Newbie from Oakland, CA

[Emme W.]

Hello everyone, I'm looking to buy a duplex or triplex in Oakland or thereabouts and am have joined the forum hoping to get personal recommendations for local agents. I'm a little shy with my info so I won't say much more for the time being. As I read and get involved more I may naturally have more questions and comments. I did start a post with more detail in the Oakland forum as well. Thank you!

[Account Closed]

@Adam London No such thing as average cap in Oakland. Lately I've been seeing 3-4% in Lake Merritt/Temescal, 5-6% in West Oakland, and 6-8% in East Oakland.

Good rule of thumb to calculate operating expenses on a small multifamily is between 35-40% of gross rents for expenses (not including mortgage payment). If the water is separately metered, then 35% is a good starting point, but it's always good to be conservative. I always underwrite my deals at 40% and then if the actuals are better, that's icing on the cake. However, some properties are at 50%, so be weary. 

Sadly, your deal above listed for $875K will probably sell for more than asking. There is just way too much cheap money flowing around right now and "investors" are chasing appreciation based on FOMO. 

There are plenty of deals in Oakland that offer a decent COCR. Lately I have been averaging 20-25% COCR. They are usually value add deals, but there are plenty. Be creative.