Effective: April 21, 2026
Owner: Gary Burmaster, CEO / Realtor
DRE# 02005619
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- Single-Family Residential (SFR)
- 2–25 unit multifamily
- 25+ units: Gary approval before triage
No raw land, commercial, or mixed-use without explicit Gary approval.
- Sacramento County — primary
- Tier A, B: flip or hold
- Tier C: hold with documented thesis only — no flip
- Tier C-: Gary approval required
Outside Sacramento County: Gary approval before triage.
- SFR: at or below $600,000
- 2–4 unit: at or below $800,000
- 5–25 unit: at or below $2,500,000
Above any ceiling: Gary sign-off before underwriting. 5–25 unit ceiling anchored to Sacramento market basis ($230,869/unit average all MF classes per Colliers Q4 2025). AIRG value-add target: $175K–$195K/unit — $2.5M covers 10–11 units at market or 13–14 at target discount.
- Value-add acceptable
- Active code enforcement lien at or above 20% of ARV: rejection
- Phase I environmental recommending Phase II: seller pays/escrows or reject
- Title cloud without resolution path: reject
- Flood Zone A or V with uninsurable or >3% of value annually: reject
Gross profit margin: 25% minimum
Calculation: (ARV − All-In Costs) ÷ ARV ≥ 25%
All-in includes: acquisition + rehab + holding costs + selling costs (agent fees, transfer tax, title).
Flip thesis only applies in Tier A and B submarkets. Tier C requires Gary approval.
Floors set above Sacramento market averages (A: 4.74% / B: 4.92% / C: 5.38%) to enforce deal discipline on value-add acquisitions.
| Deal Size (Acquisition) | Min Cash-on-Cash (Stabilized, Year 1) | Min Stabilized Cap Rate | Notes |
|---|---|---|---|
| Under $400K | 8.5%+ | 7.5%+ SFR / 6.5%+ MF | Smaller deals must cash-flow hard from Day 1. Less room for thesis error. |
| $400K – $700K | 7.5%+ | 6.5%+ | Standard Sacramento Tier B range. Appreciation supplements cash yield. |
| $700K – $1.2M | 6.5%+ | 6.0%+ | Scale and appreciation justify lower initial yield. Value-add upside required. |
| $1.2M – $2.5M (5–25 unit MF) | 6.0%+ | 5.5%+ with documented thesis | Multifamily 5–25 unit range. Portfolio impact and appreciation thesis must be documented. Market avg cap: 5.9% — floor is below market avg to allow class-B/C acquisition. |
CoC = annual net cash flow after debt service ÷ total equity invested. Stabilized = post-value-add, full occupancy basis. Cap rate = stabilized NOI ÷ purchase price. All floors represent post-stabilization targets, not current-state returns at acquisition.
