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All Forum Posts by: Bunmi Ajose

Bunmi Ajose has started 1 posts and replied 4 times.

Post: what what you do? First purchase high interest rate East Bay, CA

Bunmi AjosePosted
  • New to Real Estate
  • Bay Area, CA
  • Posts 4
  • Votes 0

K.T. -- very good point. Ive tried to follow-up with the city regarding this but I haven't gotten very far yet. Certainly Im willing to do the work to get it permitted. The neighborhood does have similar units like this, but for all I know they could be un-permitted too. 
Carlos - good points. I really doubt an economic collapse like 2008 unless there is an associated geopolitical collapse. I certainly don't expect Bay Area prices to rise much more. I think they will stabilize or fall only slightly. My reasoning is based on the fact that there's such a large population here that is just waiting to buy. Even if prices fall slightly people on the sidelines will start buying.  Thats why I think a decline will not affect the Bay Area greatly. 

Post: what what you do? First purchase high interest rate East Bay, CA

Bunmi AjosePosted
  • New to Real Estate
  • Bay Area, CA
  • Posts 4
  • Votes 0

Hello Matt and Brain, 

Matt- thanks I'll send you a message

Brian- thanks I'll send you a message too. when fully rented its at about .77 at least at the initial rate I had. That was the best I had seen for the east bay at least thus far and then with the base allowed rent increase I figured I would get there, but yes it doesnt meet it now... Im certainly interested in you thoughts regarding appreciation in the Bay Area. while I don't think it will be equal to what it was I think it will keep pace with inflation... is that not correct

Post: what what you do? First purchase high interest rate East Bay, CA

Bunmi AjosePosted
  • New to Real Estate
  • Bay Area, CA
  • Posts 4
  • Votes 0

Hi Jaysen, 

Thanks for your thoughts! While real estate can be expensive here in California I didn't expect that type of rate adjustment just for the change in property type. Im keeping my cashflow numbers on the lower side overall because Im ok with buying and holding till I die :D, though since Im a newbie Im still trying to figure all of that out. 

Post: what what you do? First purchase high interest rate East Bay, CA

Bunmi AjosePosted
  • New to Real Estate
  • Bay Area, CA
  • Posts 4
  • Votes 0

Hello All,

Id really appreciate some advice on a property that Im looking into purchasing for my first investment/home in the east bay, California. Price 1.3 mil. Its a multiunit with 3 houses on one lot. All are occupied with tenants. The gross rental income is 8050. I was initially planning on continuing to rent them out but the lender for that option with 15% down didn't like the fact that the homes were detached and that one of them was un-permitted. It is a place I would like to live and so I looked into additional loans add went the portfolio route, but no success thus far. The rates just seem really high. I went from 3.62% 30 year fixed to a 6.25% 5 year ARM. I just think that interest rate is a lot. It puts my PITI at 8262 monthly not including utilities (~ 240/month) and then saving for cap ex, vacancy, and the repairs necessary to bring the un-permitted unit up to code. Also lawyer fees to deal with the move-in and subsequent payout (~ $15000) It's in an up and coming area though I do think the rents are close to the max for the neighborhood currently. Certainly the place will appreciate, but Im concerned about waiting for that. The current loan requires 15% down and is at 6.25% 5 year ARM.

Thanks!