Getting advice for current home and future home


You can get a Heloc on the home to pay for the negative cash flow when your income is not enough.

I think a heloc is better than paying down to achieve a positive cash flow.


We are both working at tech company. Semiconductor.


You mean get the HELOC from current home and pay to principle to loan after buy 2nd home and move in?


No. Just get a heloc, leave it open but never use it unless you have a cash crunch. I assume that your income can support both houses and the heloc is just a backup in case you have a job loss or income reduction.

Heloc will serve as your emergency fund, you should try to keep earning enough to pay for 2 houses until rent increase causes it to become cash flow positive.

Heloc serves more psychological purpose than financial. If your income can’t support 2 houses, better buy 2 cheaper houses or just 1. There’s no magic formula to turn negative cahflow to positive.


Not buying 2nd home(move in) 1.8~2M. Buying 1.5M and refinancing with more down-payment on first home?


Possible ways to make it cash flow is

  1. Rent increase, but that is not in your control as market decides
  2. Expense reduction, this results refinancing, but rates are up and not economical.

As time pass by, the rent increase that will get you positive cash flow.

Second, Why are you so much concern about positive cash flow now as long as your other income is able to support it? Any loss you make it will be returned when you sell it or when it is super positive cash flow later.

You would only need to calculate whether selling now (with 500k capital gain tax deduction) is better or renting it better as a long term perspective.

Bay Area is always negative cash flow initially for few years. It is very common.


Not necessarily true, again I achieved it early on with my 4plex apartment building. My buddy accountant was shocked as heck when he did my taxes for the first time and saw that. Rents from multiple units was the key vs a a relatively lower price point back then in Oakland.

My new San Bruno home is fairly close to break-even if not cash flow positive (when taking into account ugly property tax bill to come) and had I really wanted to max out on the rent (had legit reasons for not doing it).


You could still be cashflow positive with 4-plex as late as last year (I posted my pro forma from my Sunnyvale complex on another thread before). Can’t find anything cashflow positive this year


Absolutely, but it was about to be fully depreciated and I felt the time was right to come back to the West side. It doesn’t make sense for me to sell the Fremont place yet but I am putting out feelers. If cash flow possibilities from a closer property presents itself I have to consider it, right?


Both of you right with multiplex as they produce better cash flow. I was talking OPs SFH and its cash flow.


What you guys think Silver Creek?

School isn’t bad but high school might be not what I want it.
Large size.
Trafffice is okay within 1hr to Santa Clara and north San Jose.


Silver creek is not bad. The high school may not be what you want but I think you should not send your children to an “elite” high school. Price growth will be good but not as good as Cupertino, downtown San Jose or the Diridon station area. Commute will not be bad, especially if you have flex hours.


willow glenn?



Growth? => As Sheriff said. He lived there.
Large size => Yes, you can get it
Quiet => Yes, quiet, nice,newer neighborhood.
Traffic to Santa Clara and north San Jose ==> It is as much as your current traffic.

Schools & large lots (8k or 10k lots) are there near by Xylink HQ (Leigh High - Cambrian-95124) or Almaden (Leland High-95120) or WSJ (Prospect high - 95130) or Los Gatos (Capri Elementary School) or Willowglen (Booksin - 95125).

There are Campbell westmont high locations with large lot, good to rebuild. They are as desirable as prospect high areas.

Willow glen is famous for tree lined streets.Drycreek neighborhood with Booksin school and large lot homes are premium.

Getting 8k+ lots is tough whatever may be the condition and they are appx 1.5M or above.

Newer homes near by Rose Garden are good, but schools are not so much and lots are also limited. Traffic is cool to Santa Clara and appreciation likely good by Google complex.

In rose garden, certain part of university avenue has large lot and nicer old homes, selling at premium.



Which one is better for

  1. long term apprication
  2. school. I think 2
  3. commute to Santa Clara near 101
  4. grocery, shop, etc.
  5. Raising children


Definitely 2139-Shadow-Ridge-Ct, single story large lot. Good Luck and enjoy if you happen to buy.

The other one is next to Amaden Expressway, not desirable.


Another candidate for him.,-121.963441,37.23594,-121.965367_rect/18_zm/1_sch/


I think you are the robot for advertisement your company.


What’s worse is it’s a bot with all sorts of grammatical errors. I was expecting an impeccable sales experience.