All Forum Posts by: Sean Oh

Hey BP community, 

I'm considering purchasing a duplex in the Oakland, CA area. The duplex is a fairly nice 3b/3ba within walk/bike distance to Bay Area Rapid Transit (BART) with tenants on a month to month lease at pretty much market rate (also they have pets if that means anything at all re: stability). 

There is a coverted shed ADU in the back that definitely won't pass muster and if an inspector had to come for any reason, it would have to be taken down. It is very nice on the inside and the plan would be that I live in it while collecting rent from the two units in the duplex.

Questions / Notes:

1. - Will I have any issues getting and closing with a conventional loan here? I would be owner occupying, but obviously the ADU is not technically a "liveable" space. The selling realtor mentioned that they had to remove the "kitchen" cabinets to convince the lender that it was a non conforming storage unit.
2. - What sort of risk am I taking by taking on this property? Risk of having to tear it down, risk of getting loan due(?), ....? 
   - If I want to make any improvements / renovations to the property and have to get permits, could those trigger inspections then a tear down? 

Any input/advice would be super appreciated!

Best,
Sean

Thanks so much for the replies Will and Theresa - makes a whole lot of sense and it’s definitely informing my decision making - Cheers. 

Hi everyone - would love some feedback / insight from those who have house hacked a SFH successfully before.

I'm looking to buy my first place (in Oakland, CA - Fruitvale specifically) and wanted to rent out some rooms in the place I'm looking at. It's walk / bike-able) to public transportation (Bay Area Rapid Transit). Very blue collar area, but not too bad in my opinion.

The place itself is pretty solid, but like mentioned in the description, it's not remodeled or shiny at all. Carpet in every room, mostly shades of brown for all interior, no double pane windows, etc. 

This doesn't bother me at all, but will this affect:

1. 1) My ability to get potential renters at all? (especially with covid in play)
2. 2) If I do attract renters, will they all be of lower quality? I'm hoping for young professionals like myself to occupy the rooms, but I'm wondering if that's unrealistic. 

Much appreciated -