All Forum Posts by: Brian Spohr

I don’t understand why they would do that. It decreases the value of their property. Let’s PM and I’ll see what other info I can provide. 

It sounds to me that the approval process in this case wouldn't be too painful, as the city is encouraging this development and the property is abutting another property of this type. What is the Zoning/General Plan?  

I'm not sure what the condition is, but you could probably get rents in that range without any renovations. If you do rehab, I suspect you could get more, but depends on knowing more about the property. I would also refer to Rentometer for rental income estimates. 

Regarding the leases, I suspect that they are month-to-month and tenants have lived there for more than a year, which would require a 60-day notice. If they have occupied less than a year, it is 30-days. If there is a lease, refer to that.

Without knowing more about the property or seeing the numbers you're using, it will be hard to provide any input on the deal and anticipated return.

Congrats and thanks for sharing! Are you considering other flips/investments in this area or did this experience turn you off?

Hi Stephen/All, I'm in San Jose as well and am interested in learning more about your experience with ADU's and plans for the future. I had written off investing locally, but perhaps this niche pencil's out! Let me know if you need help with zoning and valuations questions!

Hi Kay,

The R-M Zoning Ordinance does not specify an FAR for multi-family, but says "a single-family house in any residential district with a floor area ratio equal to or less than forty-five hundredths or height equal to or less than thirty feet and/or equal to or less than two stories." The minimum lot size for R-M is 6,000 sf so you will need to request a variance. Due to the smaller size, it becomes difficult to say what size/number units you could develop but here are the setback requirements: 

I think you're on to something but it may be some time before Burbank itself experiences the level of development happening in Sunol-Midtown to the east. I'm seeing lots in the area are 4-5k sf so finding a single large lot may not be possible. Perhaps purchasing a single property and then acquiring neighboring properties can be achieved though.

Hi, Khaled. Because this is a leased/investment property, you are interested in the leased fee interest (landlord) and the income approach, even though leases will expire in 3 years. A credible appraisal would likely present both income and sales comparison approaches, with the primary being the income. The sales comparison is where the $/sf comes in. As for the rollover in 3 years, take into consideration your market projections, lease-up costs, and account for any added risk in the cap rate. A broker opinion may be enough to help you make an offer. A lender will have an appraisal done.

I've appraised a few post offices and IMO the rents are generally not set at market due to the Scope of Work determined by USPS. Leases are usually flat (no increases) and for a period of 5 years, with two 5-year options to renew at a predetermined amount. Also, repurposing the improvements for another use may be difficult depending on the construction. Likely uses would be a day care, fitness center, church, and if it's a smaller building, then retail. The clear upside is the incomes are very secure. Hope that helps!

Hey, Melissa!

I'm new here as well and from the area (San Jose). There is a meet up in San Jose on May 25th if you're interested (I think I'll be going). 

https://www.biggerpockets.com/forums/521/topics/31...

Those skills can definitely come in handy to someone like me! And I'd be happy to share my expertise a an appraiser. Let's stay in touch.

-Brian