All Forum Posts by: Osazee Edebiri

I found a 4br home in Grass Valley, CA where seller is willing to do financing w 100k down. Asking price $450k. Pest report shows termites and porch needs replacing or taking out, still assessing real costs of this.  2 car garage can be turned into a separate unit later. Commercial/Residential zoning. 

There are a shortage of LTRs for families so demand is guaranteed, monthly rent ~2.6-2.9k. Number of airbnbs increased and daily occupancy rates decreased in last few years so feels more risky to try Airbnb route.

My numbers show monthly expenses at $1650-2050/mo if I can get a 4% seller finance rate and price of 350-400k. Plus property management costs and repairs. That’s best case scenario $1k cash flow per month and more likely $400.

This would be my first true investment property and would require all the investment capital I’ve acquired to date- I’m feeling nervous about it given predictions for tepid home value appreciation in coming years. Is it worth the opportunity cost of putting that $100k+ in the market for a few years? 

Spinning my wheels,

Rascal

Ps I live in Oakland CA and planning to move to grass valley in a few years, where I could then do local management. 

Thanks for the response @Dan H.! Appreciate your time. I dont believe a 4 unit with an ADU is going to be looked at as a 5 unit. I was under the assumption that it would be considered a non-commercial residential 4 unit with an ADU? Interesting, I mean honestly the Cap rate valuation is what I want but I don't think that would be the case. I've called a couple appraisers to discuss and i've been getting mixed responses. IIthink about it like this... A house with an ADU does not become a duplex, it's a house with an ADU.

Hello,

I am looking for some advice, as well as some potential people to work with.  I am currently living in the bay area of California and have been searching for a primary residence over the past 8 months with no luck.  I am planning on switching my strategy for the next year or two and I would like to find a good realtor company that can help reach my goals.  

Because the bay area is so competitive I am interested in investing out of the area, preferably in Southern California where I am originally from (Claremont, Pomona, Upland), however, I am also very open to investing out of state as well. I will do this while I continue to rent. My goal is to use a portion of what would have been my down payment (~$300 K) to invest in SFR or Multi-family to gain a monthly cashflow of ~$10 K. With this I will buy a house next year and use this monthly income to pay for my mortgage payments. I expect less than $300 K would be sufficient to gain this goal of $10 K / month. Would you agree with this?

I am looking for a real estate company that does not just look to sell me a house, but is also able to connect me with property mangers, contractors, lenders, etc in order to "build my team". I am not sure if it would be better to make multiple small purchases of SFR vs. one or two large purchase of multi-family to reach my goal of $10k / mo. I would appreciate any connections and advice.

Thank you,

Ben  Geleris

Hey BiggerPockets!

I'm a first time real estate investor and interested in househacking a quad in Oakland. I am throwing a couple ideas around in my head and hoping you could guide me!

Is it possible with Oakland regulations to turn a quad into a triplex? I would prefer to live in a 4br 2ba than one of 4 2br 1ba. 

Is it possible to convert a quad into condos? I am considering going into this with my partner who would only be able to pay 1/4th the mortgage. If we could designate one of the four units as being theirs, it could make for an easy split if we were to separate instead of having to sell the property or me having to buy them out. 

Interested in hearing your thoughts. Thanks :)

Hi BP Community,

My name is Karim, and I'm currently a college student in Boston. Real Estate investing has captured my interest, and I'm excited to start my journey in this field as soon as possible. I've already discussed this passion with my family, and we've come up with an exciting possible opportunity.

Here's the plan: My sister lives and works in California, specifically around Oakland or Martinez, but she's presently back home in Senegal (our country of origin) for the next few months. She'll be returning to California in October for a year, and during our discussions, we thought about the possibility of purchasing a property for her to live in initially. Once she moves out, the idea is to turn it into our first rental property. However, we are well aware of the sky-high property prices in California, and we currently have approximately $20,000 saved up for a down payment.

Considering the current market conditions, we would greatly appreciate any tips, advice, or insights that you kind folks may have regarding the feasibility of our plan. Your valuable input could make a world of difference for us and would be greatly appreciated.

Thank you!

Holy smokes! That’s something you won’t forget. I’ve never experienced an earthquake yet.. sad for all those people that perished and got hurt. 

Thanks for the replies. I'll add a bit more detail about our situation...

My mom is widowed and lives in south San Jose with my 13-year-old sister. My wife is in a starting position at Apple, and she has a strong chance of being promoted within the next year or two. I am the head of sales at a medical device development company. Since we are young, our salaries are low by bay area standards, but we both have good care trajectory and make a combined $155k gross, plus commission bonuses. We rent the basement apartment for $1,000 a month.

Long story short - we're not planning to jump ship on our careers right away. We anticipate real estate investment being a side hustle for the first few years, unless we can instantly make significantly more than our current income. Leaving town is also a tough option to consider because, not only would it force us to find new jobs, but it would separate us from family that needs us around.

New investor here. As I try to explore Seller Financing, I’ve come across 2 situations. 

2129 Clinton Ave, Alameda is a 5 unit building asking $2,350,000. Seller Financing available at 3.5% over 9 years left on current term & they want 41% down.

3868 Maybelle Ave, Oakland is a 4plex asking $1,460,000 at 5.25% over 5 years(agent says this is negotiable) and they also want 40% down to clear the first. 

I’m new on this seller finance area and called to find out what the terms were on each. The Alameda agent was very nice and professional as I explained I was new to this and had questions. He immediately sent me all the info I asked and said if the buyer that they current had in escrow didn’t get approved, he would call me asap.

The Oakland agent was rather condescending and told me that if I didn’t “have $650k to put down then I shouldn’t bank on getting any deals of this size done.” I explained to her as nicely as possible that I have had many conversations with private lenders and hard money lenders and boom 💥 she cut me off and scoffed at me that “neither of those wants to take a second position so I don’t think you know what you’re talking about!” I didn’t get upset I simply replied that I wasn’t so sure of that. To this, she got a little condescending so I I told her to have a nice evening and that I’d probably meet her at some point in the future and looked forward to learning more. (I’m also an agent in Oakland).

When a seller is asking for 40% down, is this because they want to take care of the first lien? 

Am I wrong for calling and trying to learn on the fly? 

Purchased a home in Oakland in late 2022 which had a non-permitted garage-converted detached ADU in the backyard. All the construction for the ADU was unpermitted/undocumented and the previous owners were contractors themselves.

I want to apply to the Oakland Amnesty program, but one of the requirements is that they need proof of the establishment/construction and also occupation of the ADU prior to 2021.

Since I just bought the home in late 2022, what is the best way to go about the proof of establishment and occupancy requirement? I'm not even sure what type of evidence the city needs for amnesty, since the whole garage conversion was done unpermitted/undocumented by the previous homeowners. I believe unpermitted ADU's is extremely common in Oakland.

Does anyone have experience with the Oakland ADU Amnesty program? I'd love to get details on how easy the process was, as I'm concerned about the city forcing me to get rid of the whole unit itself.