All Forum Posts by: Calvin Kwan

I've been looking in the Oakland/Berkeley market for the past 4-6 months and have come across some deals that will cash flow positive. CoC is usually around 2-4% and cap is somewhere around 5-6%. Not the greatest, but that's me running the numbers and using a conventional loan and looking at vacant turnkey properties (properties that require relatively minor work). I've put in about a dozen offers or so, and have been outbid every time. That's probably because the properties I'm looking into are turnkey, making them super desirable for foreign cash investors - people who can set it and forget it.

Like you, I live in SF but want to invest in the East Bay.  House-hacking would definitely be a good idea, but I believe if you evict and occupy a unit, you have to live there for 36 months (folks can correct me if I'm wrong).  The other option is to buy properties that require work, fixing up, then renting out.  You won't be able to get a conventional loan, and may require a 203K, but I'm starting to see that's the best option in this hot market.

What time frames are you guys currently seeing?  

Hey Guys,

In a competitive market, what time frames are you giving on your contingencies?  My agent is suggesting a 10 day loan, appraisal and inspection.  30 day close.

Does that seem a bit aggressive?  We've identified an owner that is very motivated to close a deal, so I want to be competitive, but not short change myself.

Thanks!

Calvin

OR... couldn't you keep it as your primary residence without living there, then Airbnb it out full time?  Not sure you'll get as much income as a steady tenant, but it may be a way to get an primary residence mortgage?

My loan offer was telling me to do the same, but you're taking a pretty big chance.  It's mortgage fraud and a federal offense.  What would happen if you had a bad tenant that reported you?  Your loan can get pulled or even worse.

I opted not to do it since I can pay the 25% and .25 points more for an investment loan.  At least I don't always have to worry.

A meetup idea just came to mind!  Maybe a group of 'newbies' can tour open houses with a seasoned investor/GC on the weekends.  In return, the group buys the investor/GC lunch or dinner for their time.  I'd definitely sign up!

 I'd love to see Multi properties!  Thanks!

Is there anything spreadsheets that indicate whether the property is a SFR or Multi?

Thanks!

Hey Guys,

For my first purchase, I've been approved for a primary residence loan.  How long am I required to live in this place?  I intend on house hacking, but if i find another deal, can I move out and secure another primary residence loan?  Will my interest rate change for the initial primary residence loan that I am moving out of?

Thanks,
Calvin

Thanks for scaring us straight, @J. Martin!