All Forum Posts by: Shane Pearlman

That is a fairly nice area. I would own there (looking to sell?) We've had an awesome run up since 2013. Whether that continues or plateaus requires a crystal ball. I'm thinking it chills for a while, drops when the economy turns and then does another typical surge in 7 years. The fundamental question is how much equity do you have in it and what are your alternate opportunity for those funds. 

Right now, the property is cash positive and in a historically strong market with multiple economic drivers (tourism, agriculture, university, action sports industry, silicon valley...). If you were looking for principal preservation, its a good bet. It even sounds like there might be upside from improvements.

If you are looking for cash on cash return, while normally I'd say this isn't the right place, your FHA loan managed to create a pretty solid deal. I'm not convinced you would do that much better in the midwest all said and done.

Really, the only risk I see is an earthquake. Is the property tied to the foundation and in good shape? If so, you can accept the risk like most of us and get insurance if it keeps you up at night. If not, I'd fix the property or flip it.

btw - since you are newer here, when people help out it is nice to vote it up and say thanks if the time they spent is helpful.

What is the concern specifically Roald?

For a local property (assuming it is a duplex?), it is performing reasonable well. I have three duplexes in the area.

The down payment is absurdly low, but power to the FHA buyer. The fact that it still breaks even (assuming your NOI includes real things like vacancy, turnover, improvements...) gives you about $10,400 per year in cashflow, which is a 41.6% annual cash on cash return. That doesn't even include mortgage paydown or future appreciation. Sounds like a win to me?

If the issue is tenant base or location, I can vibe with that. I traded a rental in live oak two years ago and have not looked back. Turns out, even on a single street, one side can be awesome and the other a nightmare.

Hey Kadidia,

I have been involved in 14 transactions with Paul Cuccia (https://www.coldwellbanker.com/agents/Paul-Cuccia-95003) and he continues to offer solid and enthusiastic service. He hustles, is a partner and really cares. If you know what you want, he is fantastic.

It is interesting to consider the rate of rent change as an indicator of inflation or appreciation if you are a MF investor. Looking at the rate change in SF, the last couple of years has been growing at an insane rate. Rents are going up 10-15% annually for the last 3 years. How much longer can it hold before it corrects? Hard to say. It is definitely driving a demographic change to the community. Will it correct below 0% (will rents actually drop), they haven't in 36 years, but it might 

Source: https://medium.com/@mccannatron/1979-to-2015-average-rent-in-san-francisco-33aaea22de0e

A GRM map would be far easier to pull off as you don't have to factor in expenses. It would still serve the purposes and be much easier to gather using publicly available data like zillow. I'd be curious to see how big a difference really exists between West Seattle and further south like Burien

Good point on the date, it is Friday the 11th. Sadly, it will not let me edit. 

That sounds like an awesome anniversary to celebrate.

Please RSVP at http://www.meetup.com/Santa-Cruz-Real-Estate-Investor-Meetup/events/224627459/

Join us in Santa Cruz for the next quarterly real estate social meetup of 2015! We'll talk about some of the local and out of area deals that people have been doing. The last event circled around the nuance of apartment loans, oh lord bed bugs!, the pros and cons of section 8 and using wholesalers. We also wandered through a lot of classy drinks.

I have not picked a venue yet so if anyone has a preference, I'm listening!

When: Friday, September 19, 2015, 7:00pm

Where: TBD

Please support the local business by spending some money and tipping for the great service we receive! They have both food and nice drinks. I usually pick the outdoors this time of year, so bring a jacket for after the sun sets (although September is usually warm as long as we are above the fog).

Remember, Friday evening traffic can get a touch thick so give yourself some time. I'll hang there till it ends (about 10pm - 2am depending on how conversation flows).

Can't wait to see you all, reply if you want to come.

- Shane

People typically come from: Santa Cruz, Felton, Boulder Creek, Scotts Valley, Live Oak, Capitola, Soquel, Aptos, Watsonville, Freedom, Pajaro, Seaside, Castroville, Salinas, Gilroy, Marina, Aromas, Monterey, Carmel, Los Gatos, Campbell, Saratoga, San Jose.

Hi Kadidia,

It is a pleasure to meet you! You came to the right place. Sadly, the bp forum seems to have a bug at the moment and I can't see your message. If you have any specific questions, I'll reply once I can see it. 

I run a local real estate investor meetup in Santa Cruz. I haven't picked the date for the next one but it will be mid September.  Join us on the meetup group and you will get an invite:

http://www.meetup.com/Santa-Cruz-Real-Estate-Inves...

I have a credible off market lead for an B- / C+ class apartment building in San Leandro (near the hospital) that fits my investing profile. It is outside my historical bay area stomping grounds so I don't know the neighborhoods street by street. Anyone doing deals in San Leandro or Oakland know the area well enough that they can talk specifics? I tend to stay away from C class and want to make sure this is the right property to improve.

- Gratefully