You know what I mean, the nice tile counters instead of laminate, or the brushed nickel fixtures instead of chrome.

Not sure where they're dreaming up all those numbers, but soft costs, finance costs and holding costs all factor into the equation.

If the trend continues where NODs and subsequently foreclosures will continue to creep up even under the current regime and let's say hypothetically stabilize at 2200 per month (about 50% of what it was prior to AB284) maybe a "soft landing" will just organically happen over time - it'll take a little longer to sort out - but the jarring effects of having another wild supply and price swing would be somewhat averted.

I do not want you to loose money --in first deal and get disappointed - first learn lot of things -- Contracts, assignments, transactional funding, Hard Money, Repair Costs , Soft costs etc-- Marketing Extensively --how ?

If they know they have a soft landlord, your bills will be the last to be paid.

So to figure where the rents should be, just work backwards by adding in all the expenses and see where the 120% mark lies.Finally, the commercial rental market is pretty soft right now.

Then you build a pro-forma of soft and hard costs and your targeted return and work you way backwards.

In fact, it's even less likely to apply in the Bay Area.The reason I don't care much for the 2% rule is because it paints the market with too broad of a brush.

However, since it's me that's doing the painting on trim, I brush-apply all trim paint, and a gallon goes a very, very, very long way in properly prepped and primed interior trim.Speaking of making white wall and trim paint go a long way, Kilz2 primer costs about $15 gallon and an undercoat of that will get a lot more performance out of whatever expensive paint you use, as well as guarantee better paint adhesion.

When markets are soft and inventory is high, no one will build new houses.