All Forum Posts by: Andrew Muff

@Tim McGarvey I haven't checked the MLS recently, but I just literally closed yesterday on a duplex in East Oakland. Purchased at $630k. Projecting to cashflow $2200 net after ins, taxes, and mortgage. The owners delivered it empty as they are moving to New Orleans so no past tenant issues. The deals are out there still.

@J. Martin I get what you are saying about the market conditions. My comments are more focused on that specific 10 blocks of W Oakland where I used to live. Given a flat market (i.e. All other factors being equal) that neighborhood will appreciate relative to the rest of the market because of the dramatically improving conditions on the ground. It used to be a place where people routinely dumped their trash on the streets. If you drive through there today, there are massive construction projects going on everywhere. Two years ago we had prospective tenants call to cancel their screening apointments after driving through the neighborhood. Now it's becoming a hipster destination for ex-SF transplants. If I keep finding good cash flowing deals, I'll continue to buy in the face of softening market conditions.

That said, you are correct. I would never buy a negative cash flowing investment. 

Hey Sudeep. Welcome to RE Investing. I've owned a condo in what I think is the exact neighborhood you described since 2012. It's on the Target end of Mandela Parkway and my wife and I lived there for 3 years before moving to the Oakland Hills. It's just over a mile from the W Oakland BART station and I can say from experience that it's close enough to walk if you have no other choice, but a mile is too far to do every day for your commute. My wife just weighed in on this and said a 10 mins walk (about a 1/2 mi) is acceptable. That said, if someone was less lazy than I am, a mile is an easy bike commute and there is plenty of secured bike parking at BART.

Other than that I think you have your bases covered. The condo we have just appraised for slightly less than your target for the SFR and as that neighborhood improves we expect the appreciation we've experienced to continue. It was a VERY rough neighborhood when we originally purchased, but now most of the homeless are gone, they knocked down the abandoned warehouse they were living in, and some of the recycling centers are closing up and leaving. There is a lot of new construction going on there and in another 1-2 years it will be a completely redeveloped area close to BART and freeways.

I say you'll do just fine on that purchase although I can't imagine that rents can continue to climb. But then I've been saying that and have been wrong for years as well.

I could go on about tenant selection as well, but I think that is enough for one post. Best of luck!

@Simon Stahl There was also that great article in the recent BP newsletter. I'm helping out a friend in a similar situation and had forwarded it to her (no, I'm not a financial planner - just another RE investor).

https://www.biggerpockets.com/renewsblog/invest-re...

There is a lot of information to try to unpack there. But it gives you a good idea of how careful you need to be about mixing tax deferred and after-tax funds. I always wondered why my Fidelity or ETrade IRAs don't offer these and it seems that it's pretty specific and not common for the general public, so why would they bother. But then I would imagine that the companies that offer the SDIRA should be full of helpful info and perhaps even their customer support could guide you. I get that this is a very DIY perspective. So if you are just looking for someone to do it all for you, then best of luck finding that unicorn of a financial planner that specializes in this.

@Ori Skloot - Thank Ori. Looks like you responded right when I was typing.

@Matt Pendleton @Ori Skloot - I'm curious about that too. I need to pay for one very soon. The only thing I understand from having done  is that you need to pay a $4500 deposit into escrow during the purchase which goes to EBMUD. Then once you've had the inspection and work done - and pay for it out of your own pocket, EBMUD refunds you your deposit. It's how they ensure you don't just blow them off after you buy a house.

But if there's something else that I don't know about, I'd love to hear details! Thanks in advance.

Hi all, I've searched the forums and didn't find what I'm looking for so posting here.

Does anyone have a lawyer they can recommend in California that includes real estate as a specialty?

Now here's the kicker -- Can someone recommend one that charges a moderate fee? I'm looking for some basic partnership forming activities, but will expect additional issue to come down the line as part of the ongoing business and would like someone that I can keep going back to.

Thanks in advance!

Hi @Maya Clark. Yes, that appears to be correct. I went back and reread the PDF. It is pretty clear there is a distinction in the definition of housing between less than a week, and a week or more. It also says they are looking into changing the rules to accommodate AirBnB and the like (STRR - Short term residential rentals). If you know of any updates regarding what the city is doing here, please post a link. Thanks!

@Claratisha Davis Welcome! Enjoy the ride!

@Jeff Wallenius I grew up in Sandy and was looking to 1031 some family SFRs into multifamily up there. Prices are outrageous and no joke in and around Portland!! Cost per units are equal to what I'm seeing in and around Oakland. What's up with that?

It's also worth noting that Oakland does not actually allow short-term rentals al la AirBnB. This PDF has been making the rounds. So trying to deal with an illegal unit that way in Oakland is also inviting trouble.

Adding myself to the thread to be sure I don't miss what you come up with, @Sean Walton. I second Saj's recommendation. If you are thinking weekends, then, yes, close to a BART line to make it easy for East Bayers to join as well would be great. Thanks!