Real Estate Investor · Solana Beach, CA · Member since 2015 · 12 posts · 4 votes
Hi Everyone,
I'm totally new to real estate investment but super excited to learn more about it. I live in San Diego area but I'll be moving with my family to the San Francisco area this summer. I'd like to buy and rent in multi-family units to accumulate wealth and also to increase cash flow.
I've been reading like crazy the info on this site and also ordered many books at the library to help with the learning curve. If you have a great book that has helped you a lot with learning real estate investment, let me know. :)
Also, if anyone has experience with rental properties in the Bay Area, I'd appreciate any tips you might have.
Investor · San Francisco, CA · Member since 2015 · 60 posts · 46 votes
11y
San Francisco Realtor, landlord, and flipper here. You are entering a very very tough yet very very profitable market if done right and in the long term. More so with equity appreciation than cash flow. First thing to know is that San Francisco, Oakland, and Berkeley all have rent control. Way too much to go into here but lots of info online. There are differences between the ordinances of the three cities. And even with that, not all properties are rent controlled. Specifically in SF, nothing built after a specific date (cannot recall exact right now) in 1979 is not rent controlled. Also applies to use of a building by yourself. Just because you own it does not mean you are able to live in it. Of course vacant properties or those newer ones not rent controlled are in more demand and demand a higher price. Or my strategy: a single family home is not rent controlled for the actual lease amount (just other elements), nor is a condo. So I have a couple houses, a couple condos in the city. And also invest outside of the city north or Berkeley in the community of Richmond. Would be happy to chat more. Cheers
Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
11y
@Andrea DeBell Hi and welcome to BP! Planning on purchasing investment properties in San Francisco? I hope you've got a lot of cash. Thought about investing out of state?
Investor · San Francisco, CA · Member since 2014 · 98 posts · 36 votes
11y
Hi Andrea,
Welcome to BP!
With an average sale price of $1.4million, you will definitely need a lot of liquidity to buy in San Francisco. We also have some of the strictest and complex rental and eviction regulations, and they are constantly changing. Landlording here is not for the faint of heart!
For my first go, I would check out Oakland, the Peninsula. You will have a better chance of cash flow there.
Real Estate Investor · Solana Beach, CA · Member since 2015 · 12 posts · 4 votes
11y
Hi @Joe Moore - Thanks for the tip. I'm embarrassed to say but I'm a bit scared of fixer uppers. Fixer uppers are probably not intimidating to you given your handyman and construction background. :) I can totally understand the financial potential of fixer uppers though.
Real Estate Investor · Solana Beach, CA · Member since 2015 · 12 posts · 4 votes
11y
@Larry Fried - Given the high prices in SanFran, I actually have been researching buying property out of state. Although, I'd like to have something close by in case I manage it myself instead of getting a PM. Another option is looking into Oakland, like @Susan Truax said, which I have been considering for a while. Still pricey but not as bad as the city.
@Susan Truax - I see your point. I did see people mentioning on another post that California wasn't landlord friendly and that Arizona and Colorado were better states for landlords. Good advice on the peninsula. I heard that Rockridge is promisingthat.
@Brandon Turner -
I'm on top of this (or at least I think I am). I already set up my alerts and downloaded your guide (although I haven't read it yet). So much good info here that it's literally consuming all my free time haha. I did read the posts you mentioned except for the one of best real state investing books which will be super handy. Thanks for all the good work you do here!!! I mean it!
Real Estate Investor · Solana Beach, CA · Member since 2015 · 12 posts · 4 votes
11y
@Brandon Turner I'm on top of this (or at least I think I am). I already set up my alerts and downloaded your guide (although I haven't read it yet). So much good info here that it's literally consuming all my free time haha. I did read the posts you mentioned except for the one of best real state investing books which will be super handy. Thanks for all the good work you do here!!! I mean it!
Real Estate Investor · Solana Beach, CA · Member since 2015 · 12 posts · 4 votes
11y
@Larry Fried I hit a super valid point. Given the high prices in SanFran, I actually have been researching buying property out of state. Although, I'd like to have something close by in case I manage it myself instead of getting a PM. Another option is looking into Oakland, like @Susan Truax said, which I have been considering for a while. Still pricey but not as bad as the city.
Real Estate Investor · Solana Beach, CA · Member since 2015 · 12 posts · 4 votes
11y
I see your point. I did see people mentioning on another post that California wasn't landlord friendly and that Arizona and Colorado were better states for landlords. Good advice on the peninsula. I heard that Rockridge is promisingthat.
Investor · San Francisco, CA · Member since 2015 · 60 posts · 46 votes
11y
San Francisco Realtor, landlord, and flipper here. You are entering a very very tough yet very very profitable market if done right and in the long term. More so with equity appreciation than cash flow. First thing to know is that San Francisco, Oakland, and Berkeley all have rent control. Way too much to go into here but lots of info online. There are differences between the ordinances of the three cities. And even with that, not all properties are rent controlled. Specifically in SF, nothing built after a specific date (cannot recall exact right now) in 1979 is not rent controlled. Also applies to use of a building by yourself. Just because you own it does not mean you are able to live in it. Of course vacant properties or those newer ones not rent controlled are in more demand and demand a higher price. Or my strategy: a single family home is not rent controlled for the actual lease amount (just other elements), nor is a condo. So I have a couple houses, a couple condos in the city. And also invest outside of the city north or Berkeley in the community of Richmond. Would be happy to chat more. Cheers
Austin, TX · Member since 2015 · 102 posts · 33 votes
11y
Welcome to the site, I'm new as well to BP, experienced investor.
for me, out of state distressed properties have been a real blessing. I've been lucky to make some good networking contacts for OH and TX that allowed me to pick up affordable sfhs for top end 60k bought with solo 401k cash. 11-12 cap. SF is awesome, been there three times but not where I would want to break in as a rookie :()
Real Estate Investor · Silicon Valley, CA · Member since 2012 · 169 posts · 52 votes
11y
@Andrea DeBell Hi Andrea, welcome!! I hope you're excited about your move to my neck of the woods! I'm on the peninsula about 20 minutes south of SF. Thank goodness the Bay Area is a big ole place, where prices vary widely. I've been multi fam owner on the peninsula for a long time now.
Yes, its too tenant friendly here, but its all I've known so doesn't seem too bad and good screening and qualifying go a long way.
Welcome (soon) to the Bay! I live next to Lake Merritt, and love Oakland! I own or co-own 2 4plexes, a duplex, and 2 single family homes, and have an Airbnb unit and a few other units I make some money off of. They are all in Oakland and Richmond. Not sure if you were talking about 2-4 or 5+ units when you were talking about multifamily, but you mentioned looking at Oakland, so happy to field some questions for you. I still get about the "1% rule", but hard to find.. Others here are making money out of state also. Come visit the meetup group when you arrive and get some personal feedback from others’ investments! :)
Missed you at the SF meetup on Thurs! Check out my signature for the group. I own in Richmond too, and Oakland. Even if buying in SF, you should be able to take owner-occupied possession of one unit with just cause, assuming month to month lease and they aren’t protected tenants, right? I know Oakland rent control and just cause much better than SF. You might want to touch base with @Amit M. , who invests in SF also. And let’s chat sometime!
Surprisingly, Vallejo doesn’t have any more cash flow than a lot of Oakland and Richmond, although I keep an eye on it. While prices are roughly on par, the rents are quite a bit lower. Longer commute.. Ferry to SF is nice, but expensive, so I don’t think people on the lower end who live there (which tend to be the places that produce cash flow) can enjoy the ferry. So they have a long trek to work :( Sacramento does have higher cash flow than basically everywhere in the Bay, especially for single family homes. Appreciation potential.. I don't know the area as well..
Real Estate Investor · Solana Beach, CA · Member since 2015 · 12 posts · 4 votes
11y
@J. Martin you read my mind. I was thinking about checking out meetup groups in the Bay Area once I arrived there. I'll definitely visit your meet up and the one @Johnson H. hosts in San Jose. Btw, the announcement for the next San Jose meetup just popped up on my alert here. :)
Real Estate Investor · Solana Beach, CA · Member since 2015 · 12 posts · 4 votes
11y
Great tip. I didn't really know about the rent control issue there. Richmond also sounds like a good opportunity. Thanks, I'd love to chat more. :) Blessings
You can try Vallejo, or even as far as Davis (UC Davis) or Sacramento? Entry into market is less expensive.
Good tips! Thanks! I'd have to do more research on that. But then again, I'm at a point that I'm doing research on everything since I feel like a baby taking its first steps in REI. :)
Real Estate Investor · Solana Beach, CA · Member since 2015 · 12 posts · 4 votes
11y
@Eva Salas I'm super excited about the move but also a tiny bit scared since there are a lot of decisions to be made. I'm a natural optimistic so I know it's all going to work out great. Thanks for the info you've shared thus far and I'll be picking your brain again in the near future. :)
@Account Closed I know what you mean about breaking in as a rookie in SF. A bit scary for sure!! I lived in Houston for 12 years but Austin is my fav city in TX. The prices in TX are really great compared to CA but my future now is in CA so I'm trying to invest close by. Lots of research on my horizon...
Real Estate Investor · Berkeley, CA · Member since 2014 · 143 posts · 91 votes
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@Andrea DeBell Welcome to the community. I think you will find the bay area following here is strong. Any questions you have will not only be answered quickly and clearly, they might even start a 5 page dialogue! You've come to the right place.