All Forum Posts by: Steve C.

Which address should I use for notice address in california lease form?

I think some people recommend PO box for the purpose, but I don't have one, and I am not sure whether it's worthwhile getting one just for this purpose. 

Can I put my office address (I am an engineer) for the purpose?

Thanks in advance for any input!

@Ken Vance

Yes, I plan to manage myself if numbers work for any property. Redfin suggested insurance of $100 per month. My agent told me $50 is more reasonable amount. I agreed since I heard another data point that insurance is under $1000 per year even with much larger home. 

Thanks a million for everyone who gave me valuable feedback. I also agree that this speculative investment. I personally don't feel comfortable with this and don't plan to continue especially considering your feedbacks. 

However, I still want to play devil's advocate and see whether there is any justification for this kind of investment with potential appreciation. 

Google is supposed to be bringing 70,000 employees to the area within the next 5 years and Facebook is hiring in 10,000 new employees over the next year. Apple also announced recently that they will be hiring 20,000 over the next 5 years including the Bay area.  

So I think home price appreciation is inevitable. The issue is that whether someone can survive negative cash flow with long enough time. I would argue at least 5 year to be safe side. 

Inventory in the Bay area is extremely low. 

"All of this is due to an incredible lack of inventory. Since January 2000, Santa Clara County has averaged 94 days of inventory. Last month it was twelve."

http://popehandy.rereport.com/market_reports?searc...

I am still betting on the Bay area. Yes, this is speculative investment. But I don't think I can afford this though. :)

I am trying to find rental property in the bay area, especially south San Jose area. 

I am planning to buy 2bd/2ba property priced at around 450-550K, 

so I am mainly looking at Blossom Valley area of south San Jose. 

https://www.redfin.com/neighborhood/65588/CA/San-J...

https://www.zillow.com/blossom-valley-san-jose-ca/

I analyzed one property I am interested in, which I think will have an estimate of -$1182.99 cash flow.

As many of you know, the Bay area is very expensive and it's difficult to have positive cash flow. 

But I think appreciation plays big role here compared to other area. 

I think houses in the Bay area will continue to appreciate greatly as companies recruiting many people

and more people flooding in every year. 

If I can somehow managed to sustain negative cash flow, then is it worthwhile trying to survive with negative cash flow?

I know that negative cash flow is generally not recommended in principle, but trying to understand 

whether it is worthwhile to take a risk in the Bay area. 

Also, with similar price range, should I target better area (say near Cupertino) with 1 bedroom unit?

I also think 1 bedroom unit is generally not recommended, but trying to understand whether there can be exceptions with great location. 

For example, this 1 bed cost is listed at $479K. 

https://www.redfin.com/CA/San-Jose/4681-Albany-Cir-95129/unit-143/home/1695726

Any advice is greatly appreciated. Thank you very much in advance.