AIRG Investment Buy Box: Acquisition Criteria and Returns

All Inclusive Realty Group

Investment Buy Box

v1.6 — Q4 2026

Effective: October 31, 2026
Gary Burmaster, CEO / Realtor · DRE #01408894
All Inclusive Realty Group, Inc. · DRE #02005619

Asset Scope

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.

Geographic Scope

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.

Acquisition Price Ceiling

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 ($238,878/unit average sale price, Kidder Mathews Q3 2026). AIRG value-add target: $175K–$195K/unit — $2.5M covers about 10 units at market or 13–14 at target pricing.

Condition Gate

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

Minimum ROI — Flip

Max purchase price = ARV × 75% − repairs

And it must still leave $50,000 minimum profit after buying costs, holding, and selling costs (agent fees, transfer tax, title). If it doesn't, the price drops until it does.

Example: ARV $440,000 × 75% = $330,000 − $50,000 repairs = $280,000 max.

Flip thesis only applies in Tier A and B submarkets. Tier C requires Gary approval.

Minimum ROI — Hold (Scales with Deal Size)

Q4 2026 floors sit at least 0.5 pt above the 6.7% Sacramento average multifamily cap rate (Kidder Mathews, Q3 2026) and are stabilized, post-value-add targets. Declining market: no appreciation is underwritten.

Deal Size (Acquisition)	Min Cash-on-Cash (Stabilized, Year 1)	Min Stabilized Cap Rate	Notes
Under $400K	8.5%+	7.5%+ SFR / 7.5%+ MF	Smaller deals must cash-flow hard from Day 1. Less room for thesis error.
$400K – $700K	7.5%+	7.25%+	Standard Sacramento Tier B range. Underwritten on cash flow only, no appreciation.
$700K – $1.2M	7.0%+	7.25%+	Value-add upside required. No appreciation assumed in a declining market.
$1.2M – $2.5M (5–25 unit MF)	7.0%+	7.0%+ with documented thesis	Multifamily 5–25 unit range. Portfolio impact and appreciation thesis must be documented. Market avg cap 6.7% (Q3 2026); the floor applies to the stabilized, post-value-add number.

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.

Gary-Approval Triggers — Required Before Underwriting Advances

Price Above CeilingSFR >$600K, 2–4 unit >$800K, or 5–25 unit above $2.5M

Asset Class Outside Scope25+ units, raw land, commercial, mixed-use

Geography Outside CountyAny deal outside Sacramento County

Tier C Flip ThesisFlip strategy proposed in a Tier C submarket

Creative Finance StructureSeller carry, subject-to, wrap, JV, lease-option, assumable

Rehab Budget > $150K or >20% ARVWhichever threshold is reached first

Tier C- PropertyAny acquisition in a Tier C- submarket

Tier 1 Red FlagAny flag from the underwriting catalog — auto-review before advancement

Preferred Acquisition Channels

Receiver / Receivership PropertiesCourt-appointed receiver sales. Off-market, motivated liquidation, distressed pricing. Expect title encumbrances — resolve in escrow or reject. Standard condition gate and buy-box screens apply.

MLS / On-MarketStandard listed properties. Must clear all buy-box screens. Value-add thesis required at current market pricing to hit ROI floors.

Wholesale / AssignmentOff-market at discount. Verify ARV and rehab independently before contract. Direct seller or receiver contact only — no daisy chains.

Direct Seller OutreachCold outreach in target ZIP codes. Owner-occupant or reluctant landlord. Relationship-sourced deals qualify same as any channel — buy-box screens still required.

Sacramento Market Basis — Q3 2026 (Sources: Kidder Mathews Sacramento Multifamily Q3 2026, citing CoStar / Rental Beast Sacramento Rental Market Q3 2026)

Avg Sale Price / Unit — Multifamily$238,878 — up 51% YoY (from $157,987). $2.5M ceiling = about 10 units at market; 13–14 units at AIRG target pricing.

AIRG Buy Target — 5–25 Unit Value-Add$175K–$195K/unit (about 73–82% of the market average). Larger or premium acquisitions go to Gary for sign-off.

Market Avg Cap Rate6.7% (Q3 2026), up 120 bps from 5.5% a year ago. Rising cap rates mean better entry pricing for value-add buyers.

Avg Asking Rent / New Supply$1,807/unit/month, up 0.8% YoY. 2,394 units delivered year to date (down 32% from 2025); 3,431 under construction. Single-family median rent $1,995; 3-bed $2,300.

Vacancy & DemandMultifamily vacancy 6.1%, down from 6.5% a year ago. Median rental days on market: 18 (single-family 15). Concessions on 20.8% of listings vs 39.8% nationally.

AIRG Investment Buy Box

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