All Forum Posts by: Suthy M.

@Account Closed Hi Minh, thanks for your input. It's been very helpful. 

How common are deals like the one you've described in SF? I'm curious how long ago that 1.6 deal occurred. 

@Amit M. There are not a lot of comps actually. I noticed that almost all of the properties sold are hovering around $1.7M, but most of these units have low rental rates, and many of these units do not have the 3bed units. Does higher rental income justify a 200k higher price tag? 

@Brian Garlington Thanks for your input. It is a great zip code but not the most desirable location within the zip. It isn't "sketchy" by any means, just not the most saught-after block, but it is a good neighborhood nonetheless. All units are currently leased. The reason for the range is because rents are currently renewing for an additional year from 2200 to 2300. I have yet to find a property anywhere in the Bay Area that brings in 1% unfortunately (due to the extreme costs of property values).But I take your point--thanks.   

There are 4 units: total square footage is about 3,600 square footage and land about 10,000 square feet. The building is in good condition and about 45 years old. It is about 45 minutes south of San Francisco so that is why the price is so high. Very good rental market. This is in a fine zip code, but not the most desirable neighborhood. The price per square foot is comparable with many single-family units in the same neighborhood. 

2 bedroom 1 bath - about $2200-2300/month

2 bedroom 1 bath - about $2200-2300/month

2 bedroom 1 bath - about $1500/month due to rental controlled unit

3 bedroom 2 bath - about $3200-3400/month

@Bjorn Ahlblad Thanks for your response. 

Those are my own numbers. I will manage myself so that is why expenses are a little less than you might expect. Vacancy at 5% would be $5,700. 

Hello,

I am hoping to get some investment advice on a fourplex in San Jose, CA.

List price: 1.9M

Rental income: 114k/annual

Taxes: 25k/annual

Expenses: 37k/annual

Mortgage with 1.5 borrowed (3.75% APR): 84k/annual

Cap: 3.75%

NOI: $70,500

Please let me know your thoughts or questions. Much appreciated.