All Forum Posts by: Anthony Barbato

Hello,

Has any assisted living investor had success finding facilities licensed for over 30+ residents in the area?

The market is saturated with 6 bed facilities. There are many smaller properties available, but nothing on the larger side. Our company is going to be purchasing a new assisted living facility by the end of the year but we have not found many properties for sale. It is normal to be sold off market in order to not disrupt the residents or the staff. We have worked with prominent brokers for assisted living facilities but we have not found any that are available. Has anyone had success prospecting for these 30+ unit RCFE properties and found off market deals?

Thank you

@Brian Sparr Words of wisdom! I appreciate the thorough feedback. I am representing the investor on the buy side and they are planning on rehabbing the property over the course of 3 months. 

I'll explain that the expense of pulling the permits is worth it to the end buyer because then the house will appraise for enough to be covered by their mortgage.

Thank you

I have come across an off market property that has a finished top level, and the bottom level is a converted finished living space without pulling permits. It used to be a bare concrete garage. Can it be grandfathered in? It was built in 2007. For the new buyer that is flipping this property, should they get permits and have it looked at by the tax assessor so that they confirm the additional square footage? The investors I've talked to want to rehab and flip the property without going through the bureaucracy. What are your thoughts?

Hello,

I have a couple off market properties in Oakland that I see that look like potential deals, however the finished square footage on the tax roll does not equal the current state of the property. The owners have made additions to the property and didn't get the additional work permitted when they did it. Now that they're ready to sell, what is the process for the next buyer to correct it so that the additional square footage is legal?

Thank you

Hello,

I am planning on buying a 4plex property in the Bay Area using the 3.5% FHA loan on Jan 30th 2020. When I look for cash flowing properties, however, none of them have enough rent income to cover the debt service and expenses using the Bigger Pockets cash flow formula that I have included in the link below.

3420 Carlson Blvd:

https://maxebrdi.paragonrels.com/publink/default.aspx?GUID=3710d426-464b-44a0-925a-dd3302c8787f&Report=Yes

Link to deal analysis calculator, both FHA and conventional financing:

https://drive.google.com/file/d/1-uWNXgtOPKqt0Vx7I...

Is it possible to find a 2-4 unit property in the Bay Area that will cover debt service and expenses? If so, please include examples.

Hello,

I am planning on buying a 4plex property in the Bay Area using the 3.5% FHA loan on Jan 30th 2020. When I look for cash flowing properties, however, none of them have enough rent income to cover the debt service and expenses using the Bigger Pockets cash flow formula that I have included in the link below.

3420 Carlson Blvd:

https://maxebrdi.paragonrels.com/publink/default.aspx?GUID=3710d426-464b-44a0-925a-dd3302c8787f&Report=Yes

Link to deal analysis calculator, both FHA and conventional financing:

https://drive.google.com/file/d/1-uWNXgtOPKqt0Vx7I...

Is it possible to find a 2-4 unit property in the Bay Area that will cover debt service and expenses? If so, please include examples.

If a buyer agent brought you the end buyer, they will want to be paid in return. 

Selling for sale by owner is typically what a home buyer will do because they expect to save on paying commission. In realty the seller does not save any money because the buyer is expecting a 6% discount because they know the seller doesn't have to pay commission. The seller is also stuck with the 1-2 months of legal paperwork after the accepted offer to take care of, which can be daunting if attempted on your own. 

Here is an article on the topic:

https://www.inman.com/2018/07/02/11-resasons-for-sale-by-owner-is-a-terrible-idea/

Very cool Brian! That is exactly what I am interested in doing! I'm curious what made you go after that deal, did the tenant's rent cover the mortgage and the monthly expenses?

Hello,

I have been looking at the recently sold 2-4 unit income properties in the Bay Area and it seems like the price is prohibitive to being able to house hack. My goal on January 30th 2020 is to be able to buy a four unit property in the Oakland area with an FHA loan so that I will be able to live in one of the units and have the monthly expenses and debt service covered by the rent from the other three units. From other investor's experience, is this possible?

@Tammy Ly

Concord and Walnut Creek do not have rent control and there are several multifamily properties available in the area. The cap rate gets better as you go farther from SF because prices are driven by appreciation in Oakland, however the farther you go out towards Stockton area, the higher the rent rates are compared to the price of the property. For he reason, you can find cash flow properties in Martinez, Concord, Walnut Creek and Vallejo that have a higher cap rate on average that what you would find in Oakland.