What do you think about this SFH in Hayward?


#1

Rent Zestimate $2500
Carrying cost PITI close to $2800, so barely breakeven with depreciation

If worst case scenario is we get into recession and rents fall to around $1600, then this will be money drain.

But it is not far from BART


#2

Price is nice…what do you think it will ultimately go for realistically?


#3

Several houses were sold nearby over the last year all between 475 and 505K.
Nearest comp:

This will go under 510-515K. Bad pictures in this listing scare buyers.

18 minutes walk to South Hayward BART of 5 minutes on bike - mostly flat.
street view looks clean with newer cars, no one is fixing cars.
Per trulia it is a low crime area.
Will probably need to spend under 1$K to clean up front and back yard.
22 days on the market
Very close to shopping/downtown. One of the properties behind is a church


#4

Is this considered low crime area? Several crimes a month, including aggravated assault. Trulia paints it as low crime area.


#5

At least the place supposedly is remodeled for you. Hmm, not sure why people are not liking this. Yeah, school rankings could def be better. I am not the slightest that familiar with Hayward granted. Geez, if you can get rent like that I guess I am way undercharging for my 3/1 in Fremont.


#6

Don’t know how accurate zillow rent estimate for this area. But here is cheapest 3BR rental same distance from BART
https://sfbay.craigslist.org/eby/apa/6084151668.html


#7

Just realized that Hayward has rent control after checking list compiled by Manch. Under rent control this does not look as such a deal


#8

But rent control doesn’t cover SFH because of state law. Whether that state law holds up long term? God knows… :slight_smile:


#9

Anyone knows if Hayward has just cause eviction?


#10

Just to throw it out there, would this be a prime candidate for Sec 8 renting? You may be able to get a good amount of rent for your troubles while you hope for some appreciation and enjoy the tax benefits.


#11

My current thinking is to avoid Class B and C tenants in CA at all costs. Maybe it’s just me, but I don’t feel comfortable with the current political climate.


#12

Who are you renting to in West Oakland?


#13

You realize that’s a CA problem and not a national one. Only the most liberal areas think rent control is a good idea.


#14

Someone who made more money than me…


#15

Come on, that is hard to believe…


#16

I think Prop 13 is the root cause. Cities are incentivized NOT to build housing. Rent control became the politically convenient tool.


#17

Prop 13 is only one aspect. The years and dollars for required studies, permits, fees, etc are insane. @Elt1 has said it amounts to a $150k tax per unit on new construction. That’s the entire cost of construction in most of America. In CA, that gets you permission to do construction. That’s insane. I’ve posted the study before that shows why liberal cities are so expensive. It’s the crazy amount of regulation. The irony is people think the solution is to adopt policies that are further left, and that makes it worse.


#18

I think this area will be first to drop in price and rent in downturn, but then will come roaring back like Oakland did. Maybe we are at the tail end of the cycle and its hard to find a deal.

If we are at the tail end of the cycle, I don’t know if rents will hold and this place will keep appreciating. If it is section 8 rent contract - will local housing authority ask for rent reduction if prevailing rents around are lower? Section 8 tenants will probably not care much about reduced rents as government pays most of rent.


#19

I suppose in theory, they might revise your rent down if it is major at contract anniversary but I don’t recall that ever happening to me in Oakland even in the down years. One thing good about Sec 8 in that regard…some income stability as you ride it out


#20

Looks like Hayward doesn’t have just-cause eviction. The max rent increase is limited to 5% per year.