East Palo Alto, CA · Member since 2017 · 19 posts · 17 votes
We're looking at quadraplexs. The tenants are long term but at rents 30% below market. The property manager is clear that we can't increase rents for 9 months and need to move forward at 10% per year. With 30% down, we would run slightly negative the first year. Then could get 4300$ increase for each year forward for the next 3-4 years. Is this a reasonable investment? Also, the quadraplexes take 6-12 months or longer to sell here.
East Palo Alto, CA · Member since 2017 · 19 posts · 17 votes
9y
MFH aren't allowed to rent to anyone less than 30 days. That rule just passed. This property has been on the market one year. The one percent rule puts the value at 380,000. A 3/4 percent rule puts it at 500,000. They want 589,000. Last purchased five years ago for 310,000. Were starting to think it's quite overpriced. The current owner is selling to "move on to other things". But why do you leave a property that is making you money when you are cash flowing 9000.00 a year. None of the MFH s up here willcash flow. Most have been on the market 60 days or more. Thanks so much for your reply.