This comment is not directed at you but I just need to vent here for a bit. You guys are my real estate fam.
I’ve received this “slumlording” comment many times from friends and some family members. Frankly, I get mad and frustrated at the same time.
I paid ~900k for SFH in San Leandro in 2020,
~920k for a SFH in Fremont in 2018, and
~710k for a SFH in Hayward in 2018.
Everything is updated or fixed/repaired before I rent it out. When issues come up, I try to address it quickly. If a new fridge is needed, I go and get a new one. No problem. I never nickel and dime my tenants.
I’m still agonizing if I want to raise rents 2% Next year or do something less… Honestly I think I’m probably too soft to be a good landlord.
I don’t have highly paid tech/healthcare/biotech/finance people as tenants. My tenants are construction workers, factory workers, restaurant workers, and retail workers. Where are these people supposed to live?
.
I get mad because that is just not who I am. I’m a big softy! I can’t be ruthless. Besides I lived in roach-infested apartments with walls and cabinets painted over a million times, carpets well past it best by date, and appliances barely working, etc. From my first property, I knew I never wanted to be that kind of landlord…
I get frustrated because how out of touch do you have to be to think 700-900k in the East Bay is slumming it. I get it. It’s not Kensington/Piedmont/Pleasanton or the nicest parts of Oakland or Tri-city area. But damn get out of your ivory towers.
If you don’t mind my questions - what zip is this in, how much sq ft and what is it worth today?
Asking because wife wants to buy a fixer in the American high neighborhood and I am loath to pay an inflated price.
It’s easy scapegoating. They don’t know what’s involved and just following the feed from media sensational news title. Good landlords doesn’t make the news and that’s fine. Keep it strong and your compassion will pay off. But do change your rent with the market (can still keep it slightly below the market for good tenants), smaller frequent increases are better than big increase after few years.
@caiguycaiguy Don’t feel bad. Some folks have never been to parts of the bay area outside the “core” so everywhere that’s not in the “core” is a slum. Your properties are definitely not slums given the prices.
I invest in East Oakland (94621 and others), in addition to SF. My properties are typically small, under $500k, and rent to section 8 or Latino families that don’t speak much English. These houses are far from top quality but everything works. No luxury but they provide a roof over my tenants and they are happy (well, as far as I can tell). I don’t consider myself a slumlord, even though I probably qualify as one by many peoples’ standards. I am a proud housing provider with happy tenants.
So next time someone calls you a slumlord, take them on a tour through East Oakland streets, then drive by your rental properties, and they will think yours are Class A.
Is my cousin gonna be a IPO millionaire soon? Dam him. He’s like only 26. And he’s an early crypto believer and investor. Can’t keep up with these young’uns !
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