All Forum Posts by: Johnson H.

@Angelo Wong@Account Closed will be hosting tomorrow.

@Steven Lam @Ron Singh @Brian Larson

I just posted the next meetup for Friday, August 16. Angelo will be hosting and I am going to try to make it out. I forgot it was my sisters birthday!

https://www.biggerpockets.com/forums/521/topics/737520-san-jose-meetup-friday-8-16-19

https://www.meetup.com/SF-Bay-Area-Real-Estate-Investing-Club/events/263656571/

Hi All,

It's another month and time for another real estate meetup! These meetups have had BiggerPockets and Meetup.com members chatting about investing locally in the San Francisco Bay Area and also out of state. Just come by and mingle, there is no set agenda. We welcome anyone who would like to attend!

When: Friday, August 16th, 2019, 6:30pm (usually I'm around at 6!)

Where: Parktown Pizza Company (Find us in the back area/room this time.)

1350 S Park Victoria Dr
Milpitas, CA 95035
http://www.yelp.com/biz/parktown-pizza-company-milpitas?sort_by=date_desc

Please support the small business by spending some money and tipping for the great service we receive every month! (I don't pay for the space nor do I receive anything from the restaurant)

In lieu of the round of introductions due to noise, you may introduce yourself and/or list your haves and wants in the comments section of this meetup.

Looking forward to meeting new investors and seeing familiar faces.

Thanks,
Johnson

South Bay , South Bay Meetup , Bay Area , Meetup , Meet up , Meet-up , San Francisco , Oakland , Berkeley , Alameda County , Contra Costa County , Solano County , Richmond , Hercules , Concord , Albany , Pittsburgh , Marin San Rafael , South Bay , Peninsula , Walnut Creek , Pittsburgh , Antioch , Pleasanton , Fremont , Castro Valley, San Jose, Milpitas, Sunnyvale, Fremont, Palo Alto, Santa Clara, Mountain View, Gilroy, Santa Cruz

@Ron Singh Here is the link and I plan on hosting the next one in August!

https://www.meetup.com/SF-Bay-Area-Real-Estate-Investing-Club/

@Brian Larson - Feel free to join the meetup at the link in my signature. You'll be notified via email or the mobile app when we post the next one!

@Angelo Wong Will be hosting this month. Come by if you can, we have a good amount of people that already RSVP'ed on meetup.com already!

Hi All,

It's another month and time for another real estate meetup! These meetups have had BiggerPockets and Meetup.com members chatting about investing locally in the San Francisco Bay Area and also out of state. Just come by and mingle, there is no set agenda. We welcome anyone who would like to attend!

When: Friday, July 26th, 2019, 6:30pm (usually I'm around at 6!)

Where: Parktown Pizza Company (Find us in the back area/room this time.)

1350 S Park Victoria Dr
Milpitas, CA 95035
http://www.yelp.com/biz/parktown-pizza-company-milpitas?sort_by=date_desc

Please support the small business by spending some money and tipping for the great service we receive every month! (I don't pay for the space nor do I receive anything from the restaurant)

In lieu of the round of introductions due to noise, you may introduce yourself and/or list your haves and wants in the comments section of this meetup.

Looking forward to meeting new investors and seeing familiar faces.

Thanks,
Johnson

South Bay , South Bay Meetup , Bay Area , Meetup , Meet up , Meet-up , San Francisco , Oakland , Berkeley , Alameda County , Contra Costa County , Solano County , Richmond , Hercules , Concord , Albany , Pittsburgh , Marin San Rafael , South Bay , Peninsula , Walnut Creek , Pittsburgh , Antioch , Pleasanton , Fremont , Castro Valley, San Jose, Milpitas, Sunnyvale, Fremont, Palo Alto, Santa Clara, Mountain View, Gilroy, Santa Cruz

Thor, you have an interesting situation here. Pricing seems to be appropriate based on the rents you provided. Pro's of keeping it would be due to prop 13 and your lower tax basis. Pro to selling would be the the partial section 121 exclusion at this time. You could also use the capital gains money into an opportunity zone fund (third party or creating one yourself) to invest so that you don't have to complete a reverse 1031x. I think the biggest question you and your wife have to decide on is if you want to be landlords in SF and would you self manage or hand it off to a property manager. If you don't mind it and believe in the long term potential of the market, then keep it. Also, do you think one day you would want to move back into SF? If there is a chance, keeping it could be also ideal.

You can also complete a cash out refi to get equity out if you don't want so much equity tied up but your rate will be higher as an investment property. However, there are interest only options out there if you want more cash flow. You are definitely correct the vacant units are worth more. If you can buy out the other tenant, you would increase the value further I believe. Finally, there is nothing wrong with having cash on hand to do whatever you want with it. When you have liquidity, you have options. I am a long term bull for the SF market but I understand that everyone's financial situation is different. We just have to make our bets and move on. Good luck!

David, it is nothing special. I look for deep value that either I or time will unlock. This includes low price per units, significantly below market rents, ADU potential, soft story and mismanaged/deteriorating properties.The properties could easily absorb 20% rent declines. It's funny, when I said that I actually want turnover due to rent control to another investor, he mentioned that is the polar opposite of what others usually say. I don't think I can go wrong with buying well below replacement cost in great locations in the long run. I don't know if rents will continue to go up next year but I'm willing to bet that rents will be higher 10, 20, 30 years from now which allows me to get paid while I hold not just with the usual form of cash flow from rents but also cash flow from cash out refi's when the opportunity permits. I am with you being a believer in multifamily for the long run in prime and gentrifying areas.

That's said, I am not looking to be a hero in this market. However, I do know I am on the right track with the deals that I do chase. One that my partners did not see eye to eye on that I had to let go, ended up selling for $900k more in eight months. The seller bought for $2.75M on the MLS and probably put in $400k and turned it around quickly. The deals are few in this market but they are out there.

I personally know both of these guys. They are both smart and will learn from it. I hate to see friends lose money but in my opinion it was a blessing in disguise for them as they can rebound from this minor correction in their market than in a full blown correction it could have been much worse for them.  They also learned the true cost of hard money and how to manage their business during a slightly rocky time.

It was interesting to hear from them that their ARV's got hammered in the South Bay as my friends flipping in Alameda county at lower price points have been okay. Also, the market is still hot as evidenced by my search for a primary in SF and San Mateo county past few months. This April data that I just saw this morning agreed with my assessment. You can see in Santa Clara county sales got hammered at the $2 million range where his property was at but less than a million in Alameda county continues to increase YoY. SF and San Mateo still increased in the "affordable" $1-2 million range.

However, property under contract in April show a 9% uptick YoY so the demand is still there, probably because rates have dropped and although inventory has increased, it is still at historically low levels. It is amazing to see the high uptick in the $3 million plus properties in most counties in the Bay Area.

This data shows that you can't paint the Bay Area with a broad stroke anymore. I am not sure what the future holds, if your crystal ball is working please let me know :)

https://blog.pacificunion.com/bay-area-housing-market-shifting-in-anticipation-of-ipo-demand/