All Forum Posts by: DG A.

 Dude,  not much in the country is going to appreciate like Oakland over the next decade. 

Keep your properties here, take a HELOC out against the equity and put that equity to work earning cash flow where ever you want.

The oakland properties should break even on a cash flow basis while appreciating. Then the equity can go to work for you anywhere. 

If you owner occupy a property 3 units or smaller in Oakland, and the rents are below market, that investment will win every time (assuming a few hundred dollars bmr). The reason being, you can adjust the rents to market rate after you (the owner) have lived in the property for 2 years. 

I'm looking for a way to grow the cash that I'm saving, as I'm saving it up for down payments on future property.  

Is anyone one else doing anything like this? I live in the SF Bay Area where real estate is really expensive. 

Is there anyone else in expensive markets like Oakland, San Jose, San Francisco, Manhattan / NYC, San Diego, or Los Angeles that is using the stock market to grow their cash as they stock pile it to deploy on future real estate purchases?

I'm curious what others think of this idea. And interested to know how it's been for anyone that's actually done it.  

Also, I'm attaching the 2 appraisals I have for the duplexes. If anyone has a before or after appraisal (or both) on a single family home........... and can post them, that'd be awesome!

Galindo Duplex: https://www.screencast.com/t/Ub9re0kU1m

Foothill Duplex: https://www.screencast.com/t/xHt12wBplOYf

Hy BP People, 

I'm working on estimating ARV for my first flip. And, I'm going back through J. Scott's book, and he outlines how to do this. I have 2 appraisals that were done on 2 different duplexes (one I bought, one I did not buy).

I noticed in both the appraisals the only adjustments applied were for:

• Site (Size of the lot)
• Condition
• Gross building area
• Total rooms? https://www.screencast.com/t/eQ5qyYdAuE09
• Garage/Parking
• Fireplaces
• Decks 

I'm having a lot of trouble understanding how appraisers make their adjustments for Gross Living Area / Gross Building Area. There doesn't seem to be a formula anywhere in there. I've been messing around in Excel trying to find a formula or mathematical adjustment to get close to the adjustments the appraisers made (each appraisal from a different appraiser) for Gross Building/Living Area Square Footage.

The whole point of all this is to get a pretty accurate ARV. I'm finding that my number can be off +/- $30,000 depending on how much of an adjustment I make for Goss Building/Living Area.

Here's the spreadsheet I put together: https://docs.google.com/spreadsheets/d/1wT5eKlr81W...

The biggest problem I'm having in the spreadsheet is my calculation for price per square foot of land/lot is way off compared to the appraiser. The same is true for price per square foot of living area. My numbers in both cases are much higher than the appraisers. That said it seems I get pretty close to the "reality" of the ARV in the end.

Questions:

How do appraisers go about making adjustments for Square feet of land/lot and Sq Ft of living area?

Is there a mathematical approach I should be taking that I don't know about?

I'm seeing the same things at the taco truck on international and 42nd at midnight! 

@Atish cool data!  Let's meet up n talk shop about oakland. 

@Nick thanks for posting the link on that retail center I was wondering what that was

@Calvin Kwan that's crazy! My lot in Fruitvale is just short of 7,500 feet. I think I need an additional 30 feet to meet the zoning requirements to add a unit to my duplex. That's a bummer man!

Thanks for clarifying Jay!

Hey Y'all, do you know if an ADU can be added to an existing duplex? I've got a duplex in Oakland that I owner occupy. Could I add an ADU to it?