All Forum Posts by: Jim G.

Thanks for all the response! @Account Closed thanks much for these operational advice.  You are ahead of me.  I would ask these type of questions when I identify what type of asset and geographic location I want to invest in.  At this moment, I focus on strategy such as asset type and location etc.

For longer term (>5 year), definitely is yes.

Plan to sell two SFH for an 1031 exchange. Never done any 1031 before. Need your input on what type of asset to go after. I know 1031 exchange has time pressure. I better to do a lot of homework ahead of time to narrow down a certain class of asset, its geographic location etc, before selling my existing SFH. Two SFHs would like to sell: one is in Bay Area with base 450K, now worth 1.3M which is only renting for 3.7k/month. Another one is in NC with base 265k, now worth 380k which is renting for 1.8k/month (this one can be optional as it doesn't have much taxable gain anyway). Both are currently in Month by month lease. Hope the new asset (target value 1.7M or a little more) would be:

1. Easy to manage

2. Prefer to be located in CA, close to NorCa is prefered or maybe stretch to Reno, NV that still would be in driving distance.

3. I am not looking for super high cap rate.  Reasonable is ok.  Key is stable and low risk (Not looking for partner or joint venture that seems would increase the risk)

So what type of investment and geographic location I need to look for?

@Jennifer Thomé 
I think you need to focus on the cities (or metropolitan area) instead of states. I just happened to hold SFH investments in Phoenix, Dallas, and CA Bay Area for more than 10 years. My top equity return was Phoenix and Bay Area. Top cash flow, short term (< 3year), was Phoenix and longer term (5+year) was Bay Area. Of course I am holding most of my properties 7-8 plus years now and past performance doesn't mean to future returns. It is just for your reference only.

I think it is THE time to buy urban condo, especially in SF and NYC.  Just snap one in SF with 20% more off last year price.  Don't expect with cash flow in 1-2 years though. It would have good return in 5-10 years horizon, IMO.

Bay Are is so big and diversified. If you are talking about SF market,  

https://www.noradarealestate.com/blog/san-francisco-real-estate-market/

@Isi Nau Thanks a lot for the info.  Given the scarcity of NUC in windward, I guess the list probably would mention if it is qualified, which obviously would add value.  I will pay attention on this.  

@Nick Ung thanks for sharing the zone map and NUC list that is helpful.  They are all around Waikiki or downtown area unfortunately that I would like to avoid. Wish you good luck to find your property!

@Isi Nau Thanks for sharing. Very good info. I am looking for STR in aohu waikiki and windward site. When I check redfin.com or some of MLS, how can I tell the property qualified as STR? If it is not, is it easy to be qualified for STR? I knew some city has very strict rule and license is very limited. Don't know the rule on Oahu

Interesting topic.  I actually moved from Austin to Bay Area 20 years ago for a startup.  I have no regret and have no plan to move back.  

Building an ADU in San Jose of CA. There is a 3'x1' sliding window in bathroom just above the tub/shower. The height from the floor is 68". Is this window require tempered glass?