All Forum Posts by: CJ Wilson

This approach wouldn't really make sense in a lot of markets. New homes in theory would command a premium, but that doesn't mean the neighborhood could/would support it. There are infill projects where this does happen, that would be an exception.

You would also have to account for time, it can be slow to get permits (if even allowed) and then you'd still have build time.

You would be better off making agressive offers on the property that would account for the potential decrease in value. And since this is assumed to be a rental, you could also spend the extra effort to really dial in the exact rents vs ballparking it.

Makes sense. When making an offer, do you account for the potential for property value decrease in your offer value? If so, how are you determining that value to underbid?

0 Votes

San Francisco, California

Quote from @Nathan Gesner:

Quote from @CJ Wilson:

Betting on appreciation in California today is unwise. We just saw astronomical price increases for two years straight. The market has not finished correcting. Anything you buy today may take 3-5 years to appreciate.

What are the best indicators that the market is still correcting or done correcting? Is it just closely watching average home price trends per area or are there other things you are looking at?

0 Votes

San Francisco, California

Hi BP!

In markets with fairly big swings in appreciation (like California), Ive heard on a few podcasts that a good tactic to tell if the current price is a safe one is how it compares to the cost to build a new home that’s similar, and if it’s less than that it’s probably a safe bet (given of course that you’ve run all the numbers and it maths out, I know to never bank on appreciation, icing on the cake). What are your thoughts and what’s the best way to determine that new house cost? Is it just to get prices of recent home builds in the area from real estate agents?

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San Francisco, California

Quote from @Matt K.:

Quote from @CJ Wilson:

Quote from @Matt K.:

Quote from @CJ Wilson:

Hi BP!

I’m researching the schools in a zip code I’m interested in using www.greatschools.org. Do you generally include the charter schools in your analysis or mostly focus on public?

It'd depend on the value you're placing in the schools. Most places have a popular school/district with the residents, but it's not always reflected in the ratings. You'd have to dig on social media and local blogs etc.

But generally speaking as long as the schools aren't actually terrible, it likely won't have a huge impact on the property or it's already priced in.

Ok thanks. I'm looking in West Oakland where the public schools seemed to be rated pretty poorly. You mentioned checking social media or local blogs, how do you go about finding that information?

Google, next door, Facebook....

But what's your play here? Why you targeting schools for a value add to the property? West Oakland is plenty popular with working professionals where school isn't as important as commute/social (food, nightlife, stuff to do).

Just search west Oakland blogs and add schools at the end if you want more focused on that. You're looking for schools that have a strong sense of community, where people would want to move into a rental to go to...

That makes sense, I like your comment about looking for schools with a strong sense of community. I'm trying to get a grasp on all things that would affect tenant rentability. But you're right, given the location, families with children are not necessarily my target audience and so schools should not be weighted as strongly in my consideration. Thanks for the help!

0 Votes

Oakland, California

Quote from @Matt K.:

Quote from @CJ Wilson:

Hi BP!

I’m researching the schools in a zip code I’m interested in using www.greatschools.org. Do you generally include the charter schools in your analysis or mostly focus on public?

But generally speaking as long as the schools aren't actually terrible, it likely won't have a huge impact on the property or it's already priced in.

Ok thanks. I'm looking in West Oakland where the public schools seemed to be rated pretty poorly. You mentioned checking social media or local blogs, how do you go about finding that information?

0 Votes

Oakland, California

Hi BP!

I’m researching the schools in a zip code I’m interested in using www.greatschools.org. Do you generally include the charter schools in your analysis or mostly focus on public?

0 Votes

Oakland, California

All Forum Posts by: CJ Wilson

CJ Wilson has started 2 posts and replied 6 times.

Post: New Home Build Cost Comparison Tactic

Post: New Home Build Cost Comparison Tactic

Post: New Home Build Cost Comparison Tactic

Post: Include Charter When Analyzing School Districts?

Post: Include Charter When Analyzing School Districts?

Post: Include Charter When Analyzing School Districts?