All Forum Posts by: Amit M.

Oh boy...lots of bogus info here...

@David S. that’s a rent registry to gather info, nothing to do with vacancy control, which was just voted down hard in CA by prop 21 failing

@Sid Naik apartment sales in SF are soft, but no way down 30%. Maybe 5-10% for those sellers wanting to get out now.  Others are listing, maybe negotiating a bit, but otherwise not selling their buildings, which is why the listings are being repeated

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On a separate note...
@Brian Garlington I think you’re overstating SF vs Oakland wrt oppressive rent control laws. Oakland has gotten pretty bad in its own right the past few years ;) Those Oakland moms commandeering that home (and basically forcing the investors to sell it at their cost to a housing non profit) is (unfortunately) a first, and a scary precedent. Yep, it’s a sad day when SF and Oakland are competing for the most draconian rent control rules.

@Greg S. I agree with you that prop 19 was an underhanded bait and switch scheme that most people did not understand. And yes state and especially some local gov’s are going off the deep end of stupid and ultimately crippling policies. Personal fave: SF insisting on buying and building “affordable housing” to the tune of $800k to $1 million per unit, for a few lower income (or homeless) people who literally win the lottery and get the unit at a huge subsidized price or rent. I mean, THAT makes sense!

As for future interest rate rise and inevitable inflation, I think short term that may push RE prices down. But longer term things will just get incredibly inflated, and property owners will make out like bandits. Imagine $50+ for a burrito in 10-15 years...and what homes and apartment values will be like in CA. You just have to hold on for the cycle to come to it’s natural conclusion. (stupid-gov-policies>broke-gov>high-inflation>crazy-real-estate-prices) 

But yeah, in the meantime it’s pretty annoying!

@Rick M. I’d say, sure no problem. As long as rent and terms are to be negotiated for the extension. (Basically they can only renew at the terms you want.) It’ll make them feel better/more secure plus you can’t loose that way!

You’re asking a question that has no quantifiable answer...

There is no answer, there is only belief

“so key will be to select tenants who you think will not be squatters”

Bingo!

He should have moved to Houston...

“I know a guy who has been waiting for the right moment to jump into the market since 1987.”

LOL- I know a few people like that too!

Too lazy to type, so check out my profile for my perspective on Bay Area investing

@Darius Ogloza feel free to talk more about your deals :)

depends

on

location

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3words

I second what both folks above wrote. Plus I’ll add my own personal observation on how much cap ex you actually end up spending: luck

Bottom line: hope for the best, prepare for the worst

Question: "How are the sale values of ADU's?"

Short answer: They suck...especially for SFH's

But keep in mind that adding an ADU to a 2-4+ unit building is a different animal. Namely, the appraisal should account for the added unit's direct value. You may need to have your county adjust their official record to include the ADU in their unit count, so a duplex is categorized as a 3 unit bldg, etc. Then the appraiser should be able to appraise it accordingly.

That's a big difference from the appraisal challenge with SFH+ADU everyone mentioned above.