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All Forum Posts by: Francis A.

Francis A. has started 106 posts and replied 332 times.

Re: Duplexes conversions in the St Paul.

I have been looking at this subject from the opposite end of the spectrum.

Over the past 2 - 3 years, I've noticed that in some areas, duplexes are completely out numbered by single family residences.

For some reason, estimated sale prices of pretty much all of these duplexes are lower in comparison to the prices of the SFR dwellings (with similar sq footage etc) in these same neighborhoods. Maybe families (who can afford to live in these neighborhoods) would prefer a SFR with their own yard over living in a duplex in a good school district (with a shared yard) for example?

Anyway, after seeing the asking prices of some of the newer SFRs rise skywards over the last 2 years, the opposite of what I've always thought (regarding duplexes) dawned on me.

What if one these duplexes were converted to SFR dwellings? In the right neighborhood, I would have to believe that the (estimated sale price) of a newly converted duplex into a SFR would be significantly higher than the previous incarnation (IE: the former duplex).

Between the increased valuation of the newly created SFR and a competitively priced rent to attract a qualified tenant in search of a spot in your school district.... you get the point.

Regarding the prices of some of the SFRs near the top of some of these neighborhoods in St Paul. Most of them seem to be new which suggest that maybe the builders who put them on the market are strategically overambitious in their pricing? 

Another point to research would be if the city mandates that a certain number of duplexes have to exist. In that case, requests to convert to SFR may be denied?

Either way, converting a duplex into a SFR and possibly seeing the valuation of the new dwelling rise significantly (as a result of the conversion) seems like an anomaly that might only work in a select few places in St Paul.

An intriguing thought to ponder.

"The number of homes for sale reached an all-time low in December, as buyers remained active and eager to buy even during the holiday season. National inventory declined by 39.6% over the last year, and fell below 700,000 for the first time, according to a new report from realtor.com"

https://www.aol.com/middle-cla...

For California investors and especially for out of state investors. Watch the whole video. This will definitely make you sit up.

Legally turning my Single House into a TRIPLEX!

https://www.youtube.com/watch?v=EGdGuqP4OLc

This video will be of interest to both California and out of state investors. It's well worth your time. Enjoy!

Legally turning my Single House into a TRIPLEX!

https://www.youtube.com/watch?v=EGdGuqP4OLc

When I first joined Biggerpockets, this good man and wise investor was a skeptic investing in California. After a long absence from this blog, I am heartened to read that time and moving from the mid west to AZ has changed his perspective somewhat and especially about the warmer states in the Southwest. :-)

https://justaskbenwhy.com/2019/11/24/why-i-like-highly-competitive-market/ 

Originally posted by @Ann North:

They call it the Sunshine Tax.

What you pay for living in sunshine.

SoCal is not family friendly - in my opinion. The schools rank below Alabama. There are some private schools. I was told, when I lived there, that if you make  $400,000 private schools consider you a charity. When I would hope in my nice SUV to go to Staples, I would park next to a Phantom Rolls and a lady going to buy staples. IN a Phantom Rolls. That's LA. Don't go unless you got the BIGGEST POCKETS.

@Ann North - "The schools rank below Alabama". Can you be more specific with data perhaps? This definitely caught my attention. I did a quick check on the top universities in the US and 2 of the top 5 are in California. Maybe you're referring to grade schools, elementary or High schools?

@Taylor Scott Siemens

You hit the nail on the head. It seems you painted a picture for an article that came across my newsfeed this morning.

Here is a blurb: "San Francisco is considering imposing a fee to drive into its busiest neighborhoods. A fee to drive into parts of Manhattan was approved on Sunday as part of the New York State budget.

Here is the title:

Congestion Pricing: N.Y. Embraced It. Will Other Clogged Cities Follow?

PS: 

Your article on financing 2 times a year looks interesting. I have a friend who manages about 100 buildings here in LA. The one thing that stuck with me was what he said about his bosses constantly re-fi-ing their properties. Maybe they listened to you.  I'll pass it around my network.

@Brian Ploszay

Conversation interrupted by life but I'm back! I hope you all are well. Interesting comments that you put forth. In the end I think mindset factors in hugely in terms of choosing where to invest in RE. If for whatever reason, the investor is in a tough part of the country, having a the fortitude and desire helps to weather storms and be creative in terms of sticking with said investor's RE investments.

I just watched this video by Los Angeles realtor STEPHAN GRAHAM. You should watch it when you can and see what you think. Both he and another channel on Youtube called MEET KEVIN are milking Grant Cardone for all their worth. I totally get their drift. This video is along those lines also.

Google  -- " Lets talk about Grant Cardone and why I don’t buy 16+ unit properties".

@Eric M.

Regarding losing the museum. I read about the Friends of the Park group. Ironically, I totally get them. I have people in my circle in the field of planning. It's tough. Sometimes, you're damned if you don't and damned if you do. In the end, all they can hope for is that their decisions in the past proves to be at least close to what they hoped for.

In the meantime, I'll send pictures (if I can). Ha! 

Finally, there was another article that I think you all might enjoy reading for perspective on the Real Estate what the future portends.

Google --- " Big backyards and pools are California’s past. Apartment buildings are its future ".  

Originally posted by @Brian Ploszay:

@Francis A.

It is a preference, but after I left California for New York, I realize I like urbanism.  Los Angeles and its connected cities feels like one big suburb, dominated by the automobile.  You're right, there is more to do in parts of Los Angeles.  If I returned, I would have little interest in living in the Beach communities and more toward downtown/Hollywood.

Glendale/Santa Monica was an example of time consumption of travelling.  I now fly into Burbank because the commute to LAX takes too long.

 @Brian Ploszay

I don't want to say that downtown LA was a shanty town when I moved here from the big apple. That's too strong a word but BOY was it scruffy. I give a metric TON+ of credit to Mr Anschutz for building the Staples Center. He was way way way ahead of his time on that score. That building alone and the entertainment draw that it is and still continues to be, has single handedly led the transformation of downtown here. The building boom has caught on so much that you're seeing it spread to Chinatown.

You should see the place now. You want Urbanism? You got urban but the price I'm afraid has steeped up sharply. Funnily enough, we now rent to relocated folks from your adopted town.  I don't know if you're aware, but your town kicked the new George Lucas museum out of town. That structure is now above ground (so to speak) in the construction phase. 

For some reason, it garnered a lot of ill will in your town. I was kind of shocked.  One particular article was needlessly taunting in tone. Blew my mind. I have a certain family member who lived in Chi town for decades. He's still scratching his head at this. Meanwhile over here, I've taken pictures at each stage of the construction to document this. Once again, movement is afoot here. Downtown LA Honda has built a $30 million building a mere 3 blocks away in anticipation of future growth. New train stations are popping up in strategic locations which all but makes sure to enhance living (in terms of public transportation) here. As you know transportation and the 405 freeway alone can be a deal breaker. 

USC ain't doing badly either. (We'll try to forget the recent news about overzealous parents "trying" to make sure that their babies have diplomas from that famous school).

Pick your choice and from the following headlines and Google this museum topic. I'm still shaking my head.  

“Let’s celebrate the loss of the Lucas Museum”

“Editorial: Ugly parking lot victorious over Lucas Museum”

“Lucas Museum Chicago: Losing the Museum Would be Bad for Chicago”

"Lucas Museum drops plan to build in Chicago"

"Here's what you could have won: Lucas Museum breaks ground in LA"

"George Lucas Strikes Back: Inside the Fight to Build the Lucas Museum"

A while ago when the downtown transformation was taking place (and it still is) we almost rented an apartment above the Ralphs grocery store on the corner of Hope Street and 9th.  I first saw that kind of mixed use building in Georgetown, DC. Shopping, restaurants, cinema and grocery shopping in one building? I was hooked.

Check out "Curbed LA". Specifically, LA Development. You won't recognize it anymore. My folks down in MN and WI are still dealing with the winter. How's it where you are?