Sacramento Rents Leave Speculators Short
This SacBee article brings up the issue of rents and you may be surprised who's talking. "It's hard to find a bigger proponent of homeownership than Scott Syphax, head of Sacramento-based Nehemiah Corp. Syphax's advice: Wait it out a year. In that time, he suspects, the market will cool, meaning more homes to choose from and maybe even some bargains."
"In today's market 'it's certainly hard to even think of breaking even in terms of the rents,' said Joan Krizman, a longtime Sacramento investor-landlord whose family owns nearly 70 homes in the east Sacramento and Land Park areas."
"Krizman said the woman, who's been buying homes as rental investments nationwide, was hoping to get $1,200 a month because her mortgage payment was $1,600. 'I hate to disappoint her but I have to. She'll be lucky if it rents for $995 a month.'"
"Rental industry sources say investors from other regions continue to purchase single-family homes here without doing their homework. These investors, including many from the Bay Area and Southern California, are often disappointed to learn that the rents they had hoped to fetch here are hundreds of dollars above market."