All Forum Posts by: Bob Johnson

Condos a complete wildcard - water and/or trash can be included in fees, or billed independently. Larger complexes are on the hook for trash, so be forewarned there...

Trash is covered by the city (which is actually really rare) and water as mentioned would be roughly $400 per cycle for multi unit, about $300 for SFH (commercial rates - 2 or more units - are outrageous) 

The National City property is a little tricky, dicey area, you might want to put some feelers out with commercial brokers to see if they have any clients looking for that sort of a property, cap rate could be anywhere from 2% (low risk) to 7% (pot farm) depending on who you get in there.
As for Old Town, you're probably looking at low single digits return (like $3k/mo rent on a million dollar investment) but those places are very old, your maintenance costs will be significant due to all the foot traffic going through them.
I assume you are a cash buyer on both? Even with 4-5% financing, you'll be upside down in a hurry on both...

I own a place in Orinda, it's been flat for a few years, but there's always a market for houses there. The public school system there (as well as Moraga & Lafayette) is comparable to most privates, crime is almost non-existant, but there is a underlying "keeping up with the Jones'" ethos, as well as crazy competition to get kids into top notch colleges which isn't for all families. Commute to Oakland shouldn't be too horrible with the 3rd bore now, just avoid the bridge at all costs!

If you HAVE to be in The City, I'd look at what's left of the blue collar neighborhoods in town - Portola, Excelsier, Hunters Point, Mission etc. I have a mixed use (retail downstairs/rent controlled apartment upstairs) that does pretty well once it's leased, but getting good tenants was a bear. Look for places you can add an ADU in back to, multi unit zoning that only has one unit, etc. You'll have to get creative as it's almost exclusively a spec growth situation, and don't expect cap rates over 4%.

To echo Dan, you should probably sell your share out to him. San Diego properties yield anywhere from 1-3%  right now, which won't cover a loan, you'll be underwater for a long, long time. I'm a net seller here, prices are rediculous, but then again, I did surf and wear shorts today, so there's a reason for the prices lol. If he needs office space, rent it - that's what I do...

As it turned out, the deal went sideways as the owner of the multiunit has been getting a little weird with the terms - he thinks he's still getting 2017 money for the place, and the price keeps rising as the hard money he used to buy is robbing him blind, he doesn't realize he's going to get crushed. 

That being said, I might send a message to the note holders and let them know I'm interested in the whole building once he stops paying them lol...

@Ryan Heywood - Up there it will all have to do with the city planning dept and the NIMBYism of your neighborhood.  Love the idea though!

@Amit M. - That's all excellent info, thank you!  

There are a couple extenuating circumstances too - I'm actually helping my partner out buying his first place, so there is the "doing him a solid"-angle, despite my rule of NO BUSINESS WITH FAMILY OR FRIENDS. Lol. 

Back to the unit though, it's separate from the main building, has it's own entrance off a pathway, actually WAS a "house" at one time (see:

https://sf.curbed.com/2015/2/24/9988502/rememberin...) before it was moved to this lot, has it's own dedicated yard, I have a reasonably priced contractor that I took care of in 2008 that makes sure I'm taken care of first when there's work, and my business partner will handle almost all the city paperwork. And it looks like I can raise the roof some, so installing a loft will add another 50+ feet of interior space.

In general though, I'm not buying anything in California, I'm actually trying to ready a couple of my places here in San Diego for sale, this was a one-time event, and in the end, the seller is dragging his feet not, it might not even happen lol...

Roughly speaking, about $150K, although it could take 6 months to get this consummated. I'm combing through ADU regs right now and seeing what is/isn't allowed, still interested at this price if I can't AirBNB it, as even allowing $500/sq' build cost, my total cost is about $250K. 

One concern I'm having is the band of homeless that's taken over the corner a couple feet away, I know they can be transient (my family has been in The City for almost 100 years), could be a deal breaker if Mayor Breed continues encouraging homelessness as previous mayors have done.

Originally posted by @Amit M.:

@Bob Johnson

So how much are you paying for the shed?