All Forum Posts by: David Santos

Given the increase in raw material - Any input on how much it would cost for ground up construction in Oakland? 

Looking to do a lot split for a 9000 sqft parcel then build new house from the ground up.

@Ori Skloot Thanks for the input! Even with a cash-out Refi I'd be limited given the .75 CLTV requirement. I was hoping lenders would ease up 6 months after Covid, but it seems like there is no end in sight given the recent raises in cases. How much do you think prices for Multi-Family homes will dip in East Bay?

@Darius Ogloza I have not reached out to them. Thanks for recommendation, I'll schedule a consultation. Mainly looking for a HELOC now.

@Will Fraser Got it! Im leaning more towards saving and waiting. What markets would you recommend? I liked the outskirts of Austin as it's a place I can see myself living at some point in my life.

@Arlen Chou You are spot on! I appreciate the wise words and thoughtfulness in your response. I am so tempted to pursue opportunities OOS, especially now that I have more experience under my belt. But I guess I'll live like a monk to save reserves and be patient.

@Hayden H. I kind got lucky with my duplex as it's in North Oakland (5 min from Emeryville, Berkeley & Ashby Bart so well located). The street is kind of industrial, but very central to happening. Definitely second guessing selling now.  

@Joe Bauder Thanks for the affirmation on Option A. Will probably just wait it out for now then.

Hi BP Community,

I have actively followed many post and the advice on here is invaluable. Now, I am in a unique situation where I haven't been able to find answers online.

The situation:

I purchased a duplex to house-hack in Oakland, CA with an FHA Loan for $710,000 which is now my primary home. I renovated the property, raised rents in one unit and refinanced into a conventional loan at 3.5%. Now, SFH on my block are selling for $800K-$900K with less than a month on the market and realtors believe they can sell my home for $1M - $1.1M. This would leave me with $120K-$180K after taxes,closing cost etc. I also am wary on prices staying so high in the Bay Area. I feel as though the eviction moratorium is going to cause over-leveraged landlords to liquidate some of their RE (Please provide your thoughts on this).

I originally house-hacked because I wanted to jump into real estate investing, lower my housing cost (Net "mortgage" payment is $1,193 which is extremely low for the Bay Area), and have low-risk experience with renovations as it would be my own home. Now, I feel as though I am "stuck" on my real estate journey because there is no way for me to unlock the equity in my property. I tried cash-out refinance but lenders charged me 2pts for 25k (fannie mae limit is 75% LTV for duplex) and don't qualify for a HELOC given the stricter requirements by most lenders.

I am asking for the BP Community to provide insights as to what they would do in my situation. I feel as though I have 2 options right now:

A) Stay in the property and wait 2 years to build reserves to invest (Bay Area real estate appreciates ~4% to 5% per year). Currently have $15K in savings.

B) Sell my duplex and and use the cash to invest Out of State (I am thinking of Austin/Central Texas Area or ATL Area)

My financial goals are for my Real Estate income to be at least $10K a month by the time I am 40. Currently am 24, so I have a long way to go.

Let me know your thoughts on what you choose and why or any alternatives!

Thanks,

David

Hey Mary, 

It's crazy that we would reconnect on a BP Forum since our SMASH Stanford days. I recently purchased a duplex in North Oakland in 2018 and would be happy to share with you my strategy (BRRRR). I haven't quite gotten to the repeat step, but can certainly provide you my 2 cents on the buy, rehab, rent, and refinance.

DM me if you want a follow-up. Hope you're staying safe during these strange times

Hi Vincent! Great work on this project! I am interested in pursuing something similar in North Oakland. The potential warehouse that could be converted is at 963 61st Place, Oakland CA. Perhaps we can connect on this.