The smart play is to build new or rehab existing enough to qualify for the exemption. .I have invested for 20 years with Madison Park Properties. .They convert warehouses into residential lofts, market rate rental housing, no BMRS, and best no rent control…
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Very smart play. But first you have to get the whole building vacant, and you can’t force people out. Also, what qualifies as “substantially rehabilitated”? I suppose just putting in a new kitchen doesn’t qualify?
That is why we did warehouse conversions…Takes big money…best to invest with a pro.
And pended of course…
Obviously not rough enough…sold, for 800K (def Asian 
)
https://www.redfin.com/CA/Oakland/2261-48th-Ave-94601/home/1774996
Come on… wow… 800k for that
My triplex is not that too hard from there. I guess that’s a good boost for my property values…
Everything so expensive!
It’s expensive because it was vacant?
Probably…since you can charge market rates.
Yeah. But if you have tenants, your property value would be hard to compare with this vacant REO. Also for this seller, how do they make it vacant again when they need to sell?
Right, and you figure how much work is needed minimum, 75-100k?
Even with market rents, how much can one rent these for in that area? You probably have a better feel for that since I am further west. I am guessing maybe 1500-1750/unit? More?
After renovation and with its large size, each unit should rent for $2000+. You can get a 10%+ rental yield easily. But in 20 years, you may regret over this purchase.
Again, I don’t know for a fact that that part of Oakland can command 2k rent for 2/1 unit. It might. @caiguycaiguy might have a better feel since he is closer to that area. Now that part about the 20 years, come on, who thinks like that? If you make money for the first 20 years and presumably your building has appreciated in value quite a bit and you have gotten every tax break you can (depreciation) well that is all one can reasonably expect and hope for, right? A lot can happen in 20 years…
Looking at the pics again, geez, I think it would take more than 100k easily to turn every unit to decent shape…
Well, can you find a much better deal in Oakland which is vacant?
Since these units will be newly renovated and with parking, I can definitely see the 2000+ rent for each unit… that @BAGB mentioned.
3/2 unit $2000-2400
2/1 units $1700-2100
I’m more conservative so I would personally lean closer to the lower end of the ranges but that’s just me. I don’t have hard data so it’s mostly my observation of the area …
True, probably not, and that is why this went so fast. My contractor went there one of the weekends (it was pouring rain, so I said no ain’t going over there) and he said there were hordes of people. But you are still needing to put in a fair amount of work so you are going to be offline for a bit (unless you have a massive team of workers). I may drive by there this summer to see what’s up…
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You are forgetting Real Estate 101…buy when there is mud in the streets…Best time to buy is when it is raining. just like duck hunting. …Bad weather is for the pros, keeps the amateurs away and can expose potential problems like leaks and flooding…
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Speaking of Oakland you meant: buy when there is BOOD and mud in the streets ?
There is always blood in the streets, time to buy…
Well, it is not that I forgot RE 1 even (never mind the advanced 101 class ), it is just that I realistically knew this property would go well over asking. Sure, had it been a private/pocket listing at 645k or slightly more, all vacant, I am there in my pajamas but that simply was not the case here. As expected, it was massive hordes of people turning out in the rain to look at it. I might call the listing agent to find out how many offers were received on this. Had to be easily over a dozen. Proof is in the pudding. Sold for 800k and still needs plenty of work. To me, not as attractive anymore. First time buy, maybe. Like @caiguycaiguy said, helps us existing owners of multi units in Oakland.