All Forum Posts by: Mark Vesu
Mark Vesu has started 17 posts and replied 50 times.
Post: Should I keep or sell my duplex?
- Posts 50
- Votes 7
Thanks, everyone, for taking the time to respond to my query—I really appreciate it.
Here’s my current thinking—please correct me if I’m wrong:
Unlike single-family homes, where emotions often influence buying decisions, duplexes are typically evaluated purely on ROI.
Property prices for duplexes likely won’t go that high because they need to make financial sense for a commercial buyer. Unless the buyer plans to live in one unit and rent out the other, the return on investment may not justify a higher purchase price.
Is my current-thinking right?
If I sell the duplex without 1031, I will hit with a 220k tax and the net will be around $1.2m (after everything) @6% return I will get around $75k/yr and after tax at 22% I will get around $58k/yr in cash.
Thanks in advance.
Post: Should I keep or sell my duplex?
- Posts 50
- Votes 7
Quote from @Jules Aton:
Agree the interest rate is high. If you decide to keep the property I would pay that off. As I near retirement I'm also scaling back on the hassles of RE. What does your financial plan say about asset allocation? That will guide you when deciding what to do with the funds if you sell the duplex. I'm carrying a low interest mortgage into retirement and will keep a fairly high percent, for someone my age, in total stock market index funds in an effort to have true passive income and likely a reasonable return that ideally will offset inflation.
Thanks Jules, I am thinking about the same. Between washer is not working, plumbing is leaking, it's bit much to handle, especially when the return is low.
Post: Should I keep or sell my duplex?
- Posts 50
- Votes 7
I would like to get your expert opinion as to whether I should keep or sell my duplex
The sale price, if I sell = $1.75m
Mortgage = $200k
Years left on mortgage = 7 years
Mortgage Interest: 7.25% (resets every year)
Rent - Expenses and Deductions = $20K/yr
Additional info: I am very close to retirement and the thinking process is to sell and payoff the mortgage on the primary residence.
Appreciate your feedback.
Thanks.
Appreciate any recommendations for a good real estate friendly lawyer. Thanks
Post: Duplex to Condo conversion
- Posts 50
- Votes 7
I was told that I cannot subdivide R2 zoned property under SB 9.
Can someone please recommend a good lawyer to review the TIC agreement? Also, how much can I expect to pay a lawyer to review the document? Appreciate your help.
Post: SF Bay Area Condo Conversion?
- Posts 50
- Votes 7
@Matthew Bailey I just saw your post. Did you go ahead with converting to condo? If yes or no, can you please share your research? Thanks
Post: Spent 250K to add an ADU in South Bay or buy a condo in East Bay in 2024
- Posts 50
- Votes 7
What is your strategy? If you want to buy, build and hold? Then, look at the ROI numbers.
If you want to buy, build, and sell in the next 3,5, years, don't expect your house to appreciate like a SFH. The new buyer may not care about the ADU.
Post: Duplex to Condo conversion
- Posts 50
- Votes 7
All, I have a duplex and thinking of converting it into two condos. Has anyone done that in San Jose? I don’t think SB 9 will work as my property is zoned R2. What other options do I have to sell it separately? Appreciate your help.
Post: Spent 250K to add an ADU in South Bay or buy a condo in East Bay in 2024
- Posts 50
- Votes 7
@Wilson Lau does $400/sq ft includes everything - including foundation?
Also, one thing I've noticed is that once you have an ADU, your buyer pool will shrink? Why? Not every SFH buyer wants to have and deal with a tenant and in some cases SFH price will be more or same as a SFH with ADU. I have a great duplex in $2.4M SFH neighborhood but I can only sell my duplex for $1.8m because only an investor will buy it. The investor on the other hand will look at the ROI, etc; whereas, a SFH buyer wants a nice place to live and they don't care about ROI.