtained by visiting the Assessor’s Office at 3701 Power Inn Road, Suite 3000, in Sacramento. Or call (916) 875-0700.
http://www.assessor.saccounty.net/MapsPropertyDataAndRecords/Pages/AssessorParcelViewer.aspx
Sacramento Land Zoning
Zoning information can also be found using the Sacramento Assessor Parcel Viewer and zoning definitions at the City of Sacramento Zoning website.Also, contact [email protected], or the 311 service center for more information.
http://www.assessor.saccounty.net/MapsPropertyDataAndRecords/Pages/AssessorParcelViewer.aspx
https://www.cityofsacramento.org/Community-Development/Planning/Current-Planning/Zoning
http://www.cityofsacramento.org/Information-Technology/311
Sacramento Building Code and Permits
Building permits are required in Sacramento for any property additions or improvements. There are some exemptions, however, which can be found on the City of Sacramento Building Permits webpage.
http://www.cityofsacramento.org/Community-Development/Building/Permits
https://www.cityofsacramento.org/Community-Development/Resources/Codes/Building-Codes
Sacramento House Flipping Tips
Do’s
Like all cities, when house flipping in Sacramento you will need to estimate your costs beforehand and set aside a good sized amount for all the unexpected costs that can show up.
Most house flippers focus on renovating older properties and selling them to rental investors. However, there is also a big market for updating larger homes in nice neighborhoods and marketing them to buyers from the SF Bay Area. This is a great way to generate high ROI, as Bay Area buyers usually have significant cash and are looking to close quickly on a home with minimal maintenance issues.
Don’ts
Except for some highly desirable areas such as Folsom, Roseville and Carmichael, do not assume that Sacramento is a quick flip market where you can make a large profits quickly. Traditionally, the Sacramento market is fairly linear and predictable, with ample supply keeping house price growth in check. It’s best to be conservative and focus buying right and adding value to the properties you invest in.
What to Look Out For
Home prices in Sacramento have increased significantly in recent years and the profit margins on house flipping have decreased compared to other markets. Some areas have more housing supply and flips are taking longer to sell. Do enough research in the area to make sure the neighborhoods you are looking at are good places to purchase properties that will go up in value.
Real Estate Flipping and Investing Groups in Sacramento
Capital City Wealth Builders
Sacramento’s largest real estate club where you can meet other investors, brokers, agents, and lenders. A great place to get started meeting like minded people in the real estate industry.
https://www.sacramentorealestateclub.net
NorCalREIA, the Northern California Real Estate Investor’s Association
This group provides real estate education for its members that includes current real estate investment strategies and industry information.
Also, see the Meetup website for Sacramento real estate investment groups to attend.
https://www.meetup.com/topics/real-estate-investment/us/ca/sacramento/
Sacramento House Flipping Outlook
Many homes were built in previous decades that are prime for fixing up for house flippers in Sacramento. Sacramento is in a prime location for people who like the outdoors and a relaxed lifestyle due to a mild climate, and situated between the Bay Area and the Sierra Nevada mountains.
House flipping in Sacramento can be lucrative if done right and during when the real estate market conditions are favorable. The state of California provides most of the cities jobs and the and the city has a lower unemployment rate than the rest of the state.
The city has a growing population, many of whom come from outside the area looking to buy homes. The home values in Sacramento have increased dramatically in recent years, making the market competitive for house flippers. But the long term view is positive, reflecting migration from the San Francisco Bay Area and continued population growth in the region.