All Forum Posts by: Michael Sun

Hello, community members:

Looking for a HELOC to access some of the equity in my bay area primary residency. Any recommendations? Thanks!

Quote from @Carlos Ptriawan:

Quote from @Michael Sun:

Quote from @Carlos Ptriawan:

Quote from @Michael Sun:

Hey Bay Area investors! Newbie here, scoping out the market for my long-term rental property. Any suggestions? Is Tracy, Fresno, Stockton worth some research? Or Reno/Tahoe makes more sense?

 how much capital you have ? buying below 1.2mil is good long term from hayward pleasanton santa clara sunnyvale cupertino area

Hey, Carlos!

Looking for ~500K. I scanned through the listing in  Hayward and Pleasanton did not find anything close to that price point.

Looking at your experience, I was curious: do you think flipping is a good option for Bay Area investors?

 Flipping is good when you can always live in the flip, the strategy is following.

The "comps" in area like santa clara and sunnyvale for 3/2 is sometimes as wide as 300-500k. So home is being sold for 1.2-1.6 in the same exact block.

The 1.2 is usually home without updates, lets say you change everything into that house, you spend 100k. Then after three years you sold the house for 1.6 to 1.7k. You make 300-400k after 3 4 years tax free. That would b much better than flip and make 75k after 6 months.

If you can't live in the flip, that may not be a good option as risk is higher, so we do some  like rehab and live in it. 

Hey Carlos,

Thanks again for your awesome insights and for sharing your experience!

Live-in rehab definitely sounds appealing with the cost savings, but you're right - my family situation prioritizes stable housing right now, so it wouldn't be the best fit.

Tahoe STR: Thanks for the reminder about permits! I saw those regulations too and forgot when I was considered from an investor's perspective. Is navigating permits complex on both CA and NV sides? As for supply, interestingly I found my options are limited very expensive every time I visit as a guest. Also, managing STR remotely does worry me as well.

Hayward properties: Zillow listings show only 3 2B1B below $700k. Did you source your potential properties through MLS and open houses as you suggested, or did you use any off-market resources?

Sacramento vs. Fresno: My browsing of the public listings makes them seem similar, any personal preference between the two? How did you manage those mid-distance properties? Although drivable, 3-hour trips each way are a concern.

Thanks again for your time and expertise!

Quote from @Carlos Ptriawan:

Quote from @Michael Sun:

Hey Bay Area investors! Newbie here, scoping out the market for my long-term rental property. Any suggestions? Is Tracy, Fresno, Stockton worth some research? Or Reno/Tahoe makes more sense?

 how much capital you have ? buying below 1.2mil is good long term from hayward pleasanton santa clara sunnyvale cupertino area

Hey, Carlos!

Looking for ~500K. I scanned through the listing in  Hayward and Pleasanton did not find anything close to that price point.

Looking at your experience, I was curious: do you think flipping is a good option for Bay Area investors?

Quote from @Nick Maugeri:

Quote from @Michael Sun:

Hey Bay Area investors! Newbie here, scoping out the market for my long-term rental property. Any suggestions? Is Tracy, Fresno, Stockton worth some research? Or Reno/Tahoe makes more sense?

Hi Michael, interested to know what your criteria and strategy is. Modesto is a sound market for investing and growth

Hello, Nick! Thanks for responding! As mentioned in other replies, I'm ideally looking for opportunities under $500k with a more passive  approach. Your suggestion of Modesto, which within a 1.5-hour drive of San Jose definitely caught my attention!

Modesto hadn't crossed my radar before. Any chance you could tell me a bit more about it? I'm particularly curious about the market and overall vibe of the city.

Quote from @Jeff Zimmerman:

hey Michael, awesome that you are getting started.  Fresno is a great place to look as we continue to grow in population and will continue to have a housing shortage for years to come.  Cash flow takes good vision and great "hunting" for the deal, but it's certainly possible.  Our appreciation has been through the roof and is much easier to come by especially with some value add instead of just having passive appreciation.  Last year when interest rates caused everything to slow, our average price/sqft only went down by 0.004%.  That should correct and go back up another 3% this year conservatively.  Overall we are optimistic on the Fresno market for long term holds.  It's a great market to look at and see if it fits your criteria.  Good luck! 

Hey Jeff,

Thanks again for your insights on Fresno! I get the feeling immediate cash flow might be challenging, but creative value-add could unlock long-term appreciation and cash flow potential. Did I catch that right?

Just to give you some background, I'm pretty busy (and loving!) my W2 job, so I'm not looking to jump ship anytime soon. More interested in a passive, long-term hold at this point, but open to exploring all options. As mentioned earlier, the Bay Area has me priced out, so I'm focusing on sub-$500k opportunities.

I'd love to connect offline soon, but want to throw out a couple of questions:

What's the most popular floor plan in Fresno for long-term rentals? I've heard 3B2B come up frequently.

Any advice for navigating the not long (not short either) distance between the Bay Area and Fresno? I'm sure you've helped clients in similar situations.

Thanks again for your time and expertise!

Quote from @Bradley Buxton:

@Michael Sun

Hi Michael, I'm a CA transplant that is now invested in the Reno / Tahoe market. CA does offer some great opportunities to make money. The Reno market has a lower cost to entry and strong appreciation. Tech jobs, positive migration, combined with low property taxes, landlord friendly, and no state income tax make Nevada a solid place to invest. There are also STR and MTR options with the proximity to Lake Tahoe from Reno and the Carson Valley. Happy to connect and share knowledge and my resources in the area.

Hi Bradley, thanks for the response! My family and I are also regulars in Tahoe for ski trips and have had a mix of good and not-so-good experiences with short-term rentals. We've always been curious about the market there, and I'd love to hear your thoughts on areas worth exploring a bit more.

I'm open to connecting privately to chat further, but I also appreciate you sharing insights here for everyone to benefit. Can you help with one or few locations I can take a closer look at?

Being priced out by the bay I am looking at properties below 500K.

Hey Bay Area investors! Newbie here, scoping out the market for my long-term rental property. Any suggestions? Is Tracy, Fresno, Stockton worth some research? Or Reno/Tahoe makes more sense?

Hello fellow real estate investors,

I'm Michael, and I'm thrilled to be part of this community. As a newcomer, I'd like to take a moment to introduce myself and connect with many of you!

I work as a software engineer here in the Bay Area, supporting a family of four – my wife and our two kids. We made a significant move in 2021 by purchasing our current primary residence. Earlier this year, I stumbled upon the BiggerPockets podcasts, and the idea of taking deliberate, steady steps toward financial freedom resonated with me. Like many in the Bay Area, I conducted some analyses and noticed that properties here don't quite yield positive cash flow. Consequently, I'm particularly keen to hear about and learn more regarding OOS investments or any other strategies you've found successful.

I am looking forward to connecting with you! 

Michael