Another Bay Area appreciation data point!

[Arlen Chou]

So I posted a little while ago about a refi of my home, and the appreciation that I have see over 13 years of ownership.

Here is another data point for local Bay Area investors to consider before deciding to go out of State: 

I purchased a 4 plex in Mountain View in 2013 for $840k. Received my appraisal today for my cash out refi... $1.5m! This is not an A market residential area. It is more of a solid B area for young tech people.

This is not meant to be a knock on those who believe in "cash flow" and feel appreciation is just the frosting. It is just a specific data point for those people thinking about investing thousands of miles away believing that money cannot be made in post crash "hot" markets.  

I fully believe that there is something to be said about quality vs quantity... As I have said in my previous post, this strategy might not be for everybody.  It is just a glimpse into what has worked for me in my local market.

-Arlen

[Arlen Chou]

@Steve B. what I am pointing out is that imaging money in the Bay Area can be done and that I don't believe going out of State has to be the only option.

@Manch Hon This is the property that I rehabbed in MV on my own. When I purchased the property rents were around $900/month.  Theses are all 1/1 units. I have been increasing rents consistently via turn over or 60 day notices. Most recent rent increase for a hold over tenant has taken them to $1800/month. A new tenant that moved in last month is paying $1850.

@Roxie Tong I look at REI with a long term horizon. Therefore, I go in with high up front dollars for two reasons: it knocks out of the race people who have to finance and it also artificially makes me cash flow positive. Once renovations and rent increases are done, I begin refinancing the property to pull my cash out. I match my refi to what I believe I can rent, so I always stay technically cash flow positive. My initial money came from a combination of savings, private money and the biggest chunk came from appreciation pulled out of my primary home.