Updated almost 8 years ago on . Most recent reply
New Member From Bay Area,CA
Hello Bigger Pockets Community, My Name is John, 27, Bay Area native seeking more knowledge on the Real Estate Platform. Looking to invest in my first deal in multifamily units and open to any suggestions or mentor willing to teach someone willing to learn
Most Popular Reply
Hi John,
Multi family in the bay area is tricky. Multi family in Oakland value add can be obtained but it's capital intensive to partner with people to help them find housing else where.
Most buildings don't quality for a 75 LTV more 65 or 70 sometimes 60 :-/
If you can partner with some other owner who has units for cheap to offer alternatives.
Unit rehab is also a LOT because you need to change the windows out to double or triple pain in many areas as the young people that do burn outs on their moped or dirt bike can be bothersome and turn non section 8 tenants away.
Deferred maintenance will hurt your pockets.
If you need a 65 to 70 LTV that will also hurt your pockets. 5+ units in the bay It's is NOT for the timid or people with modest incomes unless you have access to a LOT of cheap credit.
Proforma upside are not usually easy to get as most tenants have been in place for a LONG time and can't afford the current market rate.