All Forum Posts by: Brian Garlington

Here in the Bay Area it is slowing perceptively when it comes to the SFR's. It's hardly noticeable. DOM is starting to go up just a little bit for those.

Small Multifamily.......... those days on market are tightening because investors want to secure a way to lock in investments and now that it is a little easier to encourage tenants to move out there are options available, but you have to move fast.

Condos around here though are popping up a little more....but their days on market are the longest....but not by much.

This is where you don't go with "your CPA".........you hire a tax advisor/CPA that specializes in this sort of thing. I learned the hard way a long time ago that business is business and not to always go with the "family friend"....or the "colleague" you've known for a long time so that is who I will give the business to.

That mistake cost me a lot of money. Hopefully you can salvage this my man. Fingers crossed.

By the way...were you 59 or were you 59 1/2 when you took the money out? Apparently tat can make at least a little bit of a difference. Yes that is a serious question.

Hmmm............Brandon Turner talks all the time about how he is house hacking in Hawaii....yet you couldn't find Househacking in Hawaii as a topic here on BP?

OK :-)

Yes house hacking has been proven to be an incredibel strategy to use....especially in expensive markets like Hawaii where you are.....and the San Francisco Bay Area.

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $320,000
Sale price: $610,000

Used a VA Loan and bought this duplex in Oakland. Once it "doubled" in value I sold it, put the money in a 1031 Exchange...and am using the funds to buy into syndications.

 You'll need to be more specific then that..............what kind of land? Lots of differences throughout Washington, Oregon and California

 This one of the (many) reasons I love renting to tenants with a Section 8 Voucher. In a rent controlled area like the Bay Area I was able to raise rents out here by anywhere from 4 to 8 % annually, even during the pandemic. If a person's income is subsidized by the governmen then they are not subject to the restrictions of rent control. I could have tried to get the rents higher all at once but that would be stupid. Raise it 6% per year and keep it pushing. Has minimal impact on the tenant as well.

Rent out the main house to properly screened Section 8 or Abode tenants that you screen yourself.

No smoking of any kind

They pay for a $50.00 background check 

No pets unless it is a service animal. If it is then it can’t be more than 35 Lbs fully grown and no dangerous breed animal even if it is a service animal (my insurance won’t allow dangerous breed animals).

No evictions , ever.

No felonies, ever.

I have had outstanding results with this method here in the East Bay and in Cleveland with this method and I still have more candidates than I know what to do with, even with that criteria.

Do what I do and set the criteria as above

 That varies depending on the type of dwelling, how much detail you need and (no joke) the "mood" of the contractor. Of course the first thing that the good ones will ask is if you are pre-approved with a lender. People seem to always say "Yes"...then when asked "By what bank and for how much?".....sometimes they stumble over their answer so be prepared for that...........the answer to that question will certainly help determine how serious you are about buying now and what they may "charge you".

You will need to PAY the contractor for going out there to do an estimate. The good contractors that I work with cover primarily Oakland, Pittsburg, Antioch, Hercules, Richmond, Berkeley and Vallejo. All 6 of them have told me they refuse to go onsite to give an estimate based on the fact that someone "might" buy a place if they are not getting paid. 

Pro Tip. If you do find a contractor...make sure t is convenient for the contractor, not you. Asking a contractor to come out at noon on a Saturday for this is a flat no go. You will need to meet them EARLY in the morning when the sun is just coming up before you go to work so as not to interfere with the project(s) that they are already working on and getting paid for.