All Forum Posts by: Osazee Edebiri

Quote from @Carlos Lez:

Quote from @Nathan Gesner:

If he's somehow stalking her or harassing her, she should report it to the police. You provide a shelter, not a counseling office or law enforcement center.

In the future, you should seriously consider renting to only male or only female. Putting strangers in close proximity for long periods of time is a recipe for problems.

 Thanks Nathan! Your responses are always precise and spot on.

 Be careful with renting to only male or only female, it's not really something you can advertise.

Quote from @Bruce Woodruff:

Where in California? San Diego or the Bay Area? Hard to beat that appreciation.

Rental properties or primary homes? If rentals you always have the ugly Blue State thing waiting to popup.

Too many variables. Narrow it down a bit.

But generally if you stay coastal in Cali, it's tough to beat. 

Unless this whole mass exodus thang pushes prices down.....

 I mean it's really wherever, for those of us that know California we know it's vast. You said costal, but what about a property in Tahoe. I think there are still many people that don't realize we have snow in California lol. My goal is not really about specific cities, it's about hearing other people give legitimate reasons they feel another state will perform better. They can pick any city they want. 

From your response, I feel it's say to say you feel California will perform better in 15 years, even though you're in Arizona?

@Account Closed mentioned the most important thing which is you are in an area where you can't evict right now. So it doesn't really matter what you decide to do, but you have to put in some work to due your due diligence and make sure if you decide to allow the cousins to live there you background check them and have them sign a short-term lease for when the the current resident comes. 

I would even go a step further and charge them a bit over what the current tenant is paying now, so that because your new rent, just in case they decide to stay, tell the current tenant it is connivence for holding the unit for them, which it is. Meet the cousins before they move in or do a zoom so you can get a feel of them. When you check their background you want them fit the criteria of people who care if their credit gets messed up, etc. If they don't pay your current recourse is small claims court, so you want to make sure they are people whom if you had to take them to small claims court would actually be affect if a lien was placed on them.

The good thing you have going for you is the Tennant communicated this suggest to you rather than just doing on their own, so that to me is a pretty good indicator you have someone who is not trying to get over on you, they just want to keep their low rent. This doesn't mean the cousins won't try to get over on you. So communicate. You can even be creative and ask them for am additional holding deposit that they get back when they return. This gives you a little extra, just in case they don't pay.

Hope that helps.

I think the constant discussion of California vs anywhere else is intriguing. So I pose a question. Hypothetical, if a person had a  2 million dollars to invest, they purchased property with 1 million in California and 1 million in any other state, which would perform better after 15 years and why? 

This assumes anything and everything will happen, which is the real life case anyway.  I am not automatically assuming California will perform better just because I live here in the Bay Area. I think someone may have interesting incite to why another state could out perform California property in the next 15 years.

Quote from @Nayeli Meza:

Thanks Darius, Vallejo, zipcode 94591

 Sent you a message.

Quote from @Li Ou:

Quote from @Osazee Edebiri:

Hey Li,

Welcome to RE Investing.

It might take awhile to get to $3000k a month cash flow.You could do a house hack with a high down payment to stay in California, if structured correctly that could get you 3k a month. One thing to consider if you are planning to real estate invest longterm quitting your W-2 immediately after getting your first property will make it more challenging to get the next one. 

Hi ,Osazee

 
Thanks for the input. What percentage do you consider as high down payment? Could you give me an example? Let's say if I wanna purchase a four-plex in Mountain View that's worth's $2 million, how much down should I put? I've been keeping an eye on the MLS, and found that if I 30% down on a four-plex, live in one of the units and rent the other units out, it barely cash flows.

 Your Welcome. 

The downpayment will vary depending on how your financing is. I inboxed you.

Hey Li,

Welcome to RE Investing.

It might take awhile to get to $3000k a month cash flow.You could do a house hack with a high down payment to stay in California, if structured correctly that could get you 3k a month. One thing to consider if you are planning to real estate invest longterm quitting your W-2 immediately after getting your first property will make it more challenging to get the next one. 

Quote from @Kit Elliott:

Hello BP community,

What strategies are people using when investing in California? It seems that cash flow is not as favored by investors over here as other strategies like appreciation or flipping. I think any strategy is doable, but which is best (particularly for luxury markets like in the Bay Area)?

- Kit

I would say the top two in California, is Househacking and Appreciation plays. 

In long term real estate game, California appreciation wins. 

If you purchase a property for appreciation but don’t househacking people are leaning more to STR’s depending on what market the property is in. STR’s are favorable because they can generate more income than an LTR, however they don’t work in every market.

Househacking, works in every market.

Quote from @Nicholas L.:

@David Song

I'm seeing that too... but only at those high price points.  And I think a lot of us aren't looking for investment properties in the $700K-$1.2M range!  I know David Greene is busy turning $2M houses in Oakland into $3M houses in Oakland, but I'm looking for bread and butter 3/1 rentals, and they're staying stubbornly high - sellers are holding out for 2021 situations even though there is slightly less demand at the moment.

@James Hamling

Agree with your post about new household formations.  It seems to me that even though US population growth is slowing slightly compared to previous decades, there is still strong demand in desirable areas, and a major shortage of affordable housing.

@Jay Hinrichs

To get back to one of your previous posts about housing starts - Bloomberg just reported this:

"The government’s report showed single-family housing starts decreased 10.1% to an annualized 916,000 rate, the slowest since June 2020. Permits for one-family dwellings dropped 4.3% to a two-year low. Meanwhile, construction of multifamily dwellings fell to 530,000 in July."

If this market "cooling" causes builders to slow, isn't that just going to exacerbate the shortage, especially at the price points some of us are after?!

David is doing the East Bay, but not Oakland, just wanted to clear it since those markets are highly different strategy.

Quote from @Neil Ginty:

Hi BP Community,

As part of mine and my wife's investment strategy, I gave up my W2 safety net to launch my own architectural firm. I want to provide a resources/FAQs section on my website for what we do and am hoping the BP community can help by firing some questions at me!? 
A few examples: I've been asked a few times already if we do Building Permitting! I thought it was an obvious yes, but maybe its just obvious to me!? Some other starters: Can we do structural design? Yes, if its straightforward but less so if we need to do calcs for the City. Can we do site design? Layouts yes, but for details you will need a Civil Engineer. 

Please, ask me anything! It will be a big help... I also want to do the same for ADUs, so throw those in as well

@Osazee Edebiri, you got any??

Nice,

I would ask, what are common scenarios people believe the don’t need an architect but should have one?