All Forum Posts by: Calvin Kwan

@J. Martin - Thank you so much for the insight and feedback.  I'm super inspired by the work you've done and hopefully can be in your shoes one day!

One more question, if you don't mind me asking.  For your STRs in Oakland, do you have a minimum number of days required?  I know on AirBnB, most will be a few days here and there, but corporate rentals will provide a longer rental period.  In cases of 30 days or more, do you provide an actual lease?

Again, thank you so much for your feedback!

@Brian Payne - Sorry to revive an old thread, but do you mind PM'ing me your agency for traveling nurses as well?  Much appreciated!!!

@David C. - Did you ever get your units in the Bay Area rented as Short Term Rentals?  Curious because I'm near some hospitals as well.  Thanks!

Thanks for the feedback! 

@Ori Skloot - I want to avoid mixing LTR and STR tenants if possible to avoid issues mentioned by J, but this thought has definitely crossed my mind.

@J. Martin - Glad to hear your feedback on #3.  Do you know what exactly would distinguish a 1 unit vs. 2 units?  Is it the number of kitchens, egresses, etc?  I'm assuming since I am providing access between the units (door), it will still be legally considered a single unit.  Also, for furnished corporate housing, do you recommend Airbnb or other Corporate Housing sites?

Again, thank you guys so much for the advice!

Hey Guys,

I'm house hacking a duplex in Oakland and would love to get ideas on how I can maximize returns on one of my units.

The unit is a 4bdr split level unit that has a similar floor plan on both floors.  The previous owner intended on creating 2 units out of this, but never got around to it.  The upstairs has the kitchen, but the downstairs has a footprint of where another kitchen should be.  The only renovation I would physically need to do is to add a front door, kitchen and a partition wall to create 2 separate 2 bdr units.  

In a perfect world, I would get this permitted into 2 units, but I called the city and the lot size will not allow for adding an additional unit.  I could rent this unit as a whole, but would get much higher returns if I was able to create 2 separate units out of this.

So I'm looking for options at this point.  Here's what I'm thinking is possible...

1)  Rent the unit as a whole and leave it alone.  In the area I am in, I could get between $3500-3800 for a 4bdr/2bth unit.  I'm close to Temescal and Bart, so it's pretty desirable area.  

2)  Break up this unit and created (2) 2bdr/1bth units, I could probably get $2400-2600 each.  This will obviously be unpermitted, so I'm pretty inclined not to do this.

3)  Create the illusion of 2 units by adding a separate front door, kitchen and a lockable door that separates the units.  Legally, this will just be 1 unit but with 2 entrances, 2 kitchens and a door separates the 2 spaces.  Rent both spaces out separately to corporate housing or Airbnb which will hopefully minimize any issues with long-term tenants and unpermited issues.

I'm curious if idea 3 can even work.  Would love feedback or any other ideas to help maximize this return.

Thanks!

Daniel Bornstein also leads EBRHA workshops on occasion.  I had a chance to attend and ask a few questions.  Great resource if you have the time.

@J. Martin - Would love to learn more about your furnished rental business!  Do you mind if I PM you with some questions?  My property is right next to the UCSF Children's Hospital in Oakland.  Wondering if there are any unique opportunities for traveling nurses there.

Thanks for your help and inspiration!!!

Congrats  J.martin! Sorry to ask, but what is a furnished rental business?  Are you renting to professsionals and companies instead of regular tenants?

If you plan to OMI, Oakland still has some good opportunities.  Once you move in, the building is decontrolled, so you will not be subject to Just Cause if the unit is 3 units or less.  

The original tenant is looking to return, so instead of adding the sublessee to the master lease, it might be cleaner to have a separate agreement.  I also want to make sure the master lease remains unchanged if possible.