Repositioning Equity from Jersey City NJ to Berkeley CA

Buying & Selling Real Estate
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Repositioning Equity from Jersey City NJ to Berkeley CA

Sateesh Kumar
Member since 2023 · 40 posts · 10 votes

Hello,

A job relocation to San Francisco CA early this year is making me ponder if I should be selling my owner occupied duplex in Jersey City and buy something in Berkeley CA due to its proximity to San Francisco and has some fairly decent schools  for my kids and also UC Berkeley .

The low  2.5% interest rate on the Jersey City property turned into a golden chain but I think I am done with managing tenants and property and would like to get more into an Equity play. Kindly provide your input what would be the best place in the CA Bay Area to reposition my equity up to 700k? I am also open to other areas like Dublin, San Jose.

Thanks

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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
1y

Depending on when you bought in Jersey City, you are probably in a good position to sell now in general. However, JC as you know is overrun with new build multifamily options so there is a lot of competition in Hudson Co whereas the suburbs there is none.

It really depends if you need the money to buy a house out there and want to plant roots. If yes and yes, you sell. If you don't need to sell to buy out there, you want to see what your cash flow would be when you leave before making a decision.

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    1y

    Depending on when you bought in Jersey City, you are probably in a good position to sell now in general. However, JC as you know is overrun with new build multifamily options so there is a lot of competition in Hudson Co whereas the suburbs there is none.

    It really depends if you need the money to buy a house out there and want to plant roots. If yes and yes, you sell. If you don't need to sell to buy out there, you want to see what your cash flow would be when you leave before making a decision.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
    Zen and the Art of Real Estate Investing59 Reviews
    WebsiteView Page
    2Reply
  • Ayelet Wiedermann
    Passaic, NJ · Member since 2024 · 26 posts · 17 votes
    1y

    @Sateesh Kumar, it's tough to give up on a 2.5% interest rate, although of course your unique personal situation comes into play. Many of our clients in similar positions keep the investment and hire a property manager - that allows them a completely hands off investment, while continuing to build equity. Let me know if you'd like to consider. Happy to run through numbers with you to see what makes the most sense.

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  • Sateesh Kumar
    OP
    Member since 2023 · 40 posts · 10 votes
    1y
    Quote from @Ayelet Wiedermann:

    @Sateesh Kumar, it's tough to give up on a 2.5% interest rate, although of course your unique personal situation comes into play. Many of our clients in similar positions keep the investment and hire a property manager - that allows them a completely hands off investment, while continuing to build equity. Let me know if you'd like to consider. Happy to run through numbers with you to see what makes the most sense.

    Thank You Ayelet. Do you serve Jersey City?
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  • Ayelet Wiedermann
    Passaic, NJ · Member since 2024 · 26 posts · 17 votes
    1y
    Quote from @Sateesh Kumar:

     Yes, we do.

    1Reply
  • Wilson Lau
    Real Estate Agent · San Jose, CA · Member since 2023 · 181 posts · 104 votes
    1y
    Quote from @Sateesh Kumar:

    Hello,

    A job relocation to San Francisco CA early this year is making me ponder if I should be selling my owner occupied duplex in Jersey City and buy something in Berkeley CA due to its proximity to San Francisco and has some fairly decent schools  for my kids and also UC Berkeley .

    The low  2.5% interest rate on the Jersey City property turned into a golden chain but I think I am done with managing tenants and property and would like to get more into an Equity play. Kindly provide your input what would be the best place in the CA Bay Area to reposition my equity up to 700k? I am also open to other areas like Dublin, San Jose.

    Thanks

    Welcome to the Bay Area! It really depends on what your budget and specific needs are. I would say the neighborhoods in the Bay Area are very diverse, and every community has its own unique vibe. You mentioned about UC. Assuming your kids are in high school and going to college, here are some areas you can put on your radar - El Cerrito, Kensington, Berkeley, Piedmont, Dublin, and South SF. Feel free to reach out if you like more specific details.
    1Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    1y

    @Sateesh Kumar personal goals aside, what return are you making on the Jersey property and can you beat that by selling & investing in California?

    Logical Property Management4.9446 Reviews
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  • Sateesh Kumar
    OP
    Member since 2023 · 40 posts · 10 votes
    1y
    Quote from @Michael Smythe:

    @Sateesh Kumar personal goals aside, what return are you making on the Jersey property and can you beat that by selling & investing in California?

    The cash flow is good given I am on a very low interest rate besides I am a DIY live in landlord currently .PITI is a little less than 4k while I make a rent of 5k while living for free and there is lot more room to increase rent. I am also anticipating more appreciation in next 5 years due to the Home's proximity to NYC. Having a hard time to find anything remotely comparable to this home in CA
    However being a remote landlord feels like a tough pill to swallow hence the confusion.
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