Daniel,
This kind of thread doesn't get a lot of responses because
1) If you share your success, people say you're bragging.
2) If you share your mistakes, people say you're stupid.
It's almost a lose-lose situation. What the heck. I'll share it anyways. :0)
I'm a South Bay guy. Bought a six all 2/1 unit apartment building in May of this year for $1.175MM. Brought rents up 31%. Just completed a cash-out refinance. Appraisal came back at $1.55MM. My partner and I put less than $3k into rehab on one of the units.
Currently in the process of refinance a 7-unit building, which also bought in May for $1.125MM. Spent about $42k in rehab on 3 units so far. Brought rents up 36%. In the process of doing a cash-out refinance now. Appraisal will be done this Thursday. Had an unsolicited offer for $1.5MM two months after we bought it, but we turned it down. Don't want to pay short-term capital gains, and there's no reason for us to sell.......yet.
Bought an 8-unit building in July for $1.225MM. In the process of stabilizing the building. So far we have brought rents up about 31%. Looking to do a cash-out refinance early next year.
Only if we could bring rents up to fair market rents. God knows how much the value of these buildings would be.
We have been turning down okay deals while others are jumping all over them and willing to pay higher prices then us. Patience is the name of the game.
As a side note, I believe I have scored big on a partnership with an East Bay guy I met here on BP. We're going to make millions together. That's for sure. I guess I can count that as an East Bay Success. :>)
Cheers.
