All Forum Posts by: Patrick Mallen

Hey Tyler, the catch with buying land in the Bay Area with the intention of building a home on it is time. It may take as long as two years depending on the approval process with the city and construction to build a single family home in the Bay Area. Also cost of materials has risen drastically over the last 6 months so it may not make sense when you include that factor. Typically in the Bay Area it costs about $350-$500 a square foot to build from the ground up depending on materials and finishings. 

Hey James, welcome to bigger pockets. By a investment group to learn from what do you exactly mean? Someone to teach you about investing in the Bay Area or like an online group like the BiggerPockets community?

James, if the multi family property is 4 units or under you can use a conventional loan. Meaning that you would be able to secure the loan with a 20% down payment. Please feel free to message me and I can send you some lenders contact information that would be able to help you. 

Ashish, 

You are not able to split commission with another agent if you are not a realtor yourself in California. Please feel free to reach out with any questions regarding the Bay Area housing market. 

We are in a hard market to find cash flowing properties and a especially hard market for house hacking where the rent you collect covers all expenses. That being said if your out of pocket costs are less what you would pay in rent for the same place it would make sense. You are also building equity over time, have tax advantages, and will most likely be able to increase rent to cover the expenses over time. 

Hi Nuo, 

I do not think that it would be smart to have negative cash flow even it is just for a period of time. You also have to think about maintenance and other expenses as well. It would make sense if you are living in one of the units and renting out the others, and their rent covers most of the mortgage, leaving you with expenses that would be less than market rent in the area you are buying in. If you have any questions feel free to message me. 

Best, 

Patrick 

Hi Suntron, 

There are deals here in the Bay Area. You just need to look for them. You would be surprised at the number of cash flowing properties you may come by. What specific areas are you looking to invest in?