All Forum Posts by: Nhi Nguyen

Ok I just verified with my mom.

She said more like 10-15 passings. She couldn’t stand it. Lol.

Dawn it. Cash flow and upside was pretty attractive. And yes, rents were only 5% vacancy in the last 2-3 years. It’s too expensive to rent around here!!!

I either have to drop the deal, or dramatically remodel at least 3-4 units (super close to rail road) to help tenants cope with the noise (maybe sound proofing walls, new windows etc ...).

I’m not worrying about the rents/cash flow. But since purchase price is high, my exit strategy (resale after 5-7-10 years) has to make sense.

@Erik Hatch

I parents used to live in the same neighborhood just 4 buildings down the street. They said it is loud. They wouldn’t buy houses there - but they were only renting. Reason they picked that place was for the nice unit and a bit lower rent.

I only talked to the ones closest to the railroad. They said it’s loud, of course. But I guess renters favor lower rents over convenience- sometimes.

@Corey Hawkinson

Did you factor that in your offer for some discount compared to otherwise?

Thanks all for the great inputs.

I have some experience in rentals and am learning every day to improve. I’m also a general contractor & home inspector. On top of a third party inspection report, I have my own inspections & detail remodel assessment.

I screened all my other tenants. And I’d like to do the same for my newly acquired properties as well.

I was thinking of notifying and re-screening for new leases as a new owner. But I need to find out if re-screening is a just cause for denying renewal.

This property can only be raised ~9% max/year based on new rules in CA. So relying only on raising rents on inherited tenants would take a while to increase NOI to the level I'd like.

That’s why I’m here asking what my alternative options.

There’s train passing by about 2-3 times a day, honking when approaching the intersection. So it would honk right at the property.

Would you do it if the numbers work out and there’s still plenty upside ?

If you would, how much (% or fixed figure) lower would you offer?

If you wouldn’t, is that a firm answer every time there’s a railroad?

Thanks.

Hello BP.

I'm looking to buy a 12-15 units MF in NorCal.  One of them has 100% MTM rents at lower than market price (about 15-20%).  The condition of the units are pretty rough.  So if I remodel/fix them up, rents can be even higher.

What are some of the best game plans to tackle this, short term (within 6 months of acquiring the property) and long term (1-3 years)?  I'd love to remodel the units and raise rents, of course :)

thanks much.

Good day everyone. I currently have a single story SFH (1850 sqft) in front of a lot, size 75'x200'. I originally bought it to split into 2 lots (front 53x100, a 22' driveway to back lot with 75'x100'). My intention was to major remodel the front house to be about 3000 sqft, 2 stories. Once done, I'd sell it & get the money to build the 2nd house in the back with similar or bigger size.

This is in a better-than-average neighborhood of the city in Northern CA. On this street, there's mixed types of properties, ranging from MF to custom SFH of 3000-4000 sqft or similar. Comp for a new house is probably $400-$450, depending on quality of course.

Right now, there's about 100 brand new 3 level SFH development going on right in its back yard, ranging from 1700-2100 sqft. These sells for around $400/sqft. And, my lot is zoned medium density. I can build a max of 5 townhouses.

So I'm thinking: if I build 2 big custom homes, the value I'm asking maybe too much for people wanting to pay for around this neighborhood.  I've never done MF development before so I'm not sure on the total cost and time it actually takes.  But based on some estimates from city planning department and cost research, it could be a lengthy and costly process.  

If you've done it before (specially in the Bay Area), please shed some light on detail cost and time line please.

Now, I think I have 3 options:

1) Originally plan: split into 2 lots, 

 - remodel front house to build a big house (~3000 sqft) for front lot 

 - build new one (~3000-3500 sqft) in back lot

2) Split into 2 lots (same as option 1):

- build a smaller house (~1800-2200 sqft); build an ADU ~700 sqft for front lot

- build 3 townhouses in the back lot ranging from 1500-2000 sqft

3) Keep the whole lot, build 5 town houses ranging from 1700-2200 sqft 

I'm leaning toward option 2 for a couple of reasons:

- Quicker turn around: much quicker to get plans drawn up & get building permits for

- Can split into 2 phases: front lot, back lot

- Lower cost for phase one (front lot) 

- Easier to sell

- If I want to hold it instead of sell, 2 types of properties (SFH & town houses) is probably more preferable than just 5 town houses.

Opinion, advice are welcome please!

Thanks.

Thanks. 

Hi Linh.  Where are you located?  I'm in Hayward but have projects in the South (SJ & Los Gatos).

Thanks Jo-Ann.

Updated open house dates & times:

Move in ready.

Live in luxury and style! Quail Lake is in a highly sought after gated community in Clovis. This two story, 5/4, 4232sq ft has upgraded carpets in bedrooms and tile in the rest of the home. 

First floor: 1 bedroom, formal dining room, gourmet kitchen with beautiful cabinetry, a large granite center island, dining area, and built-in desk, formal living, a spacious family room, 2 fireplaces. 

Second Floor: Large Master bedroom and library opening to the balcony, a media room,and 3 bedrooms. Two air conditioner units, tile roof and 3-car garage.

WHAT I LOVE ABOUT THE HOME

This property on Newport Bay is conveniently located walking distance to the Charter School, great parks, beautiful lake, and Club House for those great summer pool parties!

Agents: Please bring your buyers.  2.5!  Please contact before showing since lock box is not ready till next week.

Thanks all for looking.