All Forum Posts by: Calvin Kwan

 Agreed, but with existing rent roll, it still cash flows.  I think that's the point.  Upside in rent is there, but not expected.  Appreciation is also a plus.

Give @Chris Mason a shout!  

I started out investing in North Oakland with a duplex back in late 2016. It cashflowed from day 1, and doubled in appreciation in 2.5 years. Leveraged the appreciation to get a HELOC for a downpayment on a vacant Triplex that just closed last week. So yes, it's possible.

I don't think it says anywhere that the tenants aren't paying rent. I'm guessing they're just tired of prospective buyers asking if they want to get bought out. 

Again, with the existing rent roll, it's still a cashflow positive investment. 

Yeah, I assumed tenants wouldn't be moving out.  Still, it's a positive cashflow opportunity at that price.  The upside is definitely there.

Your assessment of B-/C+ neighborhood is probably accurate, though I would lean more towards B-.  

Just saw this property "sold" on my Redfin alerts.  Location is Oakland, CA. in an area I would consider class B.  Each unit has 4BD/1.5BA, and at market rates, would command $3400-3800 per month each (given its proximity to BART).   

https://www.redfin.com/CA/Oakland/3003-Martin-Luther-King-Jr-Way-94609/home/127066720

Asking was $749K in January.  Lowered to $699K in April.  Just sold for $575K.  Currently fully tenant-occupied at with rental income of ~$4500.  

Assuming 4% non-primary resident loan, 25% down, and all expenses accounted for, I'm seeing a net cashflow of over $1200/month, or 9% CoC.

Not the greatest return, but when you account for appreciation and rental upside, this is probably a winner. 

Thoughts?

How are lenders drying up?  I was working with @Chris Mason on a deal a few weeks ago.  It didn't work out (due to appraisal, not Chris - he's great), so I ended up with BofA.  

I've been using Cozy for the past 4 years.  Love it.  

Ugh... images didn't upload properly the first time.  Here they are again.

Original Layout:

Unit 1:

Unit 2 & 3: Option 2 & 3

Hi All!

Closing on a triplex soon and will need to do some extensive remodeling.  Working on the layout now and would love some feedback.

Here's the original layout of the property.  It has a pretty terrible layout as it is.  Unit 1 is downstairs and is currently a 2BD/1BA unit - pretty straight forward.  Upstairs (Unit 2 & 3) is where things get really funky.  See below...

The upstairs common foyer (circled above) splits Unit 3 right in half, with the Kitchen/Bath on one side, the Bed/Living Room on the other.  The issue is that the foyer also provides entry to Unit 2.  Basically, Unit 3 tenant has to cross that common foyer to access the Kitchen/Bath from his Living Room - not ideal.

So here are the plans I've worked up for all 3 units.  Would love your feedback!

Unit 1:  Convert 2BD/1BA to 3BD/2BA.  Should be pretty straight forward.  Convert the Dining Room to a Bedroom and convert the Breakfast Room to a Bathroom.  I toyed with the of turning the Breakfast Room into an addition Bedroom, but I think 4BD w/ only 1BA wouldn't be very appealing. RIght?

Unit 2 & 3 - OPTION 1:  Keeps similar layout.  Enclose the upstairs common foyer to create a private hallway for Unit 3 to access Kitchen/Bath.  Unit 2 would enter through the rear of the unit.  There's an exterior rear stairway for access, but it is in very poor condition - it will need to be rebuilt.  Question - Should I keep the original Unit 2 entry in the enclosed hallway (would add double cylinder lock to the door)?  I'm afraid if I need to get appliances into Unit 2, I can just use the main stairway, instead of going around the rear entry.

Unit 2 & 3 - OPTION 2:  I really like the idea of both tenants using the main stairway to enter their units.  I'd rather tear down the rear exterior stairway and not rebuild it.  OPTION 2 completely changes the layout around, but also adds another unit to Unit 2 (2BD/1BA instead of 1BD/1BA, more cashflow).  As I am changing the units structurally, moving electrical, plumbing, etc., I'm guessing this is going to be quite expensive.  Question - Would the cost of changing the layout around, moving structure, electrical, plumbing, etc. be significantly more than rebuilding a set of exterior stairs?  Again, I really don't want to rebuild those stairs and the additional Bedroom in Unit 2 is really appealing.

Would love all your thoughts and feedback!  

Thanks, BP Fam!

Calvin