All Forum Posts by: Andrew Eaton

what happens when locals can’t afford to live like locals?

Kinda sad when you think about it.  Great read.  Good perspective.

https://www.outsideonline.com/2198726/did-airbnb-kill-mountain-town

Wes,

Do you mind sharing your pre-screening questionnaire?

I think it is a great idea.

Andrew

Debbie - In my opinion, you do not have to worry about intimidation.  Intimidation is more along the lines of: "You can steal from me (not pay your rent) if you want, but I think you will change your mind when my "Collection team" of 400 pound Tongans pays you a visit.

Given that you have every right to do ALL those things, telling them is NOT intimidation.  You are reminding them of what you will be doing and of possible ramifications that come with a bad reputation that they have rightly earned. 

I recognize that the Guru is just trying to make a living like the rest of us, BUT...at some point they should recognize that the entire premise of the business is taking advantage of people. I am sad to say that while in college I worked for a company where chargebacks and upsells were the game. It took a while for me to realize this and when I did, I left.  I didn't want to be a part of such a business.

If you buy in the right areas of the bay area, when the cycle dips, the drop will seem like a pebble under a mack truck. For instance, similar to @Arlen Chou's Los Altos home, check out the article below on San Mateo County's rise and current lack of inventory.

"Average sales price in San Mateo County has climbed to $1.4 million in February 2015, up nearly $500,000 from that same month in 2012, according to SAMCAR."

36% in 3 years. Makes the next cycle dip a whole lot easier to digest. The reality is that the dips are smaller and the jumps larger than in most other places.

Anyone who bought in San Mateo County in 2012 for $900k, worth $1.4MM today, nearly $700k in equity, can go get a cheap 3% HELOC and as @David C. said, do some flips or HML.

http://www.smdailyjournal.com/articles/lnews/2015-...

It may be a personal residence, but it is appreciation and access to cheap capital, opening doors to future projects. No hassle, cheap HELOC $ makes future deals easier to get done.

aaaaaaah yes - one of the wonderful benefits of being a landlord in tenant friendly San Francisco.  I wouldn't wish it upon anyone, or consider it myself.

Finally got around to reading this article.

http://www.aei.org/publication/texas-great-america...

100% of net job growth in America over the last eight years is attributable to Texas alone.

@Jeff Pollack Thanks for organizing.  I am glad I came.  I had a great time, learned a few things, and loved the food.

Lots of money flying around in SF and contractors are BUSY, and smart enough to know they don't need to win but 1-in-10 deals they bid.  I live on the Peninsula, about 25 miles south of SF in a similarly expensive market.  Given that you said it was for a friend to live in himself and not an investment, I'd error on the high side, and I think $200/SF might be light, especially if the neighborhood merits $2-$2.5MM homes.

I did a similar budget last year for NEW construction (but down to the studs wouldn't have saved me much $) in my town and it was going to be a $2.0-$2.5MM exit.  My all-in budget after speaking to contractors and designers was as follows:

4BR 3BA - 3,000SF - $250/SF

Roughly categorizing as follows:

$100k - soft costs (permits, designer, plans, etc.)

$400k - contractor

$200k - finishes

$50k - landscape

$750k TOTAL

$/SF can be helpful, but additional info such as 3BR/2BA 2,000SF home and "will include kichen, 3 bathrooms, roof, etc."  or "needs only work in 2 of 3 bathrooms, etc."

@Vicki Gleitz "89-92%"?  Seems like a very tight range.