Considering job offer 100,000k base salary

Property Manager · San Francisco, CA · Member since 2020 · 53 posts · 17 votes

I’m having a hard time on Deciding to take a job offer in Palo Alto My biggest hesitation is the average rent cost in Palo Alto being $4,200 for a 1 bedroom

My personal non negotiable are not having a commute / living within 5 miles of my job

the offer I got is $100,000 base and $40,000k in equity after 1 year.

I’m currently with a company where my base pay is $38,480 and $26,100 (housing allowance) & there’s $100 bonus per lease.

So people are saying I’m crazy for even considering to stay but I’m truly having a hard time because

I also would need to pay for full time childcare in Palo Alto most quotes I have are within $2700-3500, so I’m adding that with the cost of housing and it doesn’t really add up and it’s making my head hurt. I’m the sole income provider.

Is this offer something I should be moved to take?

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Caroline Gerardo

Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes

DM me age of your children to determine how long you pay for full time child care and afterschool. Also helps with commute ideas

Daly City, Sunnyvale commute with Bart?

Ask for moving allowance up front. $10000

IRS allows you to write off $5000 of dependant child care which isn't much, but something.

What google does is they own apartment buildings and bus workers in to campus, if you took the B leap then found job at established company vs start up the housing piece is half and they subsidize care.

Do not count on the $40000, it may not be available for three years, golden handcuff type compensation.

This is a leap of faith. How stable is the company? What income growth for you if the company does well?

Do you have any family who could move in with you to provide back up child care when they are sick?

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Carlos Ptriawan:

Quote from @Myeasha Jones:

Quote from @Jay Hinrichs:

Quote from @Bjorn Ahlblad:

@Myeasha Jones East Palo Alto is not where you want to live, especially with your kids. It is a high crime area.

You are in for a very exciting and hopefully rewarding time Myeasha! Silicon Valley is amazing. So many opportunities to go down or up-it is really up to you!

I lived in Palo Alto for 10 years and grew up in the area. EPA in the day was a war zone.. but I think it has changed a lot.. I would at least drive through and see what can be rented and check the schools before you cross it off the list.

Thank you!

EPA is quite gentrifying story. Some area inside EPA is quite okay these days.
To be very honest , the way to survive in this location are three key things:
1. needs to own a house, and house in the are currently is quite affordable from its standard.
2. needs dual income family, with one side working at tech / finance / ; or maybe construction.
Lot of hard worker people, not just the one in tech, is very succesful in the area due to high income earner and lot of jobs.

I bought a foreclosure in EpA circa 82 ish for 15k :)
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Jay ThomasPro Member
Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
3y
When looking at the total compensation package, it's important to factor in other costs that may arise from taking the job. Such as, living closer to Palo Alto can be expensive as real estate prices in the area tend to be high. This could offset some of the benefit of a higher salary or equity stake. Furthermore, if you require full-time childcare then this must also be taken into account when evaluating your offer. All these additional costs should be factored into your decision-making process.
[email protected]832-889-5607
1 Reply
Myeasha Jones
OP
Property Manager · San Francisco, CA · Member since 2020 · 53 posts · 17 votes
3y
Quote from @Jay Thomas:

When looking at the total compensation package, it's important to factor in other costs that may arise from taking the job. Such as, living closer to Palo Alto can be expensive as real estate prices in the area tend to be high. This could offset some of the benefit of a higher salary or equity stake. Furthermore, if you require full-time childcare then this must also be taken into account when evaluating your offer. All these additional costs should be factored into your decision-making process.

Thanks Jay.
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Myeasha Jones:

Quote from @Jay Thomas:

When looking at the total compensation package, it's important to factor in other costs that may arise from taking the job. Such as, living closer to Palo Alto can be expensive as real estate prices in the area tend to be high. This could offset some of the benefit of a higher salary or equity stake. Furthermore, if you require full-time childcare then this must also be taken into account when evaluating your offer. All these additional costs should be factored into your decision-making process.

Thanks Jay.

chat GP answer LOL
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4 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
Quote from @Jay Hinrichs:

Quote from @Carlos Ptriawan:

Quote from @Myeasha Jones:

Quote from @Jay Hinrichs:

Quote from @Bjorn Ahlblad:

@Myeasha Jones East Palo Alto is not where you want to live, especially with your kids. It is a high crime area.

You are in for a very exciting and hopefully rewarding time Myeasha! Silicon Valley is amazing. So many opportunities to go down or up-it is really up to you!

I lived in Palo Alto for 10 years and grew up in the area. EPA in the day was a war zone.. but I think it has changed a lot.. I would at least drive through and see what can be rented and check the schools before you cross it off the list.

Thank you!

EPA is quite gentrifying story. Some area inside EPA is quite okay these days.

To be very honest , the way to survive in this location are three key things:
1. needs to own a house, and house in the are currently is quite affordable from its standard.
2. needs dual income family, with one side working at tech / finance / ; or maybe construction.

Lot of hard worker people, not just the one in tech, is very succesful in the area due to high income earner and lot of jobs.

I bought a foreclosure in EpA circa 82 ish for 15k :)

LOL, then you can claim your cap rate or IRR is 99999% LOL
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Carlos Ptriawan:

Quote from @Jay Hinrichs:

Quote from @Carlos Ptriawan:

Quote from @Myeasha Jones:

Quote from @Jay Hinrichs:

Quote from @Bjorn Ahlblad:

@Myeasha Jones East Palo Alto is not where you want to live, especially with your kids. It is a high crime area.

You are in for a very exciting and hopefully rewarding time Myeasha! Silicon Valley is amazing. So many opportunities to go down or up-it is really up to you!

I lived in Palo Alto for 10 years and grew up in the area. EPA in the day was a war zone.. but I think it has changed a lot.. I would at least drive through and see what can be rented and check the schools before you cross it off the list.

Thank you!

EPA is quite gentrifying story. Some area inside EPA is quite okay these days.

To be very honest , the way to survive in this location are three key things:
1. needs to own a house, and house in the are currently is quite affordable from its standard.
2. needs dual income family, with one side working at tech / finance / ; or maybe construction.

Lot of hard worker people, not just the one in tech, is very succesful in the area due to high income earner and lot of jobs.

I bought a foreclosure in EpA circa 82 ish for 15k :)

LOL, then you can claim your cap rate or IRR is 99999% LOL

I flipped it for 22K 7k in 82 was a lot of money
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
2 Reply
Hamp Lee IIIPro Member
Real Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
3y
If you find it's cheaper to buy (or want to find out), check out the Neighborhood Assistance Corporation of America (NACA).

NACA was formed in 1988 and provides an affordable option for potential first-time buyers:

✅ No down payment

✅ No closing costs or fees

✅ No mortgage insurance

✅ No consideration of credit score

✅ Below market fixed interest rate

There are several requirements to be eligible for the program, starting with attending one of their workshops.

https://www.naca.com/

I wish you all the best.
2 Reply
Myeasha Jones
OP
Property Manager · San Francisco, CA · Member since 2020 · 53 posts · 17 votes
3y
Quote from @Hamp Lee III:

If you find it's cheaper to buy (or want to find out), check out the Neighborhood Assistance Corporation of America (NACA).

NACA was formed in 1988 and provides an affordable option for potential first-time buyers:

✅ No down payment

✅ No closing costs or fees

✅ No mortgage insurance

✅ No consideration of credit score

✅ Below market fixed interest rate

There are several requirements to be eligible for the program, starting with attending one of their workshops.

https://www.naca.com/

I wish you all the best.

Thank you! Ironically they offered me a job as well!
1 Reply
Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
3y
@Myeasha Jones- based on the facts and figures you provide - this would be a huge issue and likely a major problem for you to survive ...assuming gross income of $8300 / month ..this would translate to approx $6500 take home ...assuming rent and childcare is 7K - you are underwater immediately every month
2 Reply
Myeasha Jones
OP
Property Manager · San Francisco, CA · Member since 2020 · 53 posts · 17 votes
3y
Quote from @Dave Skow:

@Myeasha Jones- based on the facts and figures you provide - this would be a huge issue and likely a major problem for you to survive ...assuming gross income of $8300 / month ..this would translate to approx $6500 take home ...assuming rent and childcare is 7K - you are underwater immediately every month

Thank you Dave. I had to reconsider the area and found something in MV for $2295 found a babysitter not like the facility she quoted $1800 … I’m thinking with that this cost I could
1 Reply
Myeasha Jones
OP
Property Manager · San Francisco, CA · Member since 2020 · 53 posts · 17 votes
3y
Quote from @Jay Hinrichs:

Quote from @Myeasha Jones:

Quote from @Jay Thomas:

When looking at the total compensation package, it's important to factor in other costs that may arise from taking the job. Such as, living closer to Palo Alto can be expensive as real estate prices in the area tend to be high. This could offset some of the benefit of a higher salary or equity stake. Furthermore, if you require full-time childcare then this must also be taken into account when evaluating your offer. All these additional costs should be factored into your decision-making process.

Thanks Jay.

chat GP answer LOL

😂 OMG LOL 😆 Definitely.
0 Reply
Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
3y
@Myeasha Jones- thanks for the follow up ....$4100 for rent and chaild care on tax home of alittle of 6K doesnt provide much residual income per month ...if you make it work - great and good luck
1 Reply
Jonathan R McLaughlin
Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
3y
good luck on this! sounds like you are piecing it together. One thing to think about is 100K-140K jobs tend to attract other 100K-140K jobs, many with more workable locations. Kids still young so it might not be a bad time to make the leap, deal with the commute and jump as you need to.
gotta be your own independent contractor, even with W2s.
Bravo you!
1 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
Quote from @Dave Skow:

@Myeasha Jones- thanks for the follow up ....$4100 for rent and chaild care on tax home of alittle of 6K doesnt provide much residual income per month ...if you make it work - great and good luck

nobody in the right mind would rent for $4k when rental is only $2k 10 miles apart
2 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
@Myeasha Jones When you truly factor in EVERYTHING, I don't think it's such a good deal. I mean $100k a year sound great (and congrats to you for commanding such a lofty salary :-) but look at the total costs of living in California. Food is way more expensive, gas, home repairs, almost everything. (I lived there for 4 decades before moving to a more affordable state)
Your after-tax take home is less than $6,000 a month by my calculations https://www.talent.com/tax-cal... and that does not leave much for mistakes and wiggle room.
Good luck if you go for it, but remember that the salary is only one part of the equation......
3 Reply
Myeasha Jones
OP
Property Manager · San Francisco, CA · Member since 2020 · 53 posts · 17 votes
3y
Quote from @Jonathan R McLaughlin:

good luck on this! sounds like you are piecing it together. One thing to think about is 100K-140K jobs tend to attract other 100K-140K jobs, many with more workable locations. Kids still young so it might not be a bad time to make the leap, deal with the commute and jump as you need to.
gotta be your own independent contractor, even with W2s.
Bravo you!
Thank you!!
0 Reply
Myeasha Jones
OP
Property Manager · San Francisco, CA · Member since 2020 · 53 posts · 17 votes
3y
Quote from @Carlos Ptriawan:

Quote from @Dave Skow:

@Myeasha Jones- thanks for the follow up ....$4100 for rent and chaild care on tax home of alittle of 6K doesnt provide much residual income per month ...if you make it work - great and good luck

nobody in the right mind would rent for $4k when rental is only $2k 10 miles apart

Right! the place was super nice that I got a quote for 5,130 for a 2x2 but I was like who is paying this… then a quote for 3500 for a 1 bedroom
0 Reply
Myeasha Jones
OP
Property Manager · San Francisco, CA · Member since 2020 · 53 posts · 17 votes
3y
Quote from @Carlos Ptriawan:

Quote from @Myeasha Jones:

Quote from @Jay Hinrichs:

Quote from @Bjorn Ahlblad:

@Myeasha Jones East Palo Alto is not where you want to live, especially with your kids. It is a high crime area.

You are in for a very exciting and hopefully rewarding time Myeasha! Silicon Valley is amazing. So many opportunities to go down or up-it is really up to you!

I lived in Palo Alto for 10 years and grew up in the area. EPA in the day was a war zone.. but I think it has changed a lot.. I would at least drive through and see what can be rented and check the schools before you cross it off the list.

Thank you!

EPA is quite gentrifying story. Some area inside EPA is quite okay these days.
To be very honest , the way to survive in this location are three key things:
1. needs to own a house, and house in the are currently is quite affordable from its standard.
2. needs dual income family, with one side working at tech / finance / ; or maybe construction.
Lot of hard worker people, not just the one in tech, is very succesful in the area due to high income earner and lot of jobs.
Thank you Carlos
0 Reply
Chris John
Member since 2020 · 671 posts · 937 votes
3y
Quote from @Carlos Ptriawan:
I have family work in Palo Alto and living in Stockton/Manteca as home price there can be bought for 300k cash.
Please don't convince anyone else to move to the valley. I can't get anywhere anymore because there's getting to be so much traffic! haha.

@Myeasha Jones
In all seriousness, this thread hits close to home and gives me anxiety! haha. I've lived in the valley since junior high and got a finance degree almost 30 years ago (blech). When I looked around for a job, the City seemed the obvious choice, but I couldn't bring myself to live in the city or to try the commuter lifestyle, so I didn't even look. I ended up with a non-finance, valley job and supplemented my smaller income with real estate. In the end, I'm happy with my decision, but I've always wondered what would've happened if I'd have given it a go and pursued my education. Tough choice, for sure. You definitely have my empathy having to make it!
Regardless of what you choose, may God bless your path!
1 Reply
Myeasha Jones
OP
Property Manager · San Francisco, CA · Member since 2020 · 53 posts · 17 votes
3y
Hi Chris and thank you! I like the idea of staying where I am for stability and finishing getting my RE license by taking the state exam. In my head, I think I could make the salary offer selling real estate where I am now and being considered an expert....
Taking the leap to SV allows me to network much more as far as people and exposure, the salary after doing the math isn't the best. But what job is?
0 Reply
Myeasha Jones
OP
Property Manager · San Francisco, CA · Member since 2020 · 53 posts · 17 votes
3y
Quote from @Chris John:

Quote from @Carlos Ptriawan:
I have family work in Palo Alto and living in Stockton/Manteca as home price there can be bought for 300k cash.

Please don't convince anyone else to move to the valley. I can't get anywhere anymore because there's getting to be so much traffic! haha.

@Myeasha Jones
In all seriousness, this thread hits close to home and gives me anxiety! haha. I've lived in the valley since junior high and got a finance degree almost 30 years ago (blech). When I looked around for a job, the City seemed the obvious choice, but I couldn't bring myself to live in the city or to try the commuter lifestyle, so I didn't even look. I ended up with a non-finance, valley job and supplemented my smaller income with real estate. In the end, I'm happy with my decision, but I've always wondered what would've happened if I'd have given it a go and pursued my education. Tough choice, for sure. You definitely have my empathy having to make it!
Regardless of what you choose, may God bless your path!

Thank you!
0 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
Quote from @Myeasha Jones:

Quote from @Carlos Ptriawan:

Quote from @Dave Skow:

@Myeasha Jones- thanks for the follow up ....$4100 for rent and chaild care on tax home of alittle of 6K doesnt provide much residual income per month ...if you make it work - great and good luck

nobody in the right mind would rent for $4k when rental is only $2k 10 miles apart

Right! the place was super nice that I got a quote for 5,130 for a 2x2 but I was like who is paying this… then a quote for 3500 for a 1 bedroom

I rent out my 3/2 SF for $3200 just 13 miles from there LOL
1 Reply
Gil Segev
Austin · Member since 2018 · 108 posts · 47 votes
3y
140K a year isn't going to be enough to live comfortably in the bay area unfortunately. Maybe if you choose somewhere >1.5 hours away you'll be able to make it work :(
1 Reply
John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
3y
@Myeasha Jones
I’m from Palo Alto and moved to Texas 24 years ago. This would be a hard pass for me. It’s very hard to survive on less than 150k/year in that area unless you commute far away. Other expenses out there will eat you alive. Don’t just look at housing and daycare.
1 Reply
Myeasha Jones
OP
Property Manager · San Francisco, CA · Member since 2020 · 53 posts · 17 votes
3y
Quote from @John Morgan:

@Myeasha Jones
I’m from Palo Alto and moved to Texas 24 years ago. This would be a hard pass for me. It’s very hard to survive on less than 150k/year in that area unless you commute far away. Other expenses out there will eat you alive. Don’t just look at housing and daycare.
Thank you
0 Reply

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