The result, up front: We found this one off-market — it was never listed, reached the seller directly, and negotiated from $495,000 down to $420,000. After a $45,000 rehab, one home is leased and paying $2,300/mo; the second is finishing rehab and coming to market at $2,400/mo. Our investor owns two Sacramento homes on one lot — sourced, negotiated, rebuilt, and managed by AIRG.
How We Found It — the $75K Edge
The seller wasn't on the market and wasn't planning to be. We reached them directly, underwrote to what the property actually supports as income — not to an asking price — and anchored the offer there. That discipline is what took $495,000 to $420,000: a $75,000 swing in our investor's favor before a dollar of rehab. A generic manager can lease a house. Sourcing a $75K discount on a property the public never sees is the part money can't buy on its own.
Two Homes, One Lot
6017 40th St
2 bed / 2 bath · two-car garage
Leased now — $2,300/mo
6019 40th St
2 bed / 1.5 bath + den
In rehab — coming to $2,400/mo
In place vs. in progress: 6017 is leased and paying $2,300/mo today. 6019 is finishing its $45,000 rehab and comes to market at $2,400/mo — $4,700/mo combined once placed.
More Than One Way to Win
- Cash flow now — two rentable homes, one already leased.
- Forced appreciation — the $45K rehab lifts rent and value on 6019.
- Future optionality — the parcel may present the opportunity to split the lot down the line and sell or finance the homes separately (subject to city approval).
- Long-term upside — hold as the submarket continues to grow.
The AIRG Playbook
This wasn't luck — it's the loop we run for our investors, every time: source off-market → underwrite to reality → negotiate hard → reposition → manage.
The Kind of Deal Working in 2026
Off-market two-house lots and light value-add are exactly what we broke down on our podcast — Runways & Rent Rolls, Episode 8: Deal Types 2026.
