Buying a duplex in West Oakland

[Jocelyn Ahuja]

Hi BP! I'm new to BP and just started my first deal. Had an offer accepted for a duplex in West Oakland, CA. Home was listed for $850k and I went in above asking at $875k. (A lot I know, but it's Bay Area pricing) Each unit rents for $3200 a month & 6 blocks away from the Bart station. So here's my plan, my husband and I will house hack this property but I have a few concerns. 1)The second unit has not been legalized, is this a big deal? I've started researching the process and it looks like it could cost a couple thousands to permit the space. Has anymore legalized a unit in Oakland, CA? 2) I've been living in Oakland for 3 years now, and have familiarized myself with the Lake Merritt area BUT don't know much about west Oakland ... any insight? It's very industrial and I see a lot of development, what's the culture like? Demographics? Any future projections for the area? 3) I will inherit tenants in one unit (seller says they're great), and will move in the vacant unit. Right now the home has one meter for electric/gas, any experience on splitting utilities? I want to have separate meters for each unit but I'm willing to wait until their up for a lease renewal in Feb 2018. I have about 10 other concerns but I'll keep my first post short. 🙂 Thanks for the feedback! Jocelyn

[Amit M.]

The cart is way before the horse here. You need to have answers to all those questions BEFORE getting into contract imo. The unit legalization issue is complicated, and you don't even know basic things like the neighborhood characteristics. So how do you even know if this is a good deal, or if you're overpaying? You've got A LOT more research to do before jumping to make offfers. 

Note to novices: don't do this.