All Forum Posts by: Teddy Smith

@Hayden H. thanks so much for your response, Hayden. Much appreciated.

@Hayden H. thanks for the input, Hayden. Much appreciated.

I live in Redwood City, so close by. I'd plan on living in one of the 4 units in the Oakland property for at least a year, maybe longer. 

Cash flow is not my top priority, but I do want it to cash flow at least not require me to come out of pocket each month to cover PITI and hopefully enough to cover O&M expenses (e.g. new roof when the time comes, new appliances as needed, etc.)

This property is in West Oakland, within 10 mins walking distance to MacArthur BART. It looks like you're quite close...do you have an opinion on that part of Oakland?

@Brian Garlington yes, that was my thinking. He doesn't own rentals in Oakland, he was speaking from experience of dealing with different legal cases in Oakland as an eviction attorney. And as has been said, don't take advice from someone who has not personally done what they're advising you on...I think there's a lot of truth to that, so I'm glad you responded.

My realtor has been quite helpful. He does own a 4-plex in Oakland and has given me a pretty objective view of the situation, but being a first time buyer, I simply wanted to get some more input.

That being said, do you plan to continue investing in rentals in Oakland?

Hi All,

I'm a newbie to the real estate game, trying to put together my first deal.

I'm using an FHA loan, and I am looking to buy a multi-unit in Oakland, CA. I've got a deal I'm looking at right now that would cash flow once I move out after the first year owner occupancy requirement goes away (even with about $800 in mortgage insurance).

However, I just talked with an eviction attorney, and he basically advised me to stay the hell away from Oakland and surrounding cities as they are so tenant friendly and therefore made it seem like it's a nightmare to be a landlord in Oakland.

This conversation has left me with some hesitation about investing in Oakland, and it has me thinking about investing in out-of-state turnkey rentals, in either Florida or Texas.

Does anyone have a helpful opinion or advice on this?

@eddie brady

@Eddie Brady a lot of folks are saying that when mortgage forbearance ends that there will be a ton of foreclosures that hit the market, dropping prices. So that one should wait to buy until that happens

Hi All,

I'm a newbie who wants to get started in real estate. Currently, I'm looking into a duplex in the East Bay of the SF Bay Area that's just been fully renovated and one of the units has just been filled with a tenant paying a market rent.

I'd use an FHA loan, and as far as I can tell, the numbers indicate that if I can get another market rent in the vacant unit that the property should cashflow somewhere around $300-$500 per month.

A lot of videos I've watched on YouTube are suggesting waiting until mortgage forbearance expires, but I know that's going to be at least another 7 months, and I feel as though there's always going to be many reasons not to get started, and considering that the numbers make sense (i.e. that the property should cash flow from day 1) and considering that it's just been fully renovated so O&M costs should be minimal for the next several years, I feel like I should just get going and get started.

Also of note, I am planning on using an FHA loan, which does required owner occupancy for a year, but not actually living in it. My realtor says he knows a bunch of people who have done this and they just have their mail sent there and it's never been an issue. Thoughts on this plan?

Any advice would be appreciated.

Hi All,

I'm a newbie who is in the process of trying to buy my first property. I live in the San Francisco Bay Area, and I've been pre-approved for an FHA 203k loan. I've been looking in Oakland, mostly for duplexes, as ideally I'd like to live in one unit and rent out the other as I'm 34 and still living with my dad and am pretty desperate to get out on my own.

I've been seriously looking for 2 months now, have written several offers, even had 2 offers accepted but it turns out that I'm absolutely terrible at predicting how much renovations will cost. Like I'm unable to do so within a $100k margin of error.

Honestly I never thought it would be so emotional and emotionally exhausting.

In any event, I feel as committed as ever to getting started in real estate investing, and I wanted to ask for some advice. First, is now a good time to start? Or would it be smarter to wait until government stimulus plans phase out, most notably mortgage forbearance?

Or should I be ready to make a deal before then, provided the numbers make sense?

Also, along those lines, is there anyone on this forum who has and is still investing in the Bay Area who can help me with the numbers?

Generally, I'm looking for a duplex that I can be reasonably confident that I can rent out for at least what it costs me every month (principal, interest, property taxes, home insurance, mortgage insurance), and hopefully a bit more.

And generally, anything else I should be thinking of? or looking for?

I'm terrified of ****ing up my first deal so any help would be appreciated.