Newbie from San Francisco, CA

16 Replies

Hi Everyone,

I'm a (hopefully soon to be) investor looking to learn as much as possible before jumping into real estate investing. I've been reading books, blogs, watching videos, and analyzing a few northern California markets looking for deals.

I'm interested in connecting with local investors to share and bounce ideas off each other.

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Welcome Brad! I am also a Bay Area RE investor. We have been looking at flips in SF and have been getting outbid by all cash investors. Crazy market we have here. @Kimberly Keesler would love to connect and chat about local opportunities. We have amazing contractors that we work with regularly and would like to get into an SF property for flip soon.

@Brad Johnson , my brother and his family live in Phoenix and when I went out to visit I couldn't believe how cheap properties are there. One of our good friends from high school is also out there as a realtor, so I feel like i have some help on the ground. I've been evaluating properties for about 2 months, trying to find an SFH with at least a $350 a month cashflow.

hey @Julie L.  I tried to do an Oakland flip with 2 friends on a property that was a complete tear down, even the foundation needed to be redone, and the seller's rejected our offer of $420K.   Have been thinking of looking in more North Bay but not sure how far I have to go before houses become affordable. 

Welcome, @Brad Johnson .

@Kimberly Keesler , Solano County.

@Julie L. , cash is king in that part of the SF market. I've got a few folks in the East Bay using Fannie Mae financing for flips successfully. One of them is an agent that I'm about to have to put on "flipping pause" until she files her 2016 taxes (she doesn't know this yet) once this current deal closes. That might be a useful angle for you.

Originally posted by @Julie L. :

@Chris M. fannie mae financing for flips? Would love more info on this. 

 There is a narrow band of flips that are so crummy that retail owner occupant buyers don't want them, but they are still complete and functional homes. 

Example: the kitchen is nasty and hasn't been updated in 60 years and has yellow walls from cigarette smoke, but it's a complete kitchen. The oven that hasn't been cleaned in 20 years works. The 1970s fridge still works. You get the idea.

Fannie Mae technically has no issue with that kitchen.

Let's suppose the kitchen isn't quite complete. Suppose it has no oven. Is it worth $400 for a new/used oven to throw in there if it keeps you away from hard money and multiple points up-front? I think so.

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@Julie L. we offered all cash, $420K for a house that needed to be teared down completely.  even the foundation was shot and it was rejected.  We went through the place with our contractors and the estimate to rehab was $150K minimum.  Felt it was too risky to offer more since this would be my first major renovation, and we weren't convinced we could sell it for that much of a profit.

@Brad Johnson @Julie L. @Kimberly Keesler

What kinds of properties are you looking for in the North Bay?

If you are looking for properties up in the North Bay, come take a look. Take a week end and come see what we have to offer - not just in wine.

Best case scenario you find a market that fits your investing goals and you can find the your next deal. Worse case scenario - you put in the work, have a great weekend and have an enjoyable business trip.

If you want to PM me and tell me what kind of properties are right for you, I can get you pointed in the right direction.

@Kimberly Keesler $150k for a complete rebuild including foundation? You must have a great contractor! We offered on a home SF that needed some foundation work and would have been almost a complete rebuild, salvaging some of the framework from the original home and we were looking at $500-600k. This was on a 2200 sf lot. 

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