All Forum Posts by: Michael Simpson

@Amit M. Most of the units that I lease are 1 BR and studios. About 10% are 2 BR. Nothing larger than that. I focus on Downtown, Tenderloin, Nob Hill, Hayes Valley, Haight, and the Mission. 

You are correct! Most of the tenants are well paid professionals. The zero deposit works more on the studios for people who are getting into SF and are not the 6 figure income types.

So the way the bond works is that since the tenant is not putting a deposit down, the owner is at risk for damages at the end of the lease. We buy the bond for 25% of the monthly rent. If the tenant trashes the place at the end of the lease, then the bond company will reimburse the landlord and the bond company will pursue the deposit money from the tenant.

Hope that helps!

@Amit M. - Hi - all of our building are older buildings that we have remodeled on the inside. We have dropped many rental prices in $100 increments. Some of the $3000 units are now $2700, so there's a 10% decrease already for some units but units that are $4000 have not decreased much more than $200. We have offered $0 deposits on certain units where we Buy the bond. I think rent will come back up now that they're dropping. People jump on good deals!

Thanks Jerome - Stockton is a little far to have boots on the ground. You see anything in the Hayward area?

Does anyone have any connections to owners of SRO (Single Room Occupancy) hotels? My investor has me looking for his next project. I'm looking to connect with owners of rundown, crime, drug ridden buildings with known problems. We have been able to do many deals like this over the past few years and help renovate the building after purchasing and even relocating trouble causing tenants. We are looking in Oakland, SF, San Leandro, Hayward, and surrounding areas. 20,000 sq ft +. Any leads would be helpful! 

I'm a leasing agent for apartments in San Francisco. We've lowered our prices on many units in many neighborhoods this month because of the slowdown. I have been renting to many people from out of country and out of state who are working in Mountain View (google) or other tech and CHOOSE to commute from SF. Rents will continue to come down if people have the data and as long as there is a lot of vacancies

Hi Adam I live in Livermore and know a handyman. I was the resident manager at the complex I lived at and have worked with him. He's a painter by trade and does good work.

John Arendsen Do you know any owners of MH parks in the north county area? DM me please

I don't think you'll get to the 2% rule in the Bay Area. I have a friend who looks at it differently. When looking at places to buy, see if you can create more rooms or apartments. There are always People who want the cheapest available. If you see a commercial building with a 2 br apt above renting for $2k, see if you can create 3 studios and rent it for $1200 each.

Simon - my advice to get someone out quickly is to give them cash for keys and also find them other housing. I did this for my friend who is an investor. He bought a run down single room occupancy building. I found housing for 12 (separate) tenants. People are happier to move if they have some options that work for them and money. There's lot of places that have cheap rent in oakland but you won't find it on Craigslist. I've done placement before getting into real estate and all the room and board homes aren't advertised.