All Forum Posts by: Hersh M.

"Homeownership remains out of reach for most renters, as the cost of housing continues to climb.

Across the country, only 45% of renters on average can afford the payments on a median-priced home in their area, according to new report on the state of housing from Harvard University’s Joint Center for Housing Studies. Buying a house is even more out of reach for renters in expensive markets such as the West Coast, the Northeast and Florida. In these parts of the country, as few as 10% of renters could afford the mortgage payments if they bought a home."

http://www.marketwatch.com/story/more-than-half-of...

"Denver led the nation in fastest sales, with nearly half of its new listings going under contract in just six days. Seattle came in second at seven days, and Grand Rapids, Michigan; Portland, Oregon; and Omaha, Nebraska; rounded out the top five.

On the inventory side, Rochester, New York, had the largest decrease in supply of homes for sale, down nearly 36 percent compared with a year ago. Buffalo, New York, (-32 percent), San Jose, California, (-31 percent), and Seattle (-27 percent), also saw significant drops in inventory."

http://www.cnbc.com/2017/06/15/homes-are-selling-a...

@JD Martin@Diane G. Lots of data in this article supporting the slowdown thesis for SFO - https://therealdeal.com/2017/05/28/san-franciscos-...

Also considering that household debt has made a new high (see article link below) surpassing 2008 levels, everyone pray that both unemployment and interest rates stay low so stock market and real estate parties continue. lol. https://www.nytimes.com/2017/05/17/business/dealbook/household-debt-united-states.html 

@Sarah D. This has some info - http://docs.sandiego.gov/municode/MuniCodeChapter1...

BTW, are the 3 spots because the 4 plex is old or because 4th unit was added later? I assume there must also be street parallel parking apart from the 3 private spots but I know PB parking can be crazy.  

@Nick Bleser Yes depending on the downturn, the ability of your tenants to pay you the rents would change. Locations that are usually dependent on single job industry like automotive, oil, etc have historically seen greater impact. Thats why smart experienced investors recommend you have a reserve fund for each of your properties to help you through vacancies and evictions.  

@Brian Burke Have you reduced your cap rate expectations compared to few years ago or even last year? I assume the main reason to get outbid is because others are ready to buy at lower cap rates. 

@Account Closed Wasn't there any pre-approval involved before you made an offer? Also did you check with other lenders? Also look into owner financing. I checked the property online and rents seem to be 500-700 per unit, thus exceeding 2% rule, which is very rare in good areas I think. 

@Nghi LeWhat cap rate are you buying this for? For long term hold or just flip it after improved cashflow? 

@Michelle Green Rarely see a gas station related post on here :). Dont you want to involve a commercial lawyer? 

Also out of curiosity, how do the numbers look like on a gas station deal? Are you buying for cash flow? 

@Ryan H. Joseph Head over to county assessor's office and I am sure when you mention about lack of maintenance, they will help you find the owner. Also check with other neighbors. 

Out of curiosity, what neighborhood is this? Class B or C or something else?