Specialist · San Francisco, CA · Member since 2012 · 72 posts · 28 votes
Hi everyone,
I've been out of the game for a while.
I feel like I'm starting from scratch it's been so long since I've been to a meet up, etc. I'd like to find a duplex to invest in Oakland. It looks like there are some decent deals on Redfin. Then maybe rent it out to senior tenants from the Housing Authority.
Of course I want to cash flow, but I only have $40K saved. Maybe I should look out of state or is there some different financing options available? For reference, I own a SFH in San Francisco.
I feel like I'm starting from scratch it's been so long since I've been to a meet up, etc. I'd like to find a duplex to invest in Oakland. It looks like there are some decent deals on Redfin. Then maybe rent it out to senior tenants from the Housing Authority.
Of course I want to cash flow, but I only have $40K saved. Maybe I should look out of state or is there some different financing options available? For reference, I own a SFH in San Francisco.
Any idea where to start is greatly appreciated.
I think I’d start by deciding whether your priority is staying close enough to self-manage or maximizing cash flow. Those two goals can lead you to very different markets.
With $40k saved, I’d also spend some time comparing owner-occupied financing versus investment property financing if you’re open to living in one unit of a duplex. The numbers can look very different depending on the loan structure, and preserving some reserves after closing is just as important as having enough for the down payment. I wouldn’t rush into an out-of-state purchase unless you’ve already built a strong local team to support it.
I feel like I'm starting from scratch it's been so long since I've been to a meet up, etc. I'd like to find a duplex to invest in Oakland. It looks like there are some decent deals on Redfin. Then maybe rent it out to senior tenants from the Housing Authority.
Of course I want to cash flow, but I only have $40K saved. Maybe I should look out of state or is there some different financing options available? For reference, I own a SFH in San Francisco.
Any idea where to start is greatly appreciated.
With $40K saved, I’d definitely compare Oakland against a few out-of-state markets before stretching your budget. The Midwest can give you a much lower entry point and potentially better cash flow on duplexes, while still allowing you to use a property manager and local team. I’d also look into owner-occupied financing if you’re willing to live in the property, but either way, I’d start by working backward from the monthly payment and realistic rents rather than chasing the cheapest property.
Specialist · Long Beach, CA · Member since 2011 · 873 posts · 393 votes
1mo
Our office is near Oakland and my colleague works there. And most properties there are selling pretty fast compared to other parts of California. But you are still going to deal with terrible landlord laws being here. If you only have $40K to use, you won't even find a duplex in the midwest to support the down payment.
I have a good friend who is building brand new duplex's in Oklahoma City for $350K. You will need around $90K for something like that.