All Forum Posts by: Nicholas Leone

Hello everyone. I'm eyeing a property in Berkeley, CA for Multifamily use. The property is zoned "C-SA" for South Area Commercial. It appears that there is currently residential use on the property but I'm not sure if it is allowed. I don't want to buy a building only to find out that multifamily use is not allowed. Does anyone have any experience or better knowledge of Berkeley Land Use or the C-SA zoning? Looking for some insight on BP before a hire an attorney to research this. Thank you!

Is there anyone who is familiar with Berkeley CA zoning codes and land use? Looking at a deal with a C-SA zoning which is Southern Area Commercial. Not sure if anyone has experience with Multifamily housing with this zoning designation. If you do, can I please buy you coffee or give me a call?? Thank you!

Get more bids. Go to your Sewer Districts website for a list of qualified contracts accepted by your municipality. Also, ask your sewer district if it has a rebate program. I got a $2k grant/rebate. Had to replace 150 LF when I bought my Bay Area home. Seller had a $13k bid. I found a bid for $9k. Get more bids.

While I’m not a broker, I’d say that Marin will command a 3.25-3.75 cap. Far more important would be for you to research local politics. NIMBYs come out of the woodworks to fight Multifamily in Marin. If you are looking at doing the entitlement process, expect that to last a number of years, cost a lot of money, and have a low probability of success.

An architect and SE hold different licenses. Each can stamp simple plans.

I agree with $250-300/SF. You could probably find someone to do it for less but you’ll probably find yourself handling more of the schedule and logistics coordination between trades.

First Republic recently quoted me Prime - 0.25%. Rate was about 4.46%. Best I’ve seen recently in Bay Area. You may get lower by finding someone out of area but they’ll likely cap the loan at something like $100k which doesn’t go far in the Bay Area.

Might cost some $ but you can hire a surveyor to measure your lot. Small possibility but you may have the 33 SF and not know it. Also worth finding the assessors parcel map for your land and calculating lot size based on those dimensions. Otherwise, I’d keep pushing the sale of 33 SF from a neighbor followed by a lot line adjustment as others noted. Your neighbors may not be interested. You may need to sweeten the pot for them. You can also offer easements for use and fences obviously.

You won’t get $500k loan on $900k equity with most Bay Area regionals like First Republic or Mechanics. They won’t lend past 60% CLTV. It seems that others have some good ideas above. I’d follow those suggestions. Also, you probably know this, but if you are borrowing to invest, your Cash on Cash return needs to be higher than your HELOC rate plus whatever spread that you require. You may want to ask yourself what is more important: interest rate or a $500k loan.

Agreed. Do not give rent concessions. It is a bad precedent to set. Gift cards are more than sufficient. I applaud you for being a concerned landlord but don't go too far too quickly.

Just gave 2 for $30 each. One was for a Silicon Valley apartment that was just renovated. Resident worked for a tech firm and didn't have internet for a week. Their internet bill was $65/mth and the gift card was about half of that. The other was for a small amount of water that leaked into the unit below during a renovation.

Start with a gift card in the amount that works for you. If residents aren't happy, they will let you know. My $0.02 but I'd only give if a resident approaches you - not preemptively.

Also, control your contractor better. Find your city's noise ordinances and email a copy to your COntractor telling him to follow it. Best of luck.