All Forum Posts by: Dylan Grabowski

Hello to all the fine folks at BP!

I live in an expensive market. I'm also studying REI and building up a down payment for a property sometime down the line. These things take time, but...

Is it even worth looking for a first property (I'm mostly interested in 2-4 unit multi-family) in an expensive market? Sure, there's 3% down lenders (which I haven't met yet) and FHA. But, at what cost?

I want to live in my own home, and rent out other units. However, four or five properties can be purchased in other markets for the same price as one property in the Oakland/East Bay area.

If you've gone through similar thought exercises, what were your conclusions? If you've invested for a long-time, what are your words of wisdom? Advice? Thoughts?

I'm interested to hear what the minds of BP have to say about the topic.

Cheers!!

@Stefan Isaksen I'd love to attend. Count me in!

@Joe Schmitt listening to BP episode 18, the guest mentioned you can get a permit for bandit signs. If you're interested in less potential issues.

Cheers!

I'm interested in this thread, but would like to ask an expert to provide additional input. Wouldn't an FHA loan be out of the question as @Joe Schmitt already owns and resides in a personal home? 

Thanks!!

EDIT: Are bandit signs illegal in your market? They are illegal in CA.

@Scott Trench and @Vanessa Thiele would the down payment requirements be less of a total % if @Terrence W. were to move into the property himself? Would lenders think about 10%? Or less, if he's a first time home owner? Would CHFA help finance if Terrence were moving into the property?

Thanks!

@Derek Daun, exactly! It's my understanding that the current tenant, who's "expressed interest in moving out in May," has been there for quite some time. As the unit remains sight-unseen, I'm just going to venture a guess that there will be some cosmetic improvements necessary.

@Derek Daun the catch to the owner-occupied issue of the tenant moving out, was that I'd prefer to live in the other unit, and renovate while living there, renting out the recently renovated and higher-rent unit. 

Is that what you were getting at?

@DG A. very interesting. Not only was this post informative about negotiating, but the two tips you had also were very noteworthy. Thanks again for helping me understand the Oakland market a bit more!

@David Faulkner long answer to a simple question? Sure, but I appreciate the information as I'm still learning this new realm. The detailed answer you provided, David, will most definitely help in moving forward and comparing opportunities to one another by using sold comps on Zillow/Redfin. Also, having some contingencies for when to back away from a deal is great advice.

Thanks!!

@Chris Mason thanks for the operating income statement, I'll keep that one on file for sure! And, I'll book mark the property tax website as well. Very useful information!!

@David Faulkner thanks for information on the self-sufficiency rule, and all the variances and potential issues with FHA. Your other question begs a bit more research. I've only been looking at comps on properties for sale right now. Maybe a dumb question, but is there a source for locating what homes have been sold for in the area?

Thanks!!

@DG A. again, more awesome insight that is so very much appreciated! How long did it take you from the day you decided this was what you were going to do, through the 100's of deals you reviewed, and finally closed? Did the process seem daunting, or impossible along the way? Did you have to budge a little more in your negotiations than you'd have liked to?

@Robert Marston thank you for providing some of your local knowledge and expertise in the comments. It sounds like the subject home has been on the market for a little bit. I appreciate the comment about negotiating. Little did bits like that really add to the arsenal of information. 

Regarding utility statements, are those impossible to get unless in escrow? Will PG&E hold that , EBMUD, waste management etc. hold that information from the potential owner until that point? 

Are the property taxes the same all over Oakland, San Leandro, Hayward area? 

Lastly, thanks for the information about the market in 94606. I liked the area. Are those statistics something that changes as drastically as every quarter?

Thanks!!