Newbie from Oakland, CA

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Newbie from Oakland, CA

Emme W.
Oakland, CA · Member since 2016 · 8 posts · 3 votes

Hello everyone, I'm looking to buy a duplex or triplex in Oakland or thereabouts and am have joined the forum hoping to get personal recommendations for local agents. I'm a little shy with my info so I won't say much more for the time being. As I read and get involved more I may naturally have more questions and comments. I did start a post with more detail in the Oakland forum as well. Thank you!

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Account Closed
Rental Property Investor · Oakland, CA · Member since 2014 · 730 posts · 1k+ votes
9y

@Adam London No such thing as average cap in Oakland. Lately I've been seeing 3-4% in Lake Merritt/Temescal, 5-6% in West Oakland, and 6-8% in East Oakland.

Good rule of thumb to calculate operating expenses on a small multifamily is between 35-40% of gross rents for expenses (not including mortgage payment). If the water is separately metered, then 35% is a good starting point, but it's always good to be conservative. I always underwrite my deals at 40% and then if the actuals are better, that's icing on the cake. However, some properties are at 50%, so be weary. 

Sadly, your deal above listed for $875K will probably sell for more than asking. There is just way too much cheap money flowing around right now and "investors" are chasing appreciation based on FOMO. 

There are plenty of deals in Oakland that offer a decent COCR. Lately I have been averaging 20-25% COCR. They are usually value add deals, but there are plenty. Be creative.

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  • Michael S.Pro Member
    Biggerpockets Support · Las Pinas, Metro Manila · Member since 2015 · 7k+ posts · 1k+ votes
    10y

    @Emme W.

    Welcome to the community. Great to have you here

    BiggerPockets
    0Reply
  • Emme W.
    OP
    Oakland, CA · Member since 2016 · 8 posts · 3 votes
    10y

    Thank you so much @Michael S..

    0Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    10y

    Welcome.

    0Reply
  • Emme W.
    OP
    Oakland, CA · Member since 2016 · 8 posts · 3 votes
    10y

    Thank you @Chris M. I appreciate the welcome. 

    0Reply
  • Tihanna Mccleese
    Oakland, CA · Member since 2016 · 10 posts · 7 votes
    10y

    Welcome aboard fellow Oaklander.

    0Reply
  • Emme W.
    OP
    Oakland, CA · Member since 2016 · 8 posts · 3 votes
    10y

    Thanks so much @Tihhanna Mccleese

    0Reply
  • Leslie Bandy
    Oakland, CA · Member since 2011 · 55 posts · 28 votes
    10y

    Hi Emme,

    I'm an Oakland resident, real estate investor and agent.   I'd be happy to answer any questions you may have.   

    Best,

    Leslie Bandy

    1Reply
  • J. MartinPro Member
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    10y

    Hi @Emme W. ,

    Welcome to BP! I own and invest in Oakland and Richmond. I personally think the market is overvalued right now, and I'm waiting until employment gains reverse again. But to each their own!

    @Mel Selvidge is an agent that works in the Oakland/Berkeley area, and could probably help you out. I am not an agent. Just an investor..

    1Reply
  • Marc Dela Cruz
    Bay Area, CA · Member since 2016 · 25 posts · 8 votes
    10y

    @Emme W.Welcome to BP! I work in Oakland as a mailman and do a lot of walking around the neighborhoods. I see a lot of "potential" (vacant, distressed, etc.) properties every single day. I'm currently still saving up for a down payment for my first deal, preferably an owner-occupied multi. Hope to see you around!

    @J. MartinHey! It seems like you know "hella" info about the Oakland/East Bay market. I'm still trying to figure out the market trends (still a newbie) and what investors in the area are currently doing/avoiding. Maybe we can all link up and chat during a meet up? :)

    3Reply
  • Ryan Landis
    Residential Real Estate Broker · San Mateo, CA · Member since 2013 · 585 posts · 264 votes
    10y

    @Emme W. welcome to BP! I would recommend attending one of the local BP meet ups if you can and asking around. The BP members that show up to those are a great resource.

    0Reply
  • Marlon Wilson
    Houston, TX · Member since 2013 · 1k+ posts · 114 votes
    10y

    Hi @Emme W.

    Welcome to Biggerpockets!

    0Reply
  • Paul Timmins
    Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    10y

    @Emme W.

    Welcome. Fill in the foundation below.

    Check out the Start Here page http://www.biggerpockets.com/starthere

    Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

    Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 100 past ones to catch up on.

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). You can Google to locate them and go to meetup.com

    Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook

    Consider checking out HUD homes for small multi's owner occupied gets first crack.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good Luck

    Paul 

    0Reply
  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    10y

    welcome to BP. 

    [email protected]
    0Reply
  • Courtland Stansberry
    Chicago, IL · Member since 2015 · 31 posts · 7 votes
    10y

    Welcome to BP!

    0Reply
  • Melissa Gittens
    Real Estate Broker · Windsor, CT · Member since 2015 · 1k+ posts · 268 votes
    10y

    @Emme W. Welcome ot Bigger Pockets

    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
    9y

    @Emme W.

    Did you ever find a property? I just purchased a duplex in Oakland.

    0Reply
  • Audrey James
    Real Estate Agent · Oakland, CA · Member since 2009 · 51 posts · 5 votes
    9y

    Welcome Emme W.

    Audrey J. (Realtor)

    0Reply
  • Nathan Bhat
    Los Altos, CA · Member since 2017 · 2 posts · 0 votes
    9y

    @Brian Garlington - We from the SF Bay Area and are interested in investment properties also.  I hear that cap rates are bad in BA.   Can you share how it's going with the duplex.  Cap rate or other stats would be useful.

    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
    9y

    @Nathan Bhat

    It's going great with the duplex my friend....starting to look for a 4plex now

    2Reply
  • Nathan Bhat
    Los Altos, CA · Member since 2017 · 2 posts · 0 votes
    9y

    Thanks.  What's the cap rate for the duplex?

    0Reply
  • Alissa Kronovet
    Investor · Garrison, NY · Member since 2017 · 26 posts · 6 votes
    9y
    Brian Garlington where in Oakland did you buy?
    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
    9y

    @Alissa Kronovet

    89th Avenue..........used my VA Loan and I'm House Hacking...........Later this year I will buy another MultiFamily using and FHA203K Loan

    3Reply
  • Maya Clark
    Real Estate Broker · Oakland, CA · Member since 2015 · 36 posts · 26 votes
    9y

    @Nathan Bhat cap rates in the BA vary depending on the specific city/neighborhood. As an example, a client is currently looking for 2-4 units in NOBE (North Oakland/Berkeley-highly desirable) to O/O w/5+% cap but everything we've seen has been low  like 3-4's.  Whereas another client has an off-market 4plex w/6% cap.  :-)

    0Reply
  • Iverem Rose
    Real Estate Agent · Brooklyn, NY · Member since 2014 · 250 posts · 60 votes
    9y

    @Emme W.

    Welcome to BP, Emme!!

    0Reply
  • Adam London
    San Francisco, CA · Member since 2016 · 53 posts · 14 votes
    9y

    HI All. Found this thread while looking for cap rates. Anyone know what average cap rates are for Oakland?

    Also, what is a good rule of thumb on a property to calculate operating expenses. Looking at a triplex listed at 875,000 Rental income is 45k/year. I ran the numbers and I would need to buy the place for closer to 650,000 to get any COCR with 25% down. Is this pretty standard in the Bay Area? Wondering how people are getting COCR's beyond appreciation. on the blog they talk about the 4 types of Income from Deals

    1. Appreciation

    2. Cash Returns

    3. Amortization: Paying down Mortgage using Rents

    4. Tax Shelter

    Guessing #2 is not common in the bay :(

    1Reply
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