Buying a duplex in North Richmond CA. Thoughts?

Question

Hi everyone,

I'm hoping someone with direct experience or knowledge of this area might be able to shed some light. I'm in contract to purchase a duplex in North Richmond, which is an unincorporated part of Contra Costa county. I'm buying as an investment and the reason I pursued this particular deal is because it's one of the only deals, if not the only deal, in the Bay Area where the numbers made sense in my target price range. I've been looking for a while now in other metros as well and I thought it would be advantageous to invest locally if I could rather than remotely. I'd also like to add that I grew up in the Bay Area and I live and work in San Francisco, but since I haven't spent a ton of time in the east bay, I'm not as intimately familiar with this community. Here's what I'm wondering. Firstly, I know Richmond, and in this case N. Richmond, has the reputation for being riddled with crime. The crime map on Trulia says the crime is low, but I'm almost sure this can't be accurate based on other sources I've found during my research. Some of these other sources, including news stories, other crime stats, etc., are a few years old or may not pertain specifically to this small area of N. Richmond but rather Richmond in general, so I'm struggling to find reliable information on just how dangerous (or not) this community is. Does anyone know just how high the crime rate is, or how I could reliably ascertain this info?

Secondly, the property itself is two 2/1's, with the property being on the smaller side at approx 1,370 sf, making each unit 685 sf. Per my research, 2/1's in Richmond rent for $1,600-1800. The agent of says confidently that each unit would rent for $1,800. When I ran my analysis, I used a conservative number of $1,650 to make sure the property could still cash flow as a rental. Do these rents seem realistic for the area considering its size?

Thirdly, how does the fact that it's an unincorporated area affect me as a property owner, if at all?

Any insight on these matters would be very much appreciated!

Doug Woodville · Answer

@Don Souza I'm right by the Annex. From what I've seen you're probably not going to get any "deals" from the MLS in the Annex. Although I could be wrong. Don, have you acquired any off market deals in the area? The condos that will be going up near central ave should have an impact on the area I bet.

Ori Skloot · Answer

I own property in North Richmond. You are right, because it's CCC the Richmond rent control law does not apply. Like you, I find it to be one of a few places where the numbers make sense in the Bay Area. Of course, you need to have a tolerance for the problems that come along with a rough area. But I see the area shifting and I believe slowly it will improve. As soon as those abandoned low income housing properties get demoed and rezoned the area should improve greatly. Like most places, North Richmond has a range of areas in terms of quality. It ranges from - scary, don't go at night, to - decent area with working class that are trying to get by. Ping me if you want my thoughts on the area you are buying, I am happy to help.

Don Souza · Answer

I prefer the Annex.

Jason Jay · Answer

N Richmond is all the above. More shootings and drugs than the others. I'm mainly talking about the iron triangle.

Jason Jay · Answer

I work in the area regularly and it's not the best neighborhood but you're not planning to live there so you should be fine. I helped a person that got shot there one day and now I get a court summons every month to testify but they keep pushing it back, has been 2 years now....

Michaela G. · Answer

Check if you can do a public records request on 911 calls for a couple surrounding addresses. I can do that in Georgia, not sure about California.

I would not see Point Richmond as comparison for Richmond. Very different vibe and very different market and very different residents. I used to live in Point Richmond.

Jana Cain · Answer

@Eduardo Zepeda Thanks for the additional info about your property. You bring up a great point about the fencing and bars on the windows. When I pretend to drive for dollars when I'm out and about (or even when looking on Redfin), I, too, tend to wonder if such measures are a necessity, or just remnants of a different era in the neighborhood. There's a new rental development going up not too far away in Point Richmond that could have a positive effect on your rents, as those new townhomes will be market rate (though market rate is technically still tbd, of course).

Good luck with the renovation! Please keep us posted.

Eduardo Zepeda · Answer

@Jana Cain thanks for your input! The info is helpful in knowing that it's at least not unrealistic in terms of the rents I'm looking at. Just for reference, the property is on the corner of 5th St and Silver. The units themselves are fairly decent. One is almost fully updated with a new kitchen, new flooring and paint throughout, and the bathroom has a new vanity and fixtures. The other one has an older kitchen in decent shape, new flooring and paint throughout. I personally am not a fan of the style of vinyl plank flooring they chose in both units but it's tolerable. It also does not have a backyard, but rather a fenced in front and side yard. I personally think the cyclone fence is quite ugly and would be one of the things I would want to remove if I want to improve the curb appeal, but the agent that seems to be familiar with the area advised against it as he says it's desired by renters in the area, if not for the reason alone that they may have a pet dog and it this would be their running around space. The perimeter fences are pretty ubiquitous in the neighborhood along with bars on windows, but I wonder how much of this is a legacy device rather than a current necessity. There's also no garage, but there are two carports. Again, I personally think they are useless and the area would be better purposed for something different since he majority of drivers seem to mainly street park in 2017, such as turning that into more yard or even expanding the units in the future, but the agent seems to think that the carports would be desired. I guess that's not something I would need to decide immediately, but it's something to keep in consideration.

@Ori Skloot I greatly appreciate your insight! I'll reach out to connect with you. Great knowing another owner in the same area :)

Jana Cain · Answer

Ah, I see. I had no idea that RPD doesn't cover that area. I wish I could be of more help in that regard.

As for the rents, you probably could get 1800 for a 2/1 in that area. I pay just under that for an updated 1/1 condo that is slightly larger (but in a different neighborhood). 1800 sounds like a steal, generally, in comparison, but I don't know the condition of the units or much about the neighborhood other than what I see when I opt to take the Parkway to get to/from 80.

Not sure if this was at all helpful, lol...

Buying a duplex in North Richmond CA. Thoughts?

Buying a duplex in North Richmond CA. Thoughts?

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