Newbie in Fremont, CA Interested in Small Multi-Family - With a H

Newbie in Fremont, CA Interested in Small Multi-Family - With a H

Spokane, WA · Member since 2016 · 103 posts · 76 votes

Hello everybody. Signed up some weeks back, but didn't get to the introduction post yet. Until now, of course (otherwise how would you be reading this? Your brain, I have warped it...)

Who I Am
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My name's Chris. For the past 11 years I've lived in the San Francisco Bay Area (Fremont at the moment). I do not see myself still living here in 5 years (maybe even 3).

I work as a content professional here. It's enjoyable work (most of the time), but living where I do makes it hard to save. I have done so, but I'm well aware that my salary will not make for a cozy retirement. I will have to get another income stream going...or at least secure the largest aspect of retirement comfort early on. Which is, of course, housing.

Which brought me here.

Real Estate Background
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In terms of background in real estate, I'm a serial renter. Rented all my life. In fact I've had so much experience renting that I'm considering a blog here on BiggerPockets about my experiences. (I'd call it "Living With Humans." Thoughts?)

Until recently, I never considered buying in the Bay Area. It's a ridiculous notion - the house prices here are obscene. Please see 'Goals' below for more on this point.

My family does own some land up in the far north of California. Undeveloped, a short distance from a TINY town, but a long ways out from larger ones. It's equidistant from Eureka and Redding, for those North Staters on BP.

Right now the land is split between my aunts and Mom. I'd like at least a portion of it to build a getaway cabin.

That's about my level of real estate experience.

Goals
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Okay, here's the part where I explain why I'm here. Short-short version: I'm curious about buying a small multi-family to house hack.

But there's a hitch. As I said, I'm in the SF Bay Area. Arguably the most ridiculously-overpriced real estate market in the U.S. I don't want to buy here. There's no way I could afford it anyway. (I do have savings, but nowhere near enough for even a SFH down payment here!)

I'd like to buy a triplex or quad in another area. Someplace where I could move in the near future, use one of the units, and rent the others to cover the mortgage. Standard house-hack. Making extra money is always good, but I'm primarily interested in balancing the mortgage and long-term appreciation.

I've already picked up Larry Loftis' book, "Investing in Duplexes, Triplexes and Quads." Good reading so far.

What areas am I targeting? Haven't decided yet (part of the reason I'm here). I'm interested in areas with actual seasons, cool summers, & reasonable standards of living. For one example, my girlfriend and I both like the Portland area.

Happy to chat, while I lurk amongst the threads and absorb knowledge like an oceanic sponge. Thanks!
-Chris

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  • Michael S.Pro Member
    Biggerpockets Support · Las Pinas, Metro Manila · Member since 2015 · 7k+ posts · 1k+ votes
    9y

    Welcome to Biggerpockets Chris. Great to have you in the community. 

    BiggerPockets
  • Spokane, WA · Member since 2016 · 103 posts · 76 votes
    9y

    Thanks Michael.  The Philippines huh?  The power of the Web...

  • Reno, NV · Member since 2017 · 2 posts · 0 votes
    9y

    who manages your TX properties & what has your experience been like?how long have you been doing this?

    i just joined BP...still need to get more familiar...i have a 4br 1.5 townhouse in san jose that i plan to sell..rtenant moved out..but the prices in san jose are outrageous..& you are right...rent to price ratio doesn't make sense.Listing agent advised listing it for $620K, staging it, etc...Property is free & clear, but what i could net is still not enough to do a good 1031 exchange. I live out of state but have a good Property Mgt co in San Jose.Reconsidering my options . Need help.

    I welcome advice from you  & other BP members. Thanks.

  • Reno, NV · Member since 2017 · 2 posts · 0 votes
    9y

    who manages your TX properties & what has your experience been like?how long have you been doing this?

    i just joined BP...still need to get more familiar...i have a 4br 1.5 townhouse in san jose that i plan to sell..rtenant moved out..but the prices in san jose are outrageous..& you are right...rent to price ratio doesn't make sense.Listing agent advised listing it for $620K, staging it, etc...Property is free & clear, but what i could net is still not enough to do a good 1031 exchange. I live out of state but have a good Property Mgt co in San Jose.Reconsidering my options . Need help.

    I welcome advice from you  & other BP members. Thanks.

  • Spokane, WA · Member since 2016 · 103 posts · 76 votes
    9y

    Thanks @Account Closed.  I harbor no delusions that I could afford a good rental around here.  Even my basic understanding of the numbers allows me to hear them scream, "nooooo!"

    I'll check out the Meetup page as soon as I can.

  • Chad HalePro Member
    Property Manager / Investor · San Jose, CA · Member since 2013 · 780 posts · 301 votes
    9y

    Welcome to BP Chris.  Investing in the bay area is not for the weak of heart.  It is indeed pricey and tough to get in.  However, once in the rewards are nice.  You just have to work hard at finding the right deal and may need to be patient in finding that deal.  

    Aster,  selling or rerenting your townhouse depends on your long term strategy and how/what you would reinvest the profits into.  If you could 1031 into a multi-family unit, you'd likely get better returns.

    The market has slowed down, even plateaued in some areas.  So this spring may be a good time to sell if that is the route you choose to go. 

    Lots of interesting articles/blogs on BP to help you decide which strategy might be best for you.

    Best of success

    Chad

  • Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    9y

    @Chris Williams

    You have come to the right place to connect with the wide array of real estate professionals and investors. Make sure to view the Bigger Pockets book store: https://www.biggerpockets.com/store

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