All Forum Posts by: Amit M.

Yeah as long as you have the financial reserves to both invest in the unit *and* have it vacant for the time required to do the work. I’m also doing some capital improvements during this sh!tty rental market. It will pay off in the long run, and especially worthwhile if you plan to hold the property for the long term. 
hope that helps!

I bet that we will have high inflation in the next several years, do to the increased money supply. That will bode well for RE investors that: 1- have fixed rate loans 2- have some leverage (debt). Basically everything will go up (incl. salaries, your rents, your property values, etc.) But because you have RE assets with the big costs fixed, you’ll benefit big time. And the difference between your new inflated rent profit vs. your (now also inflated) incidental expenses will be your expanded financial profit. 

Yes rents are In general softening In SF, but there is a lot of BS hype by the news media too (this article isn’t nearly as bad as some other though.) Basically rents are dropping the most in over rated class A bldgs full of “luxury” amenities. Class B units, in my case are on average down about 5%, so not too bad. 

Also, the “exodus” is overstated. It will be short lived imo. People will start comIng back early next year, so this is temporary.

SF is still an awesome city, and there are a ton of employment and entrepreneurial opportunities here. I’m not sweating it :)

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Hard to say exactly. 

1- How are other commercial properties WRT price reductions, etc. are closing in SF recently?
2- if it’s vacant, that is a bigger problem now than 3 months ago. 
3- ultimately it depends on how desperate sellers are, and how much of a “deal” the buyer demands. The two shall, or shall not meet. You just have to go through the negotiation process and find out. 

Keep us posted :)

I think the recent work from home hysteria is a fallacy. Conceptually, working from home has NOTHING to due with covid 19. If it’s so awesome, why wasn’t it adapted en mass years ago? Yahoo a couple years back even rolled back WFH. It’s a trend that will have some effect yes, but it’s being way over hyped. For two main reasons: 1- I’m not sure it will really provide long term benefits to the tech firms jumping on the bandwagon now 2- I’m not sure how many employees will ultimately like it, after the forced-Covid-novelty wears off. i.e. it’s hard to get all those cool tech co benefits like free gourmet food, gyms, awesome office spaces, etc., etc. piped over a zoom meeting ;)

As for WFH effect on the Bay Area, keep in mind that when people work from home, their direct environment becomes MORE, not less important. Would you rather be home based in the Bay Area with tons of things to do nearby, good weather, lots of nature, etc. or someplace with little culture, extreme temperatures, bland immediate environment, etc., etc. There is a reason many people, who can afford to do so, aspire to live in CA and especially the Bay Area. Working from home isn’t going to radically change those aspirations.

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This is prime blue chip real estate. You should keep it! Long term it will = gold for you. (It may be counterintuitive for some folks...but this is why there are so many multimillionaires in the Bay Area :)

For now, rent it out as furnished rental mid term to one year. Then decide if you want to go back to short term, or just continue as long term rental, depends on market demand. 

Oh, and get rid of that 7 year arm nonsense. Lock in a 30 year fixed rate so you are not subject to future interest rate fluctuations. 

Ask yourself this: how many people do you know who sold prime Bay Area real estate 10-15 years ago (who could have worked to keep it) and think that was a good idea today?  Crickets 🦗 🦗🦗. 

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smuggling 

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