All Forum Posts by: Keri Carpenter

I personally would take on the HELOC and purchase the duplex with it. I now have 10 properties that I've collected over 15 years and that's how I did it over the years. The numbers on the rental look fine if you're paying $860ish and can get $1500. You should be fine. I never sell and just buy more while I'll still young and hungry.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $1,700,000
Cash invested: $340,000

Purchased to live in it after renovation. Renovation is too expensive so right now we're renting it out to cover our costs while we figure out whether we can build our dream home there.

What made you interested in investing in this type of deal?

Good schools. Great place to live.

How did you finance this deal?

Conventional Mortgage with a lender found on these forums, Jessie Hinaman. He's great!

How did you add value to the deal?

Nothing as of yet.

What was the outcome?

We got it rented and it will cover our costs so we're currently in a bit of a holding pattern but fine.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Jessie Hinaman has been financing most of my deals recently.

agreed with @Ivan A. Luciano and @Sean Farrell.  Don't overthink it.  It's a good idea overall so get into action.  start putting down offers.  Most of them won't land in this climate.  Just keep at it and something will land.  

@David Lam Agreed with @Hayden H. that short term rentals in the area like airbnb would not be a good idea.  It's not desirable, nor a desirable location so I don't think airbnb would be a possibility.  Section 8 would be fine and I've done one and she was totally great, but most people in the area are just normal renters without Section 8 subsidies.  They are oftentimes really good people who pay their bills no problem.

One of the other commenters said the same, but if you are house hacking, I wouldn't worry to much about the 1% rule in CA.  If you're anywhere close to that and can live in it and carry the expenses, it will pay off over a few years.  And obviously will build more wealth than if you were renting during the same period.  And the upside is that CA appreciates more than other areas, so again, cashflow negative shouldn't be a disqualifier if you are living in the property and can carry the property.  I own 7 properties in various areas of CA and have owned them from 1 to 14 years so if you want an experienced reaction I could provide some feedback.  Good luck!

I have been investing in that area since 2008. I own 3 properties from 82nd to 96th ave. I own a 4 plex at 96th and olive, 2 SFR on 82nd and 79th ave, respectively. I bought them in the downturn so they have appreciated alot over the years. If you're young like I was when I started, I would definitely have been fine with househacking in the area. I was used to crappy areas of Oakland and was hungry to own something and build some wealth so I would have lived anywhere necessary. If you've got kids and a family, I would skip it. In terms of it gentrifying, I definitely assumed that it would have gentrified and I'm 13 years in and counting. I don't think it will happen. Whenever I hear bad stuff about the area, I just go "Sigh. Oakland." However, they've performed handsomely as investments for me over the years. I have 13 units -- in all different types of neighborhoods. 3 in downtown SF, 6 in East Oakland, 3 out of state, 1 in Sacramento. East Oakland probably has its problems, but I've had crappy tenants in better areas too. Bad neighborhoods or good, most people are cool, but some are a real hassle. I've done 6 evictions, come to think of it only from my East Oakland units, so there's that, but somehow it doesn't really phase me. I also have tenants in the area who I just adore and would do almost anything for. If you want a second opinion, if you send me the address I can give you some likely more detailed reactions to that particular area. I've had experience in almost every corner of East Oakland over the years. Good luck!

Steve Vaughan,

You seems like we're in a similar boat.  I'd love to hear more!

Hi @shaffi noss -- that would be really good if you could put me in touch with some people who may have done this.

I mean, technically, I guess real estate is just a part of my retirement portfolio too, but about 90% of my Net Worth is tied up in my rentals, so the extra seems not worth worrying about.  I'll DM you to see if you have any leads!