All Forum Posts by: Paul Merriwether

I loved my Sec 8 tenants!!! For 30+ yr's I owned the property at 2621 78th ave in the killing zone. My worst tenants were the ones not on Sec 8. Take for example Covid rent ... Sec 8 you got paid!!! Maybe the tenants portion was late ... not a big deal because it's generally minor $$$. They'll take care of your property because they don't want to get kicked out. I was shocked when my last tenant moved out it was two days after the 1st. Sec 8 paid for the entire mth. 

One last thing ... NEVER SELL Oakland properties!!!! I learned my lesson the hard way. :) 

A $2mil SF SFR at 6% appreciation will be worth approx $3,581,695.39 in 10 yr's. A tenant will pay the note or most of it

depending on how much you pull out. AT 10% appre. it'll be worth $5,187,484.92!!! Talk about easy wealth building!!!

The hardest part ... how do I get my money out with out selling!!!! I'm thinking long term people will be buying Bay Area property through some form of shared equity. Or some land trust deal where they buy/lease the home long term but don't own the land. You're in the money!!! NEVER SELL!!! :) 

After refi of present home ... look to by a home in Union City around $1.25m. Wife is closer to San Jose you aren't as far away from SF. They offer ranch homes, warm weather, large lots. Put an ADU in back yard!!! Now you own two homes & A ADU rental plus renting your present home. Your yearly appreciation should be approx $300 - $400,000 total for both homes!!! That ADU will offset any neg in present home. After a yr ... rent out UC home and buy another with a large lot. Now you own 3 homes & 2 ADU's. It won't be long before you are earning $1m / yr in appreciation!!! NEVER SELL Bay Area property!!! I learned the hard way!!!

I just used loopnet for MF in San Jose. They're CHEAP. A 6 unit building for $1.6m. Another one was 7 units for $2m. near the college. That should be EXCITING!!! :) 

Your wife is CORRECT!!! You would be downsizing and IMO ... no way will a MFH appreciate the same as Bay Area SF. You'll regret it!!! San Jose should have a lot of triplex's as a friend bought a unit back in the 70's his first home. 

This is what I would do ... refi your SF and pull out as much cash as possible. I just refi'ed with First Republic. They had a program 

where we pulled out $215k on a $420k new loan & only paid $27 in closing costs. Our payments stayed the same at 2.5%.

Rent out your present home don't worry about having positive cashflow. Any negative can be deducted from your taxes and your home will continue to appreciate making you more $$$$!!! Take your cash and buy what ever you can afford. Now you have two properties appreciating. If you do buy the duplex and hate it you still have the home.

 Google for a future value calculator. Determine the appreciate rate for your area/home over the last 20, 30 yr's. Calculate what it'll be over the next 10 - 20 yr's and get EXCITED!!! NEVER sell Bay Area property unless you have too!!! It's the Golden Goose that just keeps on giving as my first home in Oakland only me $32,500 back in 73 zero down GI bill.

Google Point & Unisom for links two of several 

>> Great place for a rookie to cut his REI teeth, right?  << 

DREAM ON!!! There is a reason REI professionals don't invest in the Bay Area ... TOO DARN EXPENSIVE!!! Rent control, TAXES!!!!

1) Looking to sell that SFR ... that could be a HUGE mistake long term. Use a future val calculator to determine it's value in 10, 20 or 30 yr's. EX: If your Alameda home is now valued at $1.25 mil, in 10 yr's @ only 6% appreciation it could be worth $2,238,559.62. Redfin says yr over yr was 15%!!! Zillow 22% change. The point is NEVER SELL Bay Area property!!! I know, I've made that mistake with Oakland property in its killing fields!!! Alameda is another matter all together. 

Pull as much cashout as possible. Get the highest rent you (if renting it) can ignore negative cashflow as that is a write off along with depreciation. The homes appreciation is where it's at with Bay Area property. 

If it's cashflow you want look for other areas of the country where you can get good deals with little to no money out of pocket on SFR's. ALWAYS have a strong reserve account just in case ( my mistake).

I just found a guy out of Arizona Pace Morby that is teaching creative financing. He's got a FB community with 30,000 people. Also you can find write up's on Biggerpockets about him.  

For MF use Loopnet or Ten-X to locate properties across the country. 

Best to you & the wife. 

In today's world if you own property you can SELL equity in that property and have no payments up to 30 yr's

with some companies. 

@GARY F. FROM San Jose ADU guidelines >>Can I build an ADU on a property where the single-family house is a rental property? Yes. May I rent the house and ADU to different parties? Yes<< Google San Jose ADU

@Tammy Wadlington Multifamily USDA loans are available. Google USDA loans