All Forum Posts by: Amit M.

perry- that's exactly right, and how I succeeded in SF with my investments. It's so different than the rest of the country. Do you own investments in the city?

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To the OP- cash flow wise your deal looks good. Check with local owners who are knowledgeable about expenses specific to your location. Another plus is that the property is only 9 years old.

BUT, the big question is: what kind of area and neighborhood is it in? Is it improving in quality, or at least stable? Is there potential for appreciation? Making $9k per year is nice, until a roof needs replacing, appliances go out, or you get one nasty tenant that doesn't pay rent plus damages the property. Good areas that appreciate provide a long term buffer to that.

hola all you Bay Area peeps!

I invest only in San Francisco, but was wondering if any of you looked at 2-4 units in the Bay Area. I know the cashflow is much tougher here, but the appreciation on any decent quality property/location is priceless! Prices are even higher here in the city, but i have gotten several properties to work out with renovations, positioning for higher and best use, tenant tweeking, etc. So let me know if you looked at things locally and what you thought, as out of state investing is not for me. Cheers.

two words: think quality.

You are fortunate to have cash, which gives you options. Buy in good hoods- the kind you would live in. Even if the cashflow is not as good/will needs 20-30% down for a return, etc. Why? Cause good neighborhoods tend to appreciate.

Many here get all excited about $35k homes that cashflow +$200, but guess what? Those deals tend to be precarious. Stable homes in GOOD neighborhoods will usually cost north of $200k (I'm assuming for most of USA; on the coasts, and here in San Francisco it's triple that.)

We live in a society now that is highly fragmented into winners and losers, unfortunately. Be careful not to buy RE that has no future appreciation potential, and will only kill you in maintenance costs and potentially problematic tenants. I know many investors play that game and can do very well. I'm commenting on the fact that with real cash you can avoid that, if you choose to. Cheers.

do you have the property listed on the mls? If the market is hot there now you should get some normal offers- where people get their own loans. Rates are still good so I'd expect someone to want to lock in a low 30 year fixed on this.

You have to ask yourself, why can't this guy get his own loan? Can't qualify? Then he will not be able to perform if the bank calls the loan, leading to a big headache for you.

Precarious situation. I say pass.

Jim- I'd think twice about getting out of your Venice prop. That area is gentrifying quickly- your chances of gaining equity appreciation in the next 1-2 years is extremely high. As a Matt mentioned, those google engineers do wonders for property values! (I know, we have the same phenomena in San Francisco.)

I'm confused about your numbers though. You purchased for $900k in 2010? And its worth about $1.2 now? (Your $300k appreciation gain.) So don't you have equity (unless you already pulled it out)?

hi everyone :)

I have recently gotten active again- some banks are now actually lending to investors again, and I am refying like mad to lock in low 30 year fixed rates on my long term buy and hold/bread and butter properties. I will soon be able to pull out ~ $500k in a HELOC, and plan to buy 1-2 more 2-4 unit bldgs. In San Francisco.

I invest exclusively in the city of San Francisco, and interested in interacting with other SF city investors. The next couple of years are going to be an interesting ride, as the market is heading up, as well as interest rates. It would be nice to get into another property or two before potential inflation hits, that's for sure. Cheers,