Whatever I hear from my company, it comes from country level, then state, county and city level compliance that forces area by area WFH policy.
Santa Clara has not lifted/relaxed. Even if there is a federal level mandates are coming, county level will force the companies to continue the policy.
Basically, all cubical must have 6 feet by 6 feet, glass doors to block one another, centralized thermometer to monitor each employee, identify and segregate affected employees, clean the entire row/space once employee affected…etc lot of restrictions.
If Covid affects (air borne) , pre-existing conditions (diabetic or lung or heart disease) may result into death of employees/co-worker. It is easy to sue and get compensation from big companies…etc as county rules protects the local employees.
Do you guys think Bay Area outside of SF is better than SF in investment spite of 20% drop in SF prices and 5% increase in Bay Area prices?
It feels like SF is now cheaper than Bay Area premium neighborhoods per sqft. People who cannot afford SF used to live in Bay Area and now that prices have inverted won’t SF be a better investment?
I think its showing like this because only high quality properties are selling (low quality, vacant ones are sitting). If you see carefully you will find that many properties are listed at 2015-2017 prices and still not selling in SF. BA is different story.
Premium area BA homes seem cheaper than premium area SF homes, sometimes way cheaper, which is VERY STRANGE.
No it does not. It is clear that more higher priced inventory is coming to the market and getting sold much more than the lower end ones. This is expected because people staying home need more space and higher quality now.
My research on a number of properties seems to indicate that real prices in SF has come down a lot to 2015-2017 levels but not at all in BA. My original point was that SF being a global city will always be more prestigious and desirable than suburbs so SF seems like a much better investment than BA at the moment because it seems cheaper than BA…
I agree there are more deals in SF than elsewhere, especially in condos. Which angle are you coming in? SF has one of the tightest regulated rental markets in the nation. I personally won’t dare be a landlord here.
If you are already cash flow positive on a multi-family investment in spite of say 25% vacancy assumption, then why worry?
If there are many units then statistically only a small percentage will be stuck with low rents, no? Eventually tenants tend leave or die and rents get reset to market rate. There is only upside if you are cash flow positive on day 1.
If you need a mortgage, chance of finding a cashflowing multi-fam in SF is low. I just don’t like dealing with rent control. It’s just me. We have a number of investors here who deal with it just fine.
There are quite a few big multi family ($5M+) which are cash flow positive ATM and would remain so in spite of adjusting for another 20% vacancy and 10% rent reduction. And yes this with 60% loan… They are still sitting for several weeks - clearly I do not know something that other investors do…
Not sure if this has been posted here before. This is dated Oct 13th, so my guess it’s not.
High-tech hubs and pricey markets in the bay area — San Francisco, San Mateo, and Santa Clara counties — are seeing the largest declines in rents across the board, along with Manhattan, Boston, Seattle, and Washington, D.C.
Fast-growing cities (e.g. Rochester, NY; Colorado Springs, CO) and spillover markets (e.g. Tacoma, WA) are seeing the largest increases in rents compared to last year.
But let’s start with the basic question: Are you going to be a landlord or an owner-occupied?
If a landlord, hell no! Do not buy in SF unless you enjoy being treated like an evil money-grubbing millionaire who can afford to see no more than 1% rent increase and have to pay renters thousands of dollars plus court fees to relocate them should you need to sell or move in there yourself.
If owner-occupied, is it because you need to be at a job in SF? Do you have kids you want to send to a public school system that might send you 1/2way across town and has banned Algebra I before 9th grade? Do you like cold and foggy weather? Forget it–move somewhere else commutable by Caltrain.
I m really wondering why If you are already cash flow positive on a multi-family investment in SF on day 1 in spite of say another 25% vacancy assumption, then why worry?
If there are many units then statistically only a small percentage will be stuck with low rents, no? Eventually tenants tend leave or die and rents get reset to market rate. There is only upside if you are cash flow positive on day 1.
People don’t normally consider Redwood City to have good schools, but North Star is pretty good, though you do have to test in, and I’ve been impressed with Woodside High School which allows math kids to take Canada colleges post-HS math classes on WHS’s campus for dual enrollment credit. Sequoia HS has an IB programme. We ended up with 5/4 for $1.8M. Still probably that price now.
That said, it’s not a remodel, but three of the four bathrooms have been NICELY renovated, and the upstairs is new enough. Kitchen still needs to be redone.
