All Forum Posts by: Hayden H.

Hey Kali, Not sure if this will help but I learned of onerent.co from Diana George a local real estate flipper and she recommended onerent. They charge 5% per month which is pretty unheard of in the bay area. I don't have any experience with them so dont' know of the quality but might be worth check it out.

https://www.onerent.co/

@Cooper Marcus is right, go to John, hes done most of the ones in Berkeley too.

$2200 for a 1bed 1 bath 564 sq ft unit sounds like too much, its on the commercial side of San Pablo as well. You can get 2 bedroom 1 bath 800 sq ft for $2500-$2700 in northwest Berkeley.  I'd bring that # down to $2,000. Your spreadsheet assumes you can purchase the property at 798K. Thats almost impossible. I think Stephen is right on 1.25M purchase price, might even be more like 1.4M. 

So no, no way for bay area property to cash flow, its just how it is right now unless you wanna go to bad neighborhoods.

 Hi Daniel, What part of the midwest are you from? Its probably easier to build wealth in the mid west with a portfolio of rentals than over in the Bay Area so I hope you take advantage of your market.

@Amit M. Yes thats right, and thanks for the advice, I agree with you, I never try to bid for a property assuming the market will rise 5-10% in the time frame I'm flipping. I try to figure out breakeven points. 

The two guys they mention in the article are coming to the Oakland Real Estate Networking Meetup in West oakland on Thursday. I'll ask them what lessons they learned from their experience.

You are absolutely right and congrats on 60K in 4 months. Frankly, I'd rather be a multifamily buy and hold guy or own a bunch of SFR but caprates just don't make sense in the Bay Area as prices are so high. BRRR is out the question because of this. I need to read the out of state investing book by David Greene!

 Yea hard money loans are rough. I'd rather work with friends as investors who will take a bigger share of profits but won't cause me to panic or make bad decisions if we get delayed just to pay back interest. 

 Sorry I read this as FIND instead of FUND. Need my glasses. My partner took out a home equity mortgage and I worked with a friend who has money to invest and I also invested six figures.

Hey Daniel, Thank you. When I bought the property, I estimated ARV at 1.2M based on comps. The lot size is extremely small ~2000, so hard to get real good comps and it definitely caps the sales price. Listed at 950K. The Bay Area East Bay has this questionable approach of always listing properties well below sale price to draw interest. I don't like it but its how the game works there.

 Thanks! My partner brought half the funds and he used a bank loan. I used my friend's and own funds.