Silicon Valley Is Still The Place To Be


#244

Banana island in westlake mall has ok Malaysian food. Better than Ipoh I think. Even though that’s still pretty meh.


#245

I know a couple who lives in Fairfield who own more than 50 properties (although they are mostly low cost condos). They are in their 60s. Do you own at least 20 properties? If not, I would suggest hold on to all of yours…


#246

People really hate daly city huh? When i first come to this country 30 yrs ago i live in sunset for 10 yrs then move to daly city after my dad bought a house there 20 yrs ago. In the beginning daly city is not as convinient as sunset, but now time has changed, the city of daly city has done a fabulous job compare to other city.
so here’s some breakdown why i like daly city more, we own two property in daly city, my parents place in westlake #1 district and mine in westlake terrace(longview drive). #1 district i have to say is better than a lot of area in sunset. In terms of fogs, there’s a misunderstanding daly city is always foggy, not true, only like 3 big months a year and some here and there. westlake #1 is not foggy at all , pretty similar to sunset or even better. Environment is very similar to sunset,and houses are detached a plus, close to shopping mall, close to bart, close to bus.
for my other house currently rented out, that area is a bit more foggy, but great part is that many houses there have 2 story , same as sunset houses, also detached, oceanview(my wife loves). has bus to bart that’s pretty convinient. Also daly city has very low water/garbage rate, parking are easier, roads repave pretty often compare to other city, and the city council has done a great job bringing in business and development and very safe(police is amazing, i called 2 times in 20 yrs, once for some kid playing hide and seek in neighbors yard and once for loud noise of renter moving in at same block) both times cops came and responded within 5-10 minutes.
To me, sunset is way over rated, after living there for 10 yrs, hard to find parking, and hear my neighbors next door left and right making noise, my friend even can hear next door having sex and banging on the wall every night. Extremely difficult to find parking, crime is absolutely ridiculous. The only area i like sunset is near the zoo.

one last thing, NO RENT CONTROL.

sfdragonboy, as for san bruno, really depends on your own personal preference. just not on the other side of el camino. compare crestmoor and rollingwood , creatmoor is a lot better, rollingwood has quite a lot of crime.


#247

DC gets no respect…The Rodney Dangerfield of RE…definitely preferred to the other DC, AKA the evil empire


#248

Ok, @dioworld, I will add Westlake to the list of searched neighborhoods. Not sure why you say the parking is bad in the Sunset. I live close to the Noriega commercial corridor and there is plenty of parking a block or two over even during business hours. After 6pm or so, the area clears out like clockwork. Honestly, the reason why a lot of folks don’t like DC is the notion that well it is close to the cemetaries. Sure, that is Colma technically but still close to them. There is that rumor about the persistent fog too. The reality is that there are fewer and fewer cheaper housing areas around here and those areas are being targeted by folks starting out if they can’t afford anything more. Not everyone wants a condo nor wants to commute from the East Bay. They want to be on this side at least which frankly saves you from bridge tolls too. I will reluctantly look at SSF again but every time I see a plane fly or take off over a prospective house I shake my head. Wow, a million bucks for a plane every 5-10 minutes over your head… Why???


#249

No, no, no I am an absolutely relatively small timer owner compared to you and others on here. Mom and Pop owner = sfdragonboy. I am just technically exploring what to do since I may have some unexpected vacancies coming up that should improve the selling profile even more should I decide to go that route. I am sure too many people are priced out on SFHs so why not partner up and buy a 4plex and live in a unit or two and have the extra income from the other units? Makes sense to me, right? You gotta start somewhere. I could also just bump up my rents when the Sec 8 tenants are gone (even in this lower rental market) since they were tad lower for awhile now. So cash flow can be even better and thus more reason to keep but honestly I have owned the building since early 90’s. I am about to lose out on depreciation and of course since we both work regular jobs we don’t get any immediate tax loss breaks. And I wouldn’t mind the break or free-up from one less property to be honest. Been doing this (landlording) since pretty much graduating from college. Time for me. Heck, if one of you wants my Fremont SFH in South Sundale, let me know. I might do a non agent, offline deal with you as long as you can work with me should I instead combo the 4plex and Fremont to buy a really nice place in San Mateo County instead of doing DC or San Bruno. I really worry that Sec 1031 might be wiped out (it shouldn’t be, since it is a truly “useful” policy for all kinds of properties and businesses). Yes, the money from this 4plex has been good and is nice as retirement income but I am not too worried about it. I have old school kind of pension as well as 401ks that will kick in when in retirement. Remember, no kids. And we live relatively simply (but plan to travel and live in Asia and here during the year when it is optimal in each area). It makes total sense for you cats with the kiddies to keep at it but not so sure it is the wise move for us.


#250

Alright sfdragonboy, I see where you’re getting at. Yes enough is enough. Have fun with your nest egg :slight_smile:


#251

Few questions about this options you are considering.

Did you buy that home pre-2013? Is this giving you cap rate above 4%? If both answers are “YES”, why do you want to sell now? It can be easily a cash cow forever considering selling expense appx 10% or lowest 6%.

San Mateo is expensive and continue to be expensive until down turn comes. The property tax will be on new purchased price which is not economical in the long run, esp if you are above 50s and expecting Semi-retirement (if so).

4Plex is a good way to go, but buy using extra cash (if you have) keeping Fremont SFH. IMO, any home bought pre-2013 is not worth selling.


#252

IMO, any home bought in the Bay Area is not worth selling.

Wait… that means only probate sales in the Bay Area from here on if everyone followed my advice :grin:


#253

I told an agent last year – it seems like we’re just looking at homes where the owner passed away.

@sfdragonboy - can you send me the details? I have a family member that might be interested, but I’ll filter for them first.


#254

May be, but it depends ! Here is the low cap, but high appreciation home ! I had 1.93% Cap rate with my 2015 bought home. It was negative cash flow even with 3.25% ARM, but appraised well 25% above (18 months) my purchase price, done SOLD !


#255

But if you were to hold on to it for another 10 years, you might be able to sell it for a million more! Not bad for an additional $100k income per year.


#256

If your gain is 25% and commission rate was 5%.m, your before tax gain is only 20%. After tax gain would be 16%. But if you used only 25% down, you probably doubled your money, better than stocks


#257

No doubt. Carrying loss over many years with for sure known interest rate hike, I may end miserable situation to hold 10 years.

Made one mistake, locking ARM at 3.25% and making 1.93% return. Home was not in great shape, needs remodel/redesign. It mainly sells for land value.

When I see holding forever as rental or selling with 25% return, selling is attractive as it free me from big super jumbo loan and excellent 100% return on my investment amount !

After tax gain would be 16% ==> Do not forget, Jerry Brown also takes state income tax on capital gain !

For sure, better than stocks, I put down 20% as I mainly purchased for me to Remodel and make it primary. It is 95% return on my 20% money.

I did not have cash to remodel and sell, no interest to get hard money loan (or higher interest) to remodel. No time, no additional cash reserve (appx 400k) required. Otherwise, it would have given me another 20% easily. Carrying cost and my 1 year time is required for this additional 20%. I do not want to leave my current job !


#258

Huh? No need to crawl back depreciation? No need to account for negative cash flow?
Account for downpayment, no need to account for remodel? Wow!


#259

@dioworld where do you in Daly City for Hong Kong style cafe? 茶餐廳。 The one in Ranch 99 mall sucks. I like ABC in outer Sunset. What are the other options?


#260

Remodel and other losses (negative cash flow) are accounted already, tax alone not accounted. Just verified appx after taxes paid, Profit comes to 84% of my 20% down payment. All those detailed carrying cost, losses, sales commission…etc will be accounted when I really file taxes. On any case, this is far better deal, but scary ride - during sale time - for me, than stocks!

I was really disturbed when I was deciding on the final offers, two persons very close with equal weight-age, but need to decide one of them who will not go back at a later time. My only ask for my listing agent was “Out of the two, Let me know who will not go back on his buy decision?” My agent told me to accept the one who waived off inspection and other contingencies.


#261

No worries, I ain’t going anywhere (even if I sell off the apt building and the Fremont sfh) since I am addicted to real estate porn…


#262

On which? Fremont house?


#263

No, I bought in end of 2014 in a private sale. Mid 400k for 3/1 SFH home in Fremont. No bad, eh? Conservative estimates is that this should sell for high 600s or low 700s right now. Yes, I don’t really want to sell this one since it is doing well and I am not charging as much rent as I should be according to Big Bro. Rent covers mortgage and property tax and that is cool with me.