All Forum Posts by: DG A.

Hi Calvin, 

I'm curious to learn what neighborhoods you see as mid gentrification and working class. Can you share the general neighborhood where each property is located?

I'm about to into contract this week on a property in San Antonio park in the 94606 zip code in Oakland. I feel like "east lake" all the way from Lake Merit to 14th ave is gentrifying and will appreciate well.

I'm on the other side of 14th ave, closer to 20th ave. I feel like I'm on the fringe of the appreciation wave that will hit the East Lake Neighborhood. I'd consider my location to have a good chance catching some appreciation, but probably not as much as properties on the Lake Merit side of 14th ave. 

Thanks @jthomasmartin1 

Thanks for the recommendation. I've reached out to a few attorneys. I found a couple of good ones that I'm talking through this stuff with. 

I'm working on an FSBO deal that I found. So, I'm going to have the attorney quote me on 3 things:

1. Review the California Association of Realtors standard sale contract. 
2. Legal research, and a memorandum with advice about my rights as an owner-occupying landlord, and the current state of the rent control laws and evictions laws in Oakland. 
3. A flat fee quote on a specific type of eviction. Essentially, I could use the "Just Cause" exemption to evict a tenant, where I am the property owner, AND I live on the property, AND the property is 3 or 2 units, AND I do not claim a homeowner’s property tax exemption on any other real property in the State of California.

I want to help other folks who are starting out, and in a similar position as me. I'm just getting started, and all I have is a 3.5% down payment and an FHA loan.

It's definitely rough making deals work in Oakland right now.  So, what ever I wind up learning, I will post here for others to learn from as well. 

Thanks Chris!  And thank you too J. Martin.

One last question for all, who is a good lawyer to talk to about this in oakland, ca? 

The laws here are very restrictive.  A landlord really cannot evict a tenant under most circumstances, with a few specific exceptions.

Hi Everyone, 

I have read measure EE "Just Cause for Eviction" rules in Oakland. I see that the rules DO NOT apply to a property of 3 units or fewer, where the owner lives in of the units. Here's the language from the document: 

I'm offering on 2 different duplexes right now, and I intend to owner-occupy if I get into contract. In this case, I meet the requirement that excludes me and my property from the "just cause for eviction" requirements. 

One of the duplexes I'm offering on has one empty unit, while the other unit is rented to a tenant paying about $1,000/month below market. The other duplex has both units occupied by tenants, and both units in that duplex are rented below market by ~$1,000/month. Both duplexes are in the Fruitvale area in Oakland's 94601 zip code.

My questions are these:

Is my interpretation correct, that, because I intend to live in the duplex I buy, measure EE -- just cause for eviction does not apply to me?

If just cause for eviction is not applicable to me, I intend to evict the tenant and bring the unit up to market rate rents. How do I go about evicting low paying tenants?  Or is it really as straight forward as contacting a lawyer, and posting notices under their instruction?

For the duplex where both units are occupied, I'll have to first get one of the tenants to agree to move, to open up one of the units for me to live in. And then, I'll need to do an eviction without the requirement of "just cause" as outlined in Measure EE. Let's assume in every instance here that the tenants have been living in the units for ~3 years and are on month to month leases. Is the process really as straight forward as it seems? Or am I blind to a million things that will stop me?

It seems to me, that I have an opportunity to create value for myself by buying properties where the tenants are paying low rents. Often, the low rents are holding down the value of the property from the perspective of investors. As an owner-occupy guy I can buy the property that does not have a high enough return for the investor that lives off-site. Then I can evict the tenant, and rent the property out at market rate. This seems like a path to cash-flow, which is rarely an opportunity here in Oakland for a guy with a 3.5% down payment and an FHA loan.

Am I onto something here?

I'm aware of the 90-day moratorium on evictions and rent increases on rent-controlled properties in Oakland right now (as of April 5th 2016). I have no idea how eviction policy will look on the other end of this 90-day window. 

-Danny

Hey Guys, 

I've got a straight forward question here. How do you go about determining what the rent will be on a property in Richmond CA? 

As I browse through craigslist the rents in richmond are wildly variable. 

What do you his think this means for sale prices on 1 to 4 units in the 90 moratorium period? 

@Chris Mason

I've made about 10 offers in the last 3 months. My concern is about cashflow. I'm hoping to get into a property, and then be shopping for my next one in 1 year to 18 months. The most recent suspect is a 3 bedroom 1.5 bath, it has mortgage with PMI that'll be ~2700, while rent in Fruitvale area is about 2250 for that type of house. Plus this specific property is on a rough stretch of 35th Ave: ( https://www.redfin.com/CA/Oakland/2626-35th-Ave-94619/home/552254 ) --- so my concern is that rent won't increase enough to cashflow and cover the mortgage, repairs, and vacancy when I'm ready to move out.

Do you think I need to get a longer timeline for moving on to property 2? Or do you think the home will appreciate enough to refinance out of PMI within a year or 2, so I can drop the monthly payment to a place where it could cashflow?

@Joshua David Thanks for the comment. Are you saying that it's a risk because of vacancy rate in less desirable areas? Or, is this more of a CapEx concern?

Hi All, 

My name is Danny. My day job is in A/B testing websites and doing conversion rate optimization to get more revenue/purchases from people visiting websites. 

I've been pounding the pavement pretty hard since December of last year to find a solid first deal in here Oakland CA. I'm finding that good deals are few and far between, like 2 months or so between good deals rolling on the MLS. I found a duplex out by 73rd Ave in Oakland that I Offered 380K on, but was sold to a cash offer for 294K. Bummer...

I'm finding it's too expensive for me around Lake Merrit, West Oakland, North Oakland, as I'm only qualified to buy an SFH for up to 430K.

I am going to owner occupy the property I buy, so I don't want to end up in "too rough" a neighborhood out in East Oakland. I think I've settled on Fruitvale (94601 zip code) as my sweet spot, where homes are cheap enough, and I can see myself living there (and enjoying lots of tacos) until I get into my next property. 

Here's my situation:

• I've got 24K in cash for a downpayment
• I'm trying to finance with an FHA loan
• I can qualify for up to 430 on an SFH, or a 45% Debt to Income ratio considering additional income from rental units in a multifamily

I'm having trouble finding deals. I think listing agents shy away from FHA financed offers, because they take slightly longer to close.

I'm also confused by some things. Apparently it's legal to raise the rent on single family homes in Oakland, but not on units within multifamily buildings. 

I've considered looking in Richmond CA, but looking over the rental prices on craigslist, I'm seeing that rental income is kind of unpredictable in Richmond. Does anyone else feel that's the case?

I'm eager to jump into my first deal, but I keep hitting snags. Any advice?

Nice to meet you all.