Daly city 2plex

@myo I know ur working on ur DC property. Hw’s it going and what rents are you expecting?

And what’s your take in this ? Rents and purchase price. I wouldn’t buy this turn key and updated home for investment but wanted to know

https://www.redfin.com/CA/Daly-City/191-Del-Prado-Dr-94015/home/580084

hey there, I just leased my DC house last week. Upstairs 3/2 for 3700 and Downstairs 3/1 for 2800 to SFSU students with 1 yr lease. I think my number are top of the market number since I am renting to students, but if you were to family, you can still get 3500 for upstairs 3/2 generally, and 2200 to downstairs 2/1 generally. For me, I explicitly spent money to reconfigure to 3/1 for downstairs. Hope this helps. Westlake and St. Francis area are more desire due to proximity to SF. Actually that turn-key looks pretty good. I would buy it if I can get with asking price :slight_smile: Gonna give you 6 cap in Bay Area!

4 Likes

The only thing to watch out for is if downstairs is illegal unit, technically tenant can sue you. So make sure it is covered in the lease and such.

2 Likes

Thanks @myo . Those are sweet numbers.

Is your downstairs legal? I am assuming yours came with separate laundry and power for 2 units. What did you purchase for and remodel amount?

You can have legal bedrooms, but to have kitchen, you need two cars garage. With 2 cars garage, you cannot have 3 bedrooms downstairs. Even for Legal, there is only one power line, generally tenants split the cost or you charge as part of the rent. Generally laundry is shared, or you don’t give laundry to downstairs. That surprises me, but apparently it is sort of normal there.

Happy to refer to my realtor who knows that area well, he also owned a few investment properties like that in the area if you want.

Also, you come up in Milpitas market talk a few times. Are you actively looking there? I am just curious about market condition there. Are you working with Malik group?

@myo Will appreciate the realtor referral. Yes, right on!, Malik’s group is my buying agent, I get an insight on all the transactions happening and quite frankly folks are overpaying. Did you work with them? Whats your experience with them? i dont mind hearing bad rep :slight_smile:

779 list went for 865.
749 list went for 840.
799 list went for all cash at 820

My agent is telling me that they are overpaying and with their expertise in the area, I am hoping to pick up one in milpitas for my primary residence by year end (which is the slow time) and work on a investment property with a partner on another by year end as well.

I’m also investigating out of state (Utah,Indianapolis, Austin - roudnrock) but @manch post about dalycity 4plex made my heat sank about loosing out on appreciation in the bay area.

Nice. I met them at a few of their open houses. They are definitely selling a lot near where I am. I wonder what they will tell to seller if they are telling buyers that people are overpaying :slight_smile:

Do you know whether if the highest bidder and second highest are far apart or pretty close? But I am planning to call them and talk to find out about Milpitas market info since they are really active there. Just wanted to keep in touch with the market here.

PM me for my realtor info, I think I should not post his info publicly here. Austin numbers there are pretty decent too and I am investing there with the hope that Austin is booming with Tech industry there. Don’t know much about Utah, but I think Indianapolis has good cash flow / CAP rate, but appreciation might be flat there.

Well, they promise the seller 1% higher or lower that what they list for.

They let the market decide the overbids

Wow. That’s very strong rent!!

1 Like

I see San Mateo, Foster City and Belmont are high.

But, Daly City, San Bruno and South San Francisco are good at low price.

How about west side (west of 280) of South San Francisco, just above San Bruno?

This is for primary home living purpose (not for rental).

That’s good place to live. Just watch out for plan noise.

1 Like

Manch, Thank you.

Thanks for the knowledge. I was purely curious (not an investor atm) and checked out that house. However the guy in the open house said everything is legal (except for the wet bar downstairs).

So apparently this house also only have washer/dryer in the garage. And no kitchen downstairs.

I’m really surprise rent can be as high as 3700/2800 given those conditions. Maybe that only works for students who are already sharing the place with roommates (thus don’t mind also sharing washer/dryer with tenants upstairs) and no kitchen.

Ditto. I have rentals near SFSU too and rent to students, but your numbers are very high, especially considering yours is in DC, not SF. No wonder none of my student tenants is moving out this year. :slight_smile:

@myo Where in DC is your property? I am curious to know how far students are willing to travel. Mine are all within walking distance or a short bus ride away.

Do you notice the microwave in the wet bar that has the exhaust fan? Guess what, there will be stove rolling in right underneath it. And maybe Fridge in the garage might make its way into the livingroom as well. Who knows.

I think laundry is not a big issue for most of DC residents since a lot of ppl use public laundry service even if they live in apartment buildings.

@maluka, You are welcome :wink: I am in St. Francis area. 9 mins driving distance to SFSU. If you don’t mind sharing, what’s your rent number and what sort of units?

Two houses down from my house was doing an OH so I stopped by and chatted with the owner there and they are also signing lease with similar amount as I am. Probably market demand.

@myo I have a small SFH (less than 900 sq ft) with basement level partially developed rented to a group of 4 students. Upper level is a 2/1 but they are using the living room as a bedroom. Downstairs is one bedroom one bath with some common space area. I am renting out the whole house for $3650. Entire house is remodeled but not like shining new. It’s in 94132.

I have another one with 3/1 upstairs renting for $3250, and 2/1 down renting for $2000. Slightly better remodel and slightly closer to school.

All 3 groups of students have been there for more than 2 years. I guess my rents are lower than market. :slight_smile:

I bought these properties when they were low (but not at bottom, I wish they were). I probably wouldn’t buy them at today’s levels due to the low return rate. But if I can get the rents as strong as yours maybe it still makes sense.

Holy cow, sold for 1.138M, I was willing to buy at 900K but not for that price.

Saw that this morning, and looks like it is ALL CASH. 7 DAY CLOSE.

People are willing to pay that level of premium for a cozy remodel and move in ready home.

It means the buyer pays (1138-900) = $238k for labor and design.

You are right. Just got this leaflet claiming seller got 22 offers and accepted all cash at 1140K. Not sure how many offers are from our friends in this forum… The demand is crazy…

2 Likes