OK. We are on the same page then, just talking about 2 different scenarios. I was only considering my case where all my cash was going to the 1031 purchase, but considering the current market, I was planning to do an all cash purchase (with additional cash) then finance the property to take the cash out (that i added)
I am not thinking near future, may be one or two years or even more, as I want to reduce my real estate holding and increase stock holding. I have paid off my mortgages with whatever gain/equity I had. It reduced my monthly total mortgage cash flow drastically and LTV dropped from 45% to appx 30%. All I am holding in RE is what I bought Pre-2012, giving me good cap rate (dividend like) and appreciation.
I have already announced that I am not going to bid or buy any more.
For me, now, finding companies like NVDA, IRBT, AAPL, TSLA or AMZN is easier than getting (Contract) a home around bay area !
I think investors are priced out of SFH’s in prime Bay Area. So either you go to less than prime areas, or buy TH and condos in prime areas. Or you can just pay 50%+ down and force the property to cashflow.
Alternatively, how about 1031 into an SFH you intend to live in couples years down the road, but just rent it out in the meantime? Then you don’t need to worry about cashflow and can put out crazy bids like owner occupants.
For Prime Bay Area location investments, only two choices either Condos or Multiplexes esp 4 plex or more Apartment style where you have cash flow and growth rates are maintained !
Today results on INVH, I see INVH is good as they continue to have 95% rented with 5% vacancy rate, paid off 500M debt early, declared small qtrly dividend 0.06/share (IIRC, Today ex-div date). Looks like INVH is too good for long hold.
Again, please do your own review/research before investing !
Two of my friends Primary single story SFH homes, less than 1700 sqft and similar lot, recently listed at 1.9XX M . Both sold above 2M and the homes are 1.5 Miles South of this Orion Lane, bordering Saratoga.
Listing at 1.688M with such lot and sqft is too low for Monta Vista SFH homes.
One purchased the home appx for 450k (1996) and another for 1.1M (2006)
They do not have multiple SFH, but Cupertino home is there 2nd primary as they sold their first already to buy this home. They want to get rid of any mortgages and live cash free homes. I can not say empty nesters, may have minimum 1 M in retirement account with 25 years of IT service.
Both of them, kind of retirement option, selling their homes after Kids joined the college, moving to outer area, purchased homes (full cash) at Dublin and Pleasanton.