4 unit multi family

[Noah Hoffman]

Ok I want to get some opinions on how bad this deal is. This is about a 1 hour drive to San Francisco- So rents are below market but that doesn't mean we can raise them anytime soon. --- If I moved into one of the two bedroom units- Including listed expenses it seems that it isn't cash flowing well. Any thoughts? Asking price is $550K Ideal for owner-users who can live in 1 unit and earn income from the other 3. Property has significant upside in rents - all rents have significant room for increases. Rents have been kept low because owner is long-distance manager. Attractive unit mix. No major maintenance or capital expenses required. Selling because wife retired 1.5 years ago, husband is going to retire in the summer. Live in El Sobrante and are selling the property to enjoy retired life. Community park is right across the street. Close to schools, shopping, shopping centers, and downtown areas. * Buyer agents will receive 2.5% commission Building built in 1966. 3,328 sq ft. Lot is 6,018 sq ft. (A) 3bed/1bath - $1100 (B) 1bed/1bath - $800 (C) 2bed/1bath - $900 - section 8 tenant. (D) 2bed/1bath - $850 Expenses: Maintenance - $2,000 Taxes - $5,000 Insurance - $1,125 Utilities - $5,415 (water, garbage) Tenants pay own PGE

[Wes Blackwell]

@Andy C.

Yes, Sacramento has strong job growth and the economy is much more diverse than the Silicon Valley. Here are some statistics and news articles that expand upon it:

• http://www.bizjournals.com/sacramento/news/2016/01/22/sacramento-job-growth-outperforms-state-totals.html
• http://www.capradio.org/articles/2016/11/18/government-leads-sacramentos-october-job-growth

Probably the most interesting aspect of the local job market is whether or not the tech industry will catch on here as the city's new leadership is hoping:

• http://www.kcra.com/article/new-tech-startup-to-bring-dozens-of-new-jobs-to-sacramento/6430255

If we can lure enough start-ups here by giving them free money to help their business and showing them that their employees will come here to stay and not just establish themselves and leave like they do in San Francisco, we'll really have something. 

Hopefully we can follow in the footsteps of places like Seattle, Denver and Austin.

Affordability + Tech Industry = Massive Growth!