Victorian downtown

[Josh Little]

Hoping for some feedback - in the counter offer stage of this deal.

I'm looking at a $470,000 purchase price for a beautiful home built in 1920 downtown of a growing town in the north bay area of San Francisco (1 block from library, popular wine tasting and shops). The home is in great condition, no yard maintanance, small lot, NO parking on-site which is frustrating but there is a parking garage 2 units down that charges $65 per month. I own a small property management business and think I can rent it out for $2,200 per month no problem. The roof needs to be replaced in the next 5 years. I will also be representing myself in the deal because I am a licensed broker.

I'm usually a cash-flow investor and dont like to bank on appreciation, I see this as a break even cash-flow deal for the first year or two. The reason I want to get into this deal is that a) I think rents will increase over time and b) It is a unique property as far as location and its Victorian style construction compared to the rapid urban development the area is experiencing which could lead to significant appreciation in the next 5 years. As Josh Dorkin mentioned in podcast 100, he likes to buy in the "path of growth" and this looks like a great place to buy in a growing market.

[Josh Little]

Martin Scherer was right on the money. Great point about the parking. I thought tenants might be interested in paying for parking in the structure nearby but it's not like SF where I used to live... I just got the home inspection report- the roof is thrashed and there is significant moisture damage throughout the house. Not going to move ahead with this one.

I recently decided to pay for the local MLS access so hoping to find a better deal somewhere between Cloverdale and Petaluma. If anyone is experienced and looking to partner on a value add or ground up project in sonoma county I would be interested in discussing ideas. Thanks for the feedback guys!