---
title: "Two Houses, One Lot: An Off-Market 40th Street Deal, Sourced & Repositioned for One of Our Investors"
description: How All Inclusive Realty Group sourced an off-market two-house Sacramento deal, negotiated $495K to $420K, and produced $4,700/mo for an investor - start to finish.
---

[blog Archives - Sacramento Property Management | All Inclusive Realty Group in Sacramento, CA ](https://www.allinclusiverealtygroup.com/blog)

# [Two Houses, One Lot: An Off-Market 40th Street Deal, Sourced & Repositioned for One of Our Investors](https://www.allinclusiverealtygroup.com/blog/case-study-40th-street-off-market-two-house-deal)

 Written by [Gary Burmaster](https://www.allinclusiverealtygroup.com/blog/author/gary-burmaster) | Jul 10, 2026 1:50:35 AM

**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.

## The 2026 Deal Math

This is what a real Sacramento deal looks like in 2026 — the numbers, plainly:

- **Bought for $420,000** — negotiated down from a $495,000 ask.
- **$45,000 rehab** — all-in at $465,000.
- **After-Repair Value (ARV): $695,000** — roughly **$230,000 of built-in equity** the day the work is done.
- **$4,700/mo combined rent** — clears the old-school **1% rule** (monthly rent vs. purchase price): $4,700 on a $420,000 buy.

## 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](https://www.allinclusiverealtygroup.com/podcast/ep-8-deal-types-2026).

[View full post](https://www.allinclusiverealtygroup.com/blog/case-study-40th-street-off-market-two-house-deal)

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