I am considering buying a 2-4 unit multi-family in Oakland, CA and wanted some advice.
- Is it too late to buy in Oakland given the appreciation we have already seen?
- If not, what areas should I focus on if I want to rent out to millennials and tech workers?
- What are the challenges with having rental property there?
@Sud Raj ,
Have a couple properties in Oakland, and overall love the place.
Rent control is the biggest PITA, for sure.
I think there are better reward/risk times to buy than when everyone and their mom is employed, but I think that's true with most asset classes...
If you are in an owner-occupied duplex or triplex in Oakland, it's exempt from rent control after 2 years, for as long as you live there.
Other millennial and tech cities are the typical suspects.. Seattle, Portland, Austin..
Hi @Sud Raj , I've invested in Oakland over the last couple years and have found it worthwhile so far. I don't think it's necessarily "too late," as there are opportunities in any market. We're probably not going to see the massive appreciation that took place over the last 5-10 years, but there are still cash-flow + modest appreciation opportunities out there.
I've focused mostly on North Oakland -- Longfellow, Temescal, Bushrod -- but I would also consider looking around Lake Merritt. For millenials or tech workers, it's probably important to be around BART and/or casual carpool to get into the city. I think the neighborhoods close to transit will be slightly more resilient that those further away, since you will be betting on the Bay Area (and access to SF) rather than Oakland remaining hot in its own right.
Good luck. Let me know if you ever want to connect to discuss investing in Oakland.
Thanks @J. Martin and @Brent Tarnow for the your response.
A's just announced location of new stadium near lake merritt... Oakland works if you have the capital, but it's going to take a lot to get into it. Should slow down a bit come the holidays, less people want to move so that works both ways (buyer/seller).