All Forum Posts by: Vamshi Ananth

 My friend I am a standing/walking example. Live in the heart of Silicon Valley and rent a 2 bed apt in one of the high end apt communities. I got into a 1 year lease with a 8 week rent rebate + $500 lease sign no bonus, this was a few months ago. So there you go!

Link to the whole article from Zumper

The rents seem to also have topped out here in the West Coast and especially our SF Bay Area market. Zumper has an interesting report I thought would be of interest to fellow BPers.

San Francisco and San Jose list in the top 5 rental markets in US, SF has a drop of -0.6% for 1 bed and a paltry  0.2% increase to 2 bed. San Jose on the other hand saw a -3.6% and -3.5% decline to its 1 and 2 bed median rents. These numbers does not factor in the 1-2 months rent rebates that are prevalent in the bay area market..... which if factored in the numbers might look a bit more ugly. 

I've had friends working for companies like Cisco and Intel, Ericson getting laid off in the recent months..... guess the bubble is starting to prick.

https://www.zumper.com/blog/2016/09/zumper-national-rent-report-september-2016/

 Well said @Minh Le , I agree there are quite a few savvy investors here in the Bay Area scouting the market for deals and gaining access to best deals needs network and expertise (which are gained over time... unless you get lucky). I am sure you spent your time learning the market before taking plunge but I should also add that any one who was smart enough to get into the market back at the depths of recession had a great ride up. But when the "Tide goes down you find who's swimming naked ...Quote Warren Buffet". I am sure there are quite a bunch who fall into this category and add to that the Blackstones (Investment banks) of the world who hold large swaths of rental real estate on their books. When the Great Un-wind happens.... which it eventually will, I am sure the there would be enough inventory and market would be big enough for savvy observant (first time) investors who are looking to break into the market to have their piece.

You are having your money work hard for you, way to go! Congratulations!.

I've rented many places before and every place asked some deposit along with the signed lease agreement. You can ask for a check from your prospective tenant when they are signing the lease agreement.

Well explained. Yes Cap Ex (Capital Expenditure) and one time expenses should not be included in your NOI. Op Ex (Operational Expenditure) Taxes, Insurance, Utilities etc... should be part of your NOI calculation.

 I think the terms hotel and short term rentals only apply if you rent out your place on a daily or a weekly basis. If the rental period exceeds over a month usually 1month + I guess its considered no different than a regular rental. 

Thanks everyone for your inputs.. really appreciate your insights. It gives me some perspective before pulling the trigger on any potential deal, especially that I am just starting out.