Hi Paul - thank you for the advice. I did see a few duplexes listed in san francisco. They were mostly 2 units at high 800s to 900s but probably close over $1MM. Did see a 2 unit duplex open house in the low 800s near Glen Park Bart but the lower unit (1BR/1BA) was really small as it was shorten by the hill and probably converted from its garage so no garage. It also came with Section 8 renters (government pays 70% of renters rent) in the upper unit (3BR/1.5BA). The rental income upstairs was only pulling in $2300-2400, could potentially pull in over $3000 at market rates in the future. We will be mostly looking at the southern areas of San Francisco, such as Ingleside, Sunny Side, Glen Park, etc. Other areas of interest are Berkeley, El Cerrito, San Bruno, Daly City.
Hi Chris - We did wonder about that too. So we asked the officer. If I remember correctly the loan can be adjusted 3 times with a maximum rate adjustment of 2% each time. If rate was 3.75% could go up to max of 9.75% (3.75% + 6%) on the 3rd adjustment.
Hi Sydney - I think having good staging can surely help buyers see the potential of a property. I hope you get a lot of opportunities out here. Its an exciting time.
Hi Justin - That is right. They call it a POPPY loan. In addition: Eligible property types are SFR, owner occupied multip-family 2-4 unites, condos, TICs(tenant in common). Property can be in these counties: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Solano, and Sonoma. Must be purchase loan only. Can may more than monthly payments with no fees. No prepayment penalty. A $1MM 100% loan would require about $55K cash reserve to close.
