New to Bigger Pockets Bay Area, CA! BRRR, Short Term, OOS

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New to Bigger Pockets Bay Area, CA! BRRR, Short Term, OOS

Collin Chan
Investor · Dublin, CA · Member since 2019 · 167 posts · 134 votes

Hi all!  I've been doing real estate off and on since our first purchase in 2003.  We have 2 rental properties including a house in San Jose and a Condo in Dublin.  We currently live in our own home in the Tri-Valley area and I've already attended some meet ups and am starting to research real estate again.  I found Bigger Pockets through youtube and have been watching videos and listening to podcasts for the past 5 months gathering information to figure out what we want to do next.

Recently we bought a home up in Napa Valley upcountry that we intended to rehab and use for a vacation rental as well as build an ADU to add another rental space or use for ourselves. Honestly, we probably jumped into a large BRRRR without having done one before and without much background so looking forward to asking more questions from this great forum as we go through the project.

Also, as I've been listening to many podcasts and attending meetups, it seems like most Bay Area members are looking into out of state investing.  This is another area I'm interested in with the possibility of doing a 1031 for our San Jose house into an out of state multifamily.

Looking forward to meeting and chatting with you in the future!


Collin

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Avi Garg
Rental Property Investor · Concord, CA · Member since 2016 · 499 posts · 219 votes
6y

@Tyler Jahnke Please send me the details of your Oakland meetup. 

@Collin Chan@Rachel Bier@Ryan Heywood I would like to attend the napa meetup as well. Been thinking about a vacation rental with ADU there.

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  • Tony Lin
    Rental Property Investor · Fremont, CA · Member since 2017 · 125 posts · 75 votes
    6y

    Welcome. There are a lot of ppl here that invest locally in the Bay Area as well as out of state. What do you want to focus on? 

    0Reply
  • Mike Bolen
    Investor · Napa, CA · Member since 2016 · 95 posts · 62 votes
    6y

    @Collin Chan Welcome! I’m in Napa Valley also. Which city did you buy your investment property in?

    0Reply
  • Ryan Heywood
    St. Helena, CA · Member since 2016 · 147 posts · 59 votes
    6y

    @Collin Chan the ADU is a good idea, you'll want to tread carefully with the vacation rental. Napa County limits short term rentals to no less than 30 days. We are getting ready ourselves to start an ADU project in Saint Helena.

    https://napavalleyregister.com/news/local/napa-county-cracking-down-on-illegal-short-term-vacation-rentals/article_61303d46-8708-5861-9ac6-47c413eb3db1.html

    0Reply
  • Collin Chan
    OP
    Investor · Dublin, CA · Member since 2019 · 167 posts · 134 votes
    6y

    @Tony - Aside from out BRRRR in Napa Valley, we are primarily looking out of state. I've already started talking to people in Arizona and Florida as primary locations.

    @Mike - We bought up in St Helena. Currently we have a contractor just going through architectural drawings and working on septic infrastructure. 

    @Ryan - yup saw all the restrictions around short term rental. The house we bought was on VRBO and Airbnb as a monthly rental so at least that part we are somewhat ready for although it would be great to be able to get a licence. Let's trade notes on the ADU. We can meet up at a winery one weekend.

    0Reply
  • Brian Garlington
    Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    6y

    Welcome to BP Collin!

    0Reply
  • Collin Chan
    OP
    Investor · Dublin, CA · Member since 2019 · 167 posts · 134 votes
    6y

    Thanks Brian!

    0Reply
  • Tyler Jahnke
    Rental Property Investor · Oakland, CA · Member since 2016 · 341 posts · 643 votes
    6y

    Hey @Collin Chan - my friend and I host a monthly meetup in Oakland if you're in the area. Hit me up if you want more details! We'd love to see you other there sometime!

    -Tyler

    0Reply
  • Mark Keeler
    Fremont, CA · Member since 2016 · 25 posts · 19 votes
    6y

    @Tyler Jahnke, I would like to attend your meetup in Oakland.

    0Reply
  • Collin Chan
    OP
    Investor · Dublin, CA · Member since 2019 · 167 posts · 134 votes
    6y

    @Tyler - Sounds great.  Let me know or if you have a meetup, I can sign up for your local one as well.  Oakland (depending on what part) is less than 30 mins away.  

    0Reply
  • Rachel Bier
    Investor · Napa, CA · Member since 2016 · 77 posts · 80 votes
    6y

    Hi Collin, I'm based in St Helena and also invest out of state.

    @Ryan Heywood @Collin Chan let's meet up for coffee or wine :)

    Are you guys going to J. Martin's RE Summit in Oakland in a couple of weeks?

    0Reply
  • Collin Chan
    OP
    Investor · Dublin, CA · Member since 2019 · 167 posts · 134 votes
    6y

    @Rachel Sounds great!  We belong to Beringer and Sterling so free tastings there for I'm sure with you guys being locals have other options.  Feel free to message me.

    I haven't heard about the summit but I'll look around for more info.  Thanks

    0Reply
  • Rachel Bier
    Investor · Napa, CA · Member since 2016 · 77 posts · 80 votes
    6y

    @Collin Chan here's the info...https://www.biggerpockets.com/forums/521/topics/749405-5th-sf-bay-summit-feb-8-and-9-2020-join-the-reunion?page=1#p4673269

    0Reply
  • Ryan Heywood
    St. Helena, CA · Member since 2016 · 147 posts · 59 votes
    6y

    @Rachel Bier Hope all is well! We'll have to have a small get together up here is St Helena, I'm always game for either coffee or wine. Picked up a four-plex in Phoenix since we last spoke and would love to hear about what you and Ethan have been up to. Have you been to the summit?

    @Collin Chan awesome, seems you are up to speed. I'd love to chat ADUs, I'm hoping to kick mine off here in the next month. I'm out in the Sylvaner area, most southwest part of town. 

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Collin Chan:

    Hi all!  I've been doing real estate off and on since our first purchase in 2003.  We have 2 rental properties including a house in San Jose and a Condo in Dublin.  We currently live in our own home in the Tri-Valley area and I've already attended some meet ups and am starting to research real estate again.  I found Bigger Pockets through youtube and have been watching videos and listening to podcasts for the past 5 months gathering information to figure out what we want to do next.

    Recently we bought a home up in Napa Valley upcountry that we intended to rehab and use for a vacation rental as well as build an ADU to add another rental space or use for ourselves. Honestly, we probably jumped into a large BRRRR without having done one before and without much background so looking forward to asking more questions from this great forum as we go through the project.

    Also, as I've been listening to many podcasts and attending meetups, it seems like most Bay Area members are looking into out of state investing.  This is another area I'm interested in with the possibility of doing a 1031 for our San Jose house into an out of state multifamily.

    Looking forward to meeting and chatting with you in the future!


    Collin

     Welcome aboard Collin.

    0Reply
  • Collin Chan
    OP
    Investor · Dublin, CA · Member since 2019 · 167 posts · 134 votes
    6y

    Thanks @James Wise.  Glad to be here!

    1Reply
  • Victor Tran
    Member since 2017 · 4 posts · 2 votes
    6y

    @Collin Chan welcome aboard! Glad to see someone else from the Bay Area on here. I’m starting to purchase a rental property and there’s a lot for me to learn. Mind if we connect?

    0Reply
  • Victor Tran
    Member since 2017 · 4 posts · 2 votes
    6y

    @Tyler Jahnke — I’m new to rental real estate investment and I live in the Bay Area. Looking to purchase my first rental property but before I do that, there’s a lot to learn. Interested to connect?

    1Reply
  • Avi Garg
    Rental Property Investor · Concord, CA · Member since 2016 · 499 posts · 219 votes
    6y

    @Tyler Jahnke Please send me the details of your Oakland meetup. 

    @Collin Chan@Rachel Bier@Ryan Heywood I would like to attend the napa meetup as well. Been thinking about a vacation rental with ADU there.

    2Reply
  • Collin Chan
    OP
    Investor · Dublin, CA · Member since 2019 · 167 posts · 134 votes
    6y
    Originally posted by @Victor Tran:

    @Collin Chan welcome aboard! Glad to see someone else from the Bay Area on here. I’m starting to purchase a rental property and there’s a lot for me to learn. Mind if we connect?

    Sure sound s good.  Always great to increase that network! 

    0Reply
  • Collin Chan
    OP
    Investor · Dublin, CA · Member since 2019 · 167 posts · 134 votes
    6y
    Originally posted by @Avi Garg:

    @Tyler Jahnke Please send me the details of your Oakland meetup. 

    @Collin Chan@Rachel Bier@Ryan Heywood I would like to attend the napa meetup as well. Been thinking about a vacation rental with ADU there.

     Hi Avi, I'll let you know when we have more details.

    0Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    6y

    @Collin Chan: We're pretty much the same, I'm in Pleasanton with rental in San Jose. I'm now focusing the energy to invest OOS, In particular, I like Alabama. 

    I'm thinking of 1031ing the rental as well, I've been comparing MF vs SFR, I've talked to few vendors.Last week I attend a seminar on new construction 4plex in UT/AZ, but found that CoC/cap rate is better with SFH. I also found 1031 to MF is extremely difficult and time-sensitive.

    I've calculated with ADU addition as well, if the property is added with ADU, the gross income is double; but if one do 1031 to multiple smaller home OOS, the gross income is tripled.

    For MF, rather than 1031, I prefer just to do MF syndication with debt or equity offering. Direct from the sponsor. Less hassle and have preferred IRR.

    0Reply
  • Collin Chan
    OP
    Investor · Dublin, CA · Member since 2019 · 167 posts · 134 votes
    6y

    @Carlos Ptriawan Thanks for your input.  I've actually done a 1031 which was a good experienced.  The time sensitivity takes some planning ahead of time and more work to also find something to work within those constraints but feel like there's a lot of companies that can help make this successful.

    My strategy with MF is to leverage more.  Granted you could probably find multiple houses out of state to buy in a 1031 but that seems more difficult to find enough to be greater than the like-for-like requirement however, maybe it is possible if it's a seller unloading multiple properties in bundle?

    For the ADU, that's for our Napa Valley house and it's actually not the best strategy for wealth growth but it gives us a cheaper place to stay when we visit rather than staying at hotels up there. It's more of a retirement goal but gives us some flexibility and we have other assets focused on driving more income properties. :)

    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    6y

    @Collin Chan That's great strategy. Yes building ADU is good for retirement planning and even 'stay-free' in NorCal. Which area that you're looking for MF ?

    0Reply
  • Collin Chan
    OP
    Investor · Dublin, CA · Member since 2019 · 167 posts · 134 votes
    6y

    Still trying to decide but maybe targeting Phoenix and Vegas since it's on the West Coast.  I'm open though to other options and set up meetings this week with investors on BP to learn more!

    0Reply
  • Sameer Bhalesha
    Investor · Houston, TX · Member since 2017 · 34 posts · 29 votes
    6y

    Welcome to BP, Collin! 

    Many investors are looking out of California due to low cap rates and tenant-friendly laws. You may also want to look into opportunity zones along with your 1031 exchange. 

    I have sent you an invite. 

    0Reply
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