All Forum Posts by: Sateesh Kumar

Quote from @Axel Meierhoefer:

@Sateesh Kumar I have worked for clients in Oakland and Berkeley and lived near by for three years. I always avoided Oakland and a 12 plex for 2.2 mil is probably a really scary area.

It all depends on what your goals are but if I were I your shows I would buy probably 6+ SFR properties for cash right now, get about $8K in income/month, and when reates come down, I would put nonrecourse loans on them, use the remaining $400K and get another 3 SFR units. With 9 properties, 4 paid and 5 financed, you could clear a bunch of cash flow, pay for rent in SFo area or almost and if you buy something in SFO, you could do the home buyer jumbo loan thing and pay the mortgage with the passive income your tenants give you each month.

Keep in mind that a 12plex is a commercial real estate property that does not apply for traditional residential financing and the only way to increase value is by improving the rent roll. I would be very careful about that in Oakland.

One indication, just to give you something to ponder:

When I worked in Oakland in 202 they had the Warriors (basketball), A's (baseball), and Raiders (NFL football). For 20 years the teams tried to get new stadiums but the city refused.

The Raiders are in Vegas, The Warriors are in SFO, and the A's will be in Vegas soon as well. THat's not a place I suspect will appreciate much. The Bay area has also been the one area where property values are declining the last few years and work from home has driven a lot of people out of the overpriced Bay area markets.

I would work there, rent, and invest in much better-paying locations.

Happy to help you if you are interested. 

Thanks a lot Axel, it makes sense Oakland definitely seems risky and scary.Someone brought to my attention a 12 plex in Oakland area with a possibility of 20k in rents and at first it seemed interesting. Do you suggest buying 6+ SFRs out of of state away from California, I would like to connect and get more insights.

Hello,

A relocation to CA bay area seems imminent due to job and therefore selling an owner occupied triplex also seems imminent. I was initially considering selling my triplex and buying a single family in the bay area for the sake of aggressive future  appreciation while also giving a comfortable living with family but being a single W2 earner the numbers are still not making any sense besides future appreciation is highly speculative.

So I was thinking if it would it make sense to buy a 12 plex in places like Oakland for around 2.2 mil using the sales proceeds of the triplex perhaps do a 1031 exchange. I am expecting to sell the triplex for around 1.2 - 1.3 mil and there is about 500k in loan balance so there is up to 800k in equity. Appreciate your inputs

Thanks

Hello

i have a traditional 401k from old employer it has little over 100k, I would like to move it to an SDIRA or Solo 401k to make some alternative investments. I also have some passive losses for this year due to a syndication investment I made this year, can I use this passive loss to my advantage to convert my traditional 401k to a Roth Solo 401k or Roth IRA with minimal to no tax hit? Appreciate your inputs.

Thanks

Hello

I own a small multi family with 500k mortgage on a very low interest rate @2.5% it also has over 500k in equity. I need to relocate out of state and very confused if I should sell or tap on to it's equity using HELOC and reinvest in other properties although I don't have any solid plans on where to reinvest as yet. I was briefly toying with the idea of investing in SF in Midwest for cashflow or a bigger multi family up to 2 mil with great cashflow and appreciation. I am relocating to CA bay area and it's not making sense buying a SF there

I need to make a quick decision whether to sell or keep, appreciate your inputs.

Thanks

Hello,

The new insurance company I was working with dropped the insurance because of clearance between buildings, I am not too sure what that means but I guess it means the distance between adjacent buildings is small.The property is situated in a densely populated area apparently the homes will be right next to each other like in NYC. How to best handle this situation? Appreciate your inputs 

Thanks

Thanks for all your inputs and I get it reach out to a professional if you are not already one. I found a sellers agent who seems to be rock solid as deals with much larger multifamily and who also sold a property within my area within a week's time and indicated he may sell without even listing on MLS based on his existing Clienteles interest and likely will play both sellers and buyers agent and asking for a commitment to sign a contract to sell only through him, before listing through him I would like to make sure my timing is right, as any dip in interest rates can further increase the price, is it a good idea to wait a little longer at least until summer? Also The tenant is moving out end of December and I am little confused if I should be placing a tenant six months before selling?

Also I forgot to mention I am getting calls from third party brokers asking me if I am interested to sell for their clients looking for similar homes. I have a certain price target in mind based on sale of similar homes in the neighborhood would it be a good idea to indicate to them that I might consider selling at a particular price point and see where it goes?

Quote from @Jonathan Minerick:

You can do a flat fee MLS listing ($100-$300), which gives you the marketing exposure of the MLS and all the major portals (Zillow, Redfin, Realtor.com, homes.com, etc) without paying the big commission to a listing agent. You can still offer a commission to buyer agents to incentivize them to bring a buyer.

Thank You! If I choose to go FSBO are there any third party companies who can get me good photographs?

Quote from @Erik Estrada:

Quote from @Sateesh Kumar:

Hello

i have a general question ,in the current market conditions is it a good idea to sell primary residence without the help of a sellers agent ,go fsbo to save some on commission fees? Looking forward for answers from experienced members here 

Thanks

 I think your biggest hurdle will be finding qualified buyers. Unless you work with a solid lender that will help you cross qualify any potential buyer. But even then, many people will get cold feet in a transaction and may not perform. This is where a solid sales agent will help you out. When you work with someone that does this on a daily basis, there won't be any surprises. If you do it on your own to save on a commission, you might struggle to hold the transaction together. There are many variables and emotions involved in purchasing a home. 

When you work with a solid Realtor, they will ask you all the right questions to get you the most realistic price, marketing strategy, and take charge of a smooth closing. 

 Thanks this is very helpful. Just one more question I have Tenant is vacating end of December ,is it a good idea to list for sale in January or would it make more sense to wait until summer?

Hello

i have a general question ,in the current market conditions is it a good idea to sell primary residence without the help of a sellers agent ,go fsbo to save some on commission fees? Looking forward for answers from experienced members here 

Thanks