All Forum Posts by: Carlos Ptriawan

Where is the place in Honolulu that's good for an investment property with studio/1BR using fee simple? I see Makaha tower is nice, what's the vacancy rate in there?

@Andrew Postell what's the advantage of refi after one day ? can you give example ?

@Leslie Pappas: So If I currently I have $320K mortgage, I need to buy $320K 50% LTV DST. Which means I have to bring $160K cash when purchasing this. With a 5% return per year, The investment will produce $16K per year which is actually a 10% ROI investment from a cash perspective, is my understanding correct?

And .... The rest of the sales proceeds minus the debt ($320K), will be treated as cash boot, correct?

Question is how do I finance my 50% contribution if I don't want to take it from the equity that I receive? 

Any more advise on buying 1031 portfolio via roofstock ? is there any catch ?

If you want to avoid negative cash flow you need to be creative. I'm planning to buy another property in Bay area with larger square foot/smaller living space and building ADU on top of that. Basically converting your home to duplex,etc. That way cash flow is easy to mitigate after all the renovation costs/etc.Additional per sq value in Bay can be rented > $3.00/sqft .

Again, a home value in Tracy is still relevant to the development in South Bay because many tech engineers moved to Tracy as it's the last city that's affordable and the price is making sense. Sacramento and Stockton have their own economy.

If I want to buy in Sacramento (or even further out), I will buy multi-family with low GRM, there's still some out there.....

Mike V: how to buy the right property in Hawaii?

I am thinking on the same direction, if the next year price appreciation is near zero while price to rent ratio is higher than 20 and your equity is larger than 45 %, with this simple algo, it makes sense to sell rather than buy and hold.

We can buy it again anytime anyway ....

There're lot of fixed income funds outthere that can give decent return of 6-9pct with decent risk.

I am thinking in the same direction. Those three areas seem still possible to have positive cash flow. What really drives the price in bay area/silicon valley is the new immigrant young family coming to bay that work in South bay and looking for a great school. Many engineers in South Bay is living in Tracy due to train availability from the south bay to Tracy. Stockton is just too far off from South Bay. Sacramento is not for a south bay engineer.

In term of price, in Tracy, you could get a nice SFR for $300k. The neighbourhood is pretty decent too, unlike Stockton, many South Bay Engineers avoid Stockton altogether due to various reason.

Many engineers moving to mountain house near Tracy, that may increase Tracy value a little bit.

In Sacramento, you could get MFH with pretty decent GRM.

For me, it is either Sacramento vs Tracy, and if I work in South Bay, it's still possible to live in Tracy (even Manteca).

Hi Adam, Is the school fee to build ADU that you mention a one time fee or annual fee ?

Thanks

I read from the latest ADU progress :
(1)
https://www.newavenuehomes.com/legislation-update-ab-68-ab-881-and-sb-13-help-address-californias-housing-crisis-through-adus/

We first told our readers about these bills in July. The bills are making rapid progress, but they haven’t passed into law yet.AB 68 makes it harder for city governments to stop the construction of ADUs. It also gives homeowners the power to build a second ADU on their property. It will dramatically increase the number of new homes available in California.Status as of 9/16/19: AB 68 has passed and is headed to the governor’s desk.Learn more about AB 68.


......

(2)
https://www.hausable.com/adu-guides/california-takes-another-big-step-to-promote-adus-statewide


AB68 & AB881 (Overlapping bills)
Removes minimum lot size requirements for ADUs
Reduce maximum setbacks applicable to an ADU to 4 feet
Increases the size limit of an ADU substantially
Voids FAR, lot coverage and other standard's applicability to ADUs
Reduces the max approval time for an ADU to 60 days
Exempts garage conversion ADUs from replacement parking
Allows for up to 2 ADUs on multi-family properties
Allows a single family property a conversion ADU and a JADU per property

Questions:
- what is the right interpretation of having two ADU/JADU per property ?? Does it mean one attached dwelling and one more detached dwelling is allowed ?
- if yes, when can we start working on it ?

Thanks


Carlos