All Forum Posts by: Amit M.

i'd think twice about raising the rent on the tenants so soon, especially if current owner raised them in the last 6 months. You don't want to begin your relationship with your tenants on the wrong foot, nor be tasked with finding replacement tenants right out the gate.

From my perspective, as an investor in SF where cashflow is even weaker, your numbers look ok, IF: 1- this is a decent area with solid tenants that are responsible and easy to manage and 2- if it's realistic to expect good appreciation for your bldg. if you answer no to one of those, you may be spinning your wheels, i.e. A whole lotta risk and headache for little in return.

My 2 cents.

@Agha Abbas investing in SF usually requires substantial Capital. Most wealthy folks like to buy high rise condos for all or most cash and sit on them (the wealthier ones don't even bother to rent them out ;) you have good security in a high rise, which is an advantage for a remote investor.

Otherwise, be careful if you are taking on a more active project, or one with existing tenants. That's how we make the big bucks though- an avtive project, dealing/buying out low rent tenants, fancy renovations, and insanely high rents at the end of it all, as well as substantial equity appreciation are the rewards. But for that you a) gotta be here and b) know the market and working environment (very tricky at best). Not for the faint of heart.

@Roman Rosario good article on SF. As an SF residential LL it will be interesting to see if rents drop in the next 2-3 years as a result of new construction. I have my doubts because I think a lot of the upcoming projects will shift towards condos. These big guys usually like getting their money put. But, there are several large projects that are rental only- the monstrosity at mid market and a few micro unit bldgs (270-450 sq ft units at insane rents IMO) come to mind.

Do you have any more info on this? Cheers.

j martin- appreciate your perspective on Richmond. I'll try to make that meeting, and yes, let's talk. Cheers.

@jmartin I invest in SF. Be curious to hear from you about the east bay market. Cheers.

I'm vacationing now in the sunny Mediterranean Sea (it's 80 degrees and perfect beaches btw) but returning 11/15. So if I break my jet lag I'd like to come by.

Any idea how bad parking is over there?

frisco is still muy caliente, and I suspect the better areas of Silicon Valley/peninsula are as well.

@Ann Watkins the Internet attracts a lot of wannabes, and it's an easy place for some people to play out their RE investing fantasies, so as a service provider beware :)

At first you sounded like a troll, but I gotta admit it was kinda funny too ;)

Wonder how many feathers you will ruffle, but OTOH I understand your frustrations too. This should be a good popcorn thread, and god knows we need a few of those!

@David Krulac

@David Krulac

@David Krulac

@J Scott your comments are interesting. Can you share some details on what deals went bad, like city, prop type, price? 2002 was a good time to buy (and refi 1 year later went rates hit bottom). Of course 2008 was top of the market before big crash.

People make, and loose, money in all kinds of RE markets. But my experience has been that most who buy in the Bay Area already have a certain amount of cash to put down, so they can manage the cash flow situation. And in my case, I always buy props were I can put them to higher and better use, thus creating value by development and renovation. If you're buying retail and holding, you're more susceptible to market fluctuations. And of course there are significant variables within the Bay Area; Vallejo is a totally different story than the peninsula or SF.