All Forum Posts by: Ana Marie B.

@Jon Schwartz - Didn’t read through the whole thread, but you had a question about any articles showing the relationship between prop 13 and prop 15. A simple google search should provide some insight. I was researching the list of propositions and think the below website may have described the relationship: 

https://ballotpedia.org/California_Proposition_15,_Tax_on_Commercial_and_Industrial_Properties_for_Education_and_Local_Government_Funding_Initiative_(2020)

@Christopher Smith - I’m definitely voting NO on props 15 and 21. 

It is odd... what business does the CDC have in LL/tenant matters? I would be concerned. 

@Account Closed - If your home appreciates in value, you would still need to research what the fair market rents are in your area. 

However, other variables come into play as well. For instance, if one of the reasons your property appreciated is due to renovations, then you can compare your home to others in the area and adjust your rent and list accordingly, highlighting what sets your home apart.

An example would be if you looked on Craigslist and the other rentals in the area appear old and dumpy, but your home has modern bathrooms and kitchen with new appliances. 

@Joe Villeneuve - Correct. I didn’t say  rent prices and appreciation *always* increase at identical levels. Depends on your area and other factors. That’s why research is important.

@Daniel Wang - Hold for positive cash flow worked for me.

For instance, you can live in the home for a couple of years, do some renovations if needed to increase its value, then move out and rent the property.  Not a fast strategy, but in the expensive Bay Area, it works.

During the years I lived in this home, my husband and I simultaneously invested OOS in Seattle where he traveled for business. FYI - The cash flow from our Bay Area rental trumps our OOS investments.

@Account Closed - Also, usually appreciation goes hand in hand with rent prices. As homes in an area appreciate in value, rent prices also tend to increase. Therefore more cashflow in your pocket (if you research the market and increase rents accordingly).

Take for instance a 3/1 single family house I bought in 2010 for $460k in the SF Bay Area. Today, the estimated value is between $900k - $1M. I rent this house for $3,600/mo. Certainly rents weren’t this high in 2010. I cashflow $1600/month just on this one house.

@Jack Hou - COVID-19 will not last forever. I wouldn’t sell a property in Sunnyvale at a loss. It’s like selling stocks at a loss. You’ll eventually regret it when you see prices rebound and climb. Unless of course you anticipate any issues with your W-2 job in the near future? 

I view houses in the SF Bay Area as long term holds. 

@Dustin Peters - Hi there, my parents went through the exact same situation. Their workaround was to have me co-sign, and then I signed a quit claim a year or two later. The bank was Wells Fargo and their interest rate went from 5% to 3.75%.

To be honest, they wanted to keep me on title, but it became a pain when purchasing/refinancing my own properties because of the amount of questions the loan underwriter would ask my mortgage broker and me (ie. please provide 12 months of parents bank statements showing you don’t contribute to mortgage payments, etc.)

Good luck!

I find it funny that people who don’t live or invest in CA start these outrageous threads about the “impending doom” of SF Bay Area RE, only to find out they actually wish to purchase RE in the state (but usually can’t in their desired cities due to limited funds).

It’s almost like they hope their thread will somehow help spur or add to an exodus, thereby allowing them a way in. 

Same goes for NY and other high priced cities...