All Forum Posts by: Paul Merriwether

Malibu homes burned right next to the ocean!!! As they did in Hawaii.
Water isn't the issue. It's building materials. Not willing to fortify homes to prevent catching on fire. Recent fires on east coast in NY. It's not just CA. It's global!

2 Votes

>> Nothing to do with water everything to do with building in fire prone <<

If we're going to build in fire prone areas build with light gage steel!!!

Cinder blocks. Any material that will not catch fire. Aluminum roofs.

Mother nature has become denser & denser over time. Plant plants that are resistant to fires. kill the tall grasses.

1 Vote

A HOT Latina image in the ad. :)

1 Vote

Go to udemy(dot)com and purchase their TC course It was under $20 when I got it for my daughter.

1 Vote

Fort Worth, Texas

Quote from @Axel Meierhoefer:

Quote from @Sangam Baligar:

@Sateesh Kumar, I second what Alex mentioned about being careful of shady areas in Oakland. And there are OK to really good parts of Oakland that provide you with a good CoC and Cap rate. I own triplexes in Oakland and have been doing great. All you need is a good realtor(s) who knows the East Bay well and every ok/good pockets of East Bay. Off-market deals with a little TLC are the way to go to hit the higher CoC.
Selling your Triplex-- I would recommend doing an a1031 it's a bunch of money for you and I'm certain that you will be able to find a property in East Bay ( Hayward, Oakland, Berkley, etc) to match what you're looking in terms of returns/cashflow. Happy to connect offline.

I agree @Sateesh Kumar. Just can't imagine a 12-plex for 2.2 mil in a good area

@Axel Meierhoefer here is a 13 unit property at 3541 Dimond Ave asking $2m. in an excellent area next to Dimond Park in Fruitvale area.

According to realtor.com, the median price of a home in Fruitvale, Oakland, CA is $684,000. The median sale price per square foot is $471, which is a 7% decrease from the previous year.

Alex. I live in Oakland's Maxwell Park, near Mills College. Our prices have been up & down. However I only paid $64,500 SFR in 1978 and my value has been as high as $1.2m. Yes Oakland is a tough city yet in terms of property appreciation far higher than many CA cities.

0 Votes

A 4 plex is for sale with a cap of 6%. I'm thinking OK that is what it has been for that area always. Yet with rates higher and banks paying 5% ON CD'S why take the risk with such a low cap? Shouldn't Caps rise to say 10 - 12% to get the very same returns as before?

1 Vote

@Becca F. Source in terms of time BiggerPockets https://www.biggerpockets.com/blog/defining-asset-classholis...

All I'm saying is when defining something it should easily be applied across those items being referenced.

So we understand what is being talked about. Classes for commercial property makes sense. Not for homes IMO. Class in terms of age makes sense. Value would make sense. All homes in your SF area aren't the same nor near like your out of state home.

0 Votes

Quote from @Becca F.:

Quote from @Carlos Ptriawan:

Quote from @Raju Balakrishnan:

Quote from @Jay Hinrichs:

I dont see much of the SF penninsula being a target for landlords these days especially with SFRs MF sure plex's sure.. but SFR are so expensive I really wonder how many folks buy those with the intentions of renting them.

You also skipped the North bay.. I can see though flipping in the expensive markets.. its alive and well just numbers that would make most folks eyes water in the rest of the country.

IE paying 1.5 for a fixer putting 300k into it or 500k then selling for 2.5 .. takes a lot of capital but I know its still alive and well .

Yes! it is hard to make sense by rents. I has been a appreciation play always. Buy for 1.5 MM, Pay 25% down, loose $500 every month. But expect to get 7%-10% organic appreciation every year to get a CoC of 25-30%. Has been working well from 2008 onwards till date, but you should have capital and should have alternate income to support the property expenses. Bay area could support that as most SFR landlords here are high earning techies.

Here's some playbook :

- Typical DSCR 0.9-1.0 rent play: Antioch/Concord
- Househacking free mortgage area : Hayward,San Leando,San Lorenzo
- Fix and live in the flip: Hayward, Union City, San Jose, Santa Clara
- Buy those house and wait for large appreciation: All Peninsula,San Jose,Santa Clara,Cupertino
- Keep moving every 24 months play: San Jose LOL
- buy those home with ADU play: Fairview, Hayward Hills, Oakland Hills, Berkeley.

The creativity is endless in this market.

Carlos, that's a great analysis but I'm not sure how you got DSCR 0.9-1.0 in Antioch/Concord? Is that buying distressed and doing a rehab or including move in ready?

There's no way in the Midwest or parts of the South (maybe Texas?) to be -$500 a month and go for an appreciation play like here. My nice suburban house with good schools in Indy went from $140,000 in 2013 to $285,000 in 2023 (range is $277,000-$300,000 if there was a multiple offer situation). I have a low interest rate, considered selling all 3 Indy homes to 1031 to buy in Sacramento ($500,000 range) for California appreciation but I'm not going to buy anymore at 7% interest rates. It's an uphill battle.

I agree the Bay Area is a niche market. As people move further out would other areas of NorCal become like the Bay Area? Would like to hear more from investors in other areas: Sacramento, Central Valley, Stockton.

Bay Area niche market? NO WAY JOSE! The Bay Area is the driver of all No.Cal values!
people commute 60 -90 minutes daily for a job in the Bay Area. What are those values in the areas they live $500k & up! Why are they that high? Because people want to live in N.CA. The job market is here in the Bay Area. Yet we no longer have viable lots in which to build homes. Thus the demand for land has been push in ALL directions with Oakland as it's hub on the East side. Try and find an affordable lot in Manteca 65 miles from Oakland. Or Sacramento 90 miles away. Cost to build $350 - $700/sqft or more.

Those distant places now see themselves as the BAY AREA! Northern CA. is the Bay Area!

1 Vote

San Francisco, California

@Becca F. Per BiggerPockets
>>

What Does “Class” Really Mean in Real Estate?

Many investors define the asset class purely by the age of the home:

Class A: Homes built in the last 10 years
Class B: Homes built in the last 10-20 years
Class C: Homes built in the last 20-30 years
Class D: Homes built in the last 30 years <<

How old is you SF property? I'm betting it is older than 30 yr's.
Are there any drug dealers near the property? Any home that need repair?
Any foreclosures, pre-foreclosures?

Do residents feel safe to walk the streets? ( It's SF remember)

Macy's is leaving, Nordstrom's has left many other stores leaving.
My thoughts, San Francisco is a CLASS C city, Maybe closer to Class D.

The City of Oakland is now clearly Class D. Residents in the hills do not
feel safe and they're trying to oust Alameda DA. Plus fire issues & loss or soaring property insurance, tree hazards, constant loss of electricity.
Do you see the problem in trying to classify cities & SFR areas?
Class works for buildings, commercial properties but not IMO for SFR.

0 Votes

@Becca F. Look at these IL & MO homes on this list being sold. Scroll to the bottom and view homes that have sold. Then Zillow those homes to see what they recently were listed for. This will give you a whole different perspective. The homes are being sold contract for Deed, no credit checks.

bit (dot ly)/49T2RSM

0 Votes

All Forum Posts by: Paul Merriwether

Paul Merriwether has started 2 posts and replied 132 times.

Post: Failed Leadership is why California is on fire.

Post: Failed Leadership is why California is on fire.

Post: Jerryll Noorden's system

Post: Transaction Coordinator question

Post: Sell triplex and buy 12 plex in Oakland good idea?

Post: Current Cap Rates on Multifamily

Post: New to real estate investment

Post: Bay Area and NorCal Investors - thoughts on Class A, B, C and D areas

Post: New to real estate investment

What Does “Class” Really Mean in Real Estate?

Post: New to real estate investment