All Forum Posts by: Vamshi Ananth

@Vamshi Ananth  The zip code of 95824 is in my neighborhood of South Sacramento.  I don't live there but use to work as a banker at WFB in that zip. It runs east of stockton blvd to north of 65th pkwy and from south of Fruitridge.  Anyhow if you ask a general question, you'll get general responses like, yes its decent and depends on what you plan to do.  

If you are looking at this from a rental point of view - I would say that the ratio of tenant to homeowners in this zip code is that it is pre dominantly tenant/renters.  The home values in this neighborhood is priced anywhere from $125K (low)- $240K (High) fair market value.  

if you plan to flip this home - you'll have to make sure you comp out your values carefully because the bordering zip codes such as 95820 and 95817 are oak park and oak park has been name one of the locations in sac that has more crime and drugs (previously).  However on the flip side, Oak park has also been one of the up and coming locations in Sacramento and the revitalization of oak park has been tremendous.  The community in Oak Park alongside Broadway has urban developments filled with coffee shops, boutiques, eateries and even brewery.  

Hope that helps! 

@Vamshi Ananth -- A total of 212 properties have sold this year in the 95824 Zip Code for a median price of $186,000. The average home for the neighborhood is about 1,150 sq ft and the average days on market is 24 which shows that properties move fast in this area.

The are is probably most well-known for it's crime, unfortunately. Although, there are a few little pockets in there that aren't that bad. It's sort of like Oak Park in that it's street by street as far as how nice the neighborhood is. Plus, you've got horrible school ratings (2-4 out of 10) and so that's gonna keep more affluent buyers from moving into the area.

The median household income for the area is about $31k per year, which is about $22k per year LESS than the rest of the county. It's also a younger neighborhood, with a lot of first time buyers and renters in it. The median age is 29.5 compared to 35 for the county.

That all being said, it has some great rental properties. I currently know of one available off-market that's one of the best performing rental properties in the county. I've ran the numbers already for about a dozen other investors, so I know that to be so and don't say it lightly. 

Ultimately, it's really going to come down to your comfort level with the neighborhood. Drive the neighborhood, look at the available properties for sale, and don't be afraid to even knock some doors on your future neighbors and ask them their thoughts on the area.

If you have a particular property in mind, let me know and I'll run the numbers on it and let you know my thoughts. Best of luck!

Hi @Vamshi Ananth, that's actually not a very thorough list of paperwork. You aren't truly ready to house hunt in the Bay Area with just that minimal paperwork reviewed. Someone is being a slacker, that's a Nebraska or Oklahoma list where they close escrow in 2-4 months, not a Bay Area list where we close in 18-30 days typically.

Credit:

• Photo ID.
• 2 year employment history, company, position, and HR/payroll person name/phone/email.
• 2 year residential history, landlord names/phones/emails. 
• 12 months of proof you paid rent on time (search your bank account for "$2300" if your rent is $2300).

Income:

• Most recent month of paystubs.
• 2 years of W2/1099s.
• 2 years of personal tax returns. Your SSN is on these, so I don't need social security card.
• 2 years of tax returns for any business you have >25% ownership interest in. I'll do the YTD P&L, so that isn't needed.
• 2 years of K1s for any business you have <25% ownership interest in.
• Conservative estimate for gross rents from subject property. This can be provided immediately prior to you writing an offer, if rental income is needed to qualify.
• Most recent mortgage statement, homeowner's insurance declaration page, and if applicable leases, for all real estate owned. I can pull the prop tax bills, so that isn't needed.

Assets:

• 2 months bank statements, all accounts, including retirement accounts. 
• Sources of all non-paystub deposits greater than 25% of gross monthly earnings documented, explained, and reviewed. 

That is approximately the bare minimum required to do anything more than be a looky-loo or tire-kicker at weekend open houses. No one in the Bay Area is ready to talk to a real estate agent or ask for a non-weekend-open-house home showing until all of that has been thoroughly reviewed or until you have the full purchase price of the home you wish to purchase liquid and available without needing to borrow money.

Earnest money deposits in our area are typically for tens of thousands of dollars. You don't want to expose that to risk because it was "too much work" to email a PDF.

We do not "submit for underwriting consideration and review to maybe give you a mortgage" in the Bay Area. We submit for confirmation of loan approval and pending funding once the appraisal is back confirming value. The only thing a LO or mortgage broker in the Bay Area should be asking you for once you go into contract is updated paystubs and bank statements, to confirm you haven't received a paycut or spent the money on partying.

@Account Closed, you are a braver man than I, my friend. By late 2011 I started buying out of state (TX) and had a plan to leave the day job. I was going to collect enough cash flowing property out of state (SFH, duplexes, triplex, quads - in TX and GA) to quit the day job within 3 years and do real estate full time. But as I came to realize later, leveraged SFH homes really don't cash flow worth a damn, but that's for another thread.

I collected quite a few of these out of state properties, but I was not going to hit my "walk away" number any time soon.  My wife would periodically suggest, "Why don't you just quit and do real estate full time?  You hate your day job.  Just walk away." But I always had some reason for why it was not the right time or why it made sense to wait a bit longer. I did not like working a J.O.B., but was not uncomfortable enough (or brave enough) to walk away.

Then I was done a HUGE favor at the end of 2013. About 75% of the company I worked for got laid off. We could all see the train coming from a mile away. Everybody knew it would be a nasty layoff, but nobody knew exactly when it was coming our how big it would be. I decided to embrace the impending doom. I told my supervisor/head of the department that I hoped to be laid off.  When layoffs were announced 6 weeks before they actually happened everybody was freaking out. Getting their CV's together and job hunting. I was the only one in the company who was happy. In fact, I was thrilled. I had already decided the layoff would be the best thing that ever happened to me. I told everybody exactly what I was going to do next and burned all my bridges to ensure I could never go back again.

It was a bit rough at first and luckily my wife had the day job with the benefits, health insurance, etc for the family or it might have gotten a little dicey.  My father suggested numerous times that I should consider looking for a job. By then I was so mentally beyond that concept that I told him I'd rather live out of a cardboard box than work for somebody again. 

That first year after being laid off I acquired 10 more properties for the same amount of $ out of pocket as the first 3 had cost. And this year I'll make more than I did during the last 5 years of my low six-figure day job. Unlike Minh I did not have the guts to jump into the deep end of my own volition, but am very glad I chose to embrace the change when it was forced upon me and am grateful for being laid off. If you're waiting for the push that may never come you may want to reconsider.

Cheers,

Jeff

The rents seem to also have topped out here in the West Coast and especially our SF Bay Area market. Zumper has an interesting report I thought would be of interest to fellow BPers.

San Francisco and San Jose list in the top 5 rental markets in US, SF has a drop of -0.6% for 1 bed and a paltry  0.2% increase to 2 bed. San Jose on the other hand saw a -3.6% and -3.5% decline to its 1 and 2 bed median rents. These numbers does not factor in the 1-2 months rent rebates that are prevalent in the bay area market..... which if factored in the numbers might look a bit more ugly. 

I've had friends working for companies like Cisco and Intel, Ericson getting laid off in the recent months..... guess the bubble is starting to prick.

https://www.zumper.com/blog/2016/09/zumper-nationa...