Investor · San Francisco, CA · Member since 2015 · 201 posts · 95 votes
Just saw this near my office at Oak/Franklin, it's a bit crushing and makes me dig my heels in deeper to my rent controlled apartment... while continuing to invest in places like Texas, Florida, Ohio, and Wisconsin.
There is certainly money to be made in the Bay Area real estate market but these are high stakes and cashflow is inconceivable at this point. This $712K 1/1 would probably rent for around $3,600.
I've been glad to invest in number of flips and developments in the East Bay that worked out quite nicely, but just out of curiousity is anyone successfully buying for cashflow in SF these days?
There is certainly money to be made in the Bay Area real estate market
Ironically, not if you use Unison. There's a reason they advertise in high appreciation markets. It's pretty transparently an equity/appreciation harvesting scheme. The term for a mortgage wherein you owe more and more each month is "negative amortization," but they are effectively illegal now. So basically they just found a way to call it "not a mortgage."
Thank you for the information, I have been solicited by Point and Unison, to access my home equity. I was thinking these might be a decent deal for me - they claim these "loans" can be repaid at any time, and I am not expecting any meaningful appreciation in my (Silicon Valley) places for a few years. There is almost no fine print on these websites.
There is certainly money to be made in the Bay Area real estate market
Ironically, not if you use Unison. There's a reason they advertise in high appreciation markets. It's pretty transparently an equity/appreciation harvesting scheme. The term for a mortgage wherein you owe more and more each month is "negative amortization," but they are effectively illegal now. So basically they just found a way to call it "not a mortgage."
@Chris Mason - yah I had to Google what Unison was and saw they are exactly as you described. To me, the only real rational reason a buy-and-hold investor would purchase in SF would be for the appreciation - they you'd be giving that up for some help with the down payment. I suppose it's good to have Unison as an option if it makes sense for your situation but it seems like a raw deal to me.
@Ryder Meehan - Depressing. With Scott Weiners SB50 potentially out of the policy framework again the picture looks more and more grim. I agree for any type of cash flow, SF is a no go.
There is certainly money to be made in the Bay Area real estate market
Ironically, not if you use Unison. There's a reason they advertise in high appreciation markets. It's pretty transparently an equity/appreciation harvesting scheme. The term for a mortgage wherein you owe more and more each month is "negative amortization," but they are effectively illegal now. So basically they just found a way to call it "not a mortgage."
Thank you for the information, I have been solicited by Point and Unison, to access my home equity. I was thinking these might be a decent deal for me - they claim these "loans" can be repaid at any time, and I am not expecting any meaningful appreciation in my (Silicon Valley) places for a few years. There is almost no fine print on these websites.