All Forum Posts by: Gilbert Dominguez

@Arlen 

Yeah that sounds like the average BP investor alright. Arlen I am a Bay Area Native , have lived in the Bay Area most of my life. I bought two empty lots in the Oakland Hills in 2004 for $79K and sold them around 2009 for around $624K total, absolutely no improvements whatsoever. I get you. I could have also spent another $800K building a house on each  and sold each for $1.5M

The average investor is not a builder and most would be dealing with and paying a GC, a terrible idea for those that have no experience in construction or rehabbing. 

I congratulate you on your accomplishments but that is just not your every day investor. You had years to build up in the area and know the market. Your every day investor from other areas of the county have no idea whatsoever about the San Francisco Bay Area market and wouldn't know where to start. Do you think the average new investor just getting started can put together $840K. Its just not going to happen. 

The point is the the Bay Area is ok for those that have always been here but it won't work for the average joe from other parts of the country unless they are very well financially well healed and very experienced that is just not most folks, period. 

ok I;ll bite @Arlen Chou,

How about giving us real examples of what can be done with some real live properties that are on the market today? Give us the break down of exactly how us average Joe types can do it. 

When newbies talk about properties in the $35K to $50K range I figure what the heck they can survive it if things should(will) go wrong. However when you are talking between $298K to $350K and only $50K in rehab costs I just cover my eyes. 

Get 5 more opinions and get cost estimates and quotes directly from contractor and know about finishes and more specific information about the comps. It would be nice if this deal should turn out to be real and true for you. However I suspect there is a rattle snack coiled up under that tempting welcome mat. 

Yeah don't be scared anyone can house hack in the San Francisco Bay Area. You can buy a cheap 3 or 4 unit building live in one and rent out the others. Entry point between $1.9M and $2.5M, You see anyone can do it! Come on what are you guys waiting for? hehehehehehehehe :)

Get in now and take advantage of this once in a life time opportunity. These bargain prices won't last long !!!

Conclusion Taxpayer is not required to collect New Jersey sales and use tax and the State Occupancy Fee and Municipal Occupancy Tax to charges for occupancies since Taxpayer is not operating as a hotel. ___________________________________________________________________________

The sales tax you are referring to applies only to hotel, motel type business or even bread and breakfast businesses. This sales tax does not apply where there is a landlord/tenant relationship such as renting a house or apartment where the tenant is considered a permanent resident. 

I do not know about how New Jersey handles it but as far as I know in California you pay taxes only on the net after expenses which include your mortgage payment and interest, insurance, maintenance etc. However that is taken as taxes on income not sales tax. 

Someone who rents you a lawn mower will pay a sales tax. 

People who have money 1%

People who owe money 99%

Egypt and Cleopatra, Deja Vu?

10 people in the Ocean but there is only one life boat and it can only hold 3 people. 

Where are real estate investors in all this? Trying to become part of the 1%? Maybe !!!

I think all real estate investors are working on building a giant Coliseum and charge everyone rent on the seats then when the entertainment is over everyone will go home to your properties where there again they will have to pay you rent. 

What are those crazy politicians doing, making it hard for me as a real estate investor, they are ruining it for me. 

Are you talking about doing work without a permit? I would not recommend that. What you might consider is prefab modular homes if they make sense for your location. 

Sounds good for those that have recently gotten into buy and holds but for landlords depending on rents to paid for their mortgages as well as cash flow will the average rents jump up to $4K/mo?

Well what you got quoted on was to tear down and replace drywall and $10,000.00 is a good ball park figure for that kind of work. its allot of work and then you have to add painting on top of that. Having blown in insulation should be much more cost effective for you.