Since March I have watched the SFH price in Sunset/Parkside with a hope for reduction.
So far $1k a ft is average and these house are sold very fast like a week.
Here is another example
List $995k and sold for $1.36M in a week.
That’s why I feel a bit amused to read comments of houses crashing in SF from those who don’t actually live in the city.
Yes rental takes huge discount but
not the housing price
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these are mostly remodeled homes. everyone knows remodeling very expensive now.
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It saddens me seeing people throw their hard earned money in the firepit.
If someone still insists on living in SF then please rent, this is the best time to rent - incredible deals + rent control + safety net (if you lose job you get to stay for free).
Housing will crash and burn in SF - every fundamental is stacked against it. New surge in Covid, New lockdowns, Tech exodus, Permanent WFH, Filthy streets, Growing taxes, High crime. Its insanity that people are still buying RE in SF. I learnt over time that you should go where there is growth. Ride the rising tide - even fools go up in rising tide. Leave SF now!
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Are you creating FUD so you can buy low? 
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No :-). Not a good idea to catch a falling knife.
Some of that may be due to the people leaving San Francisco and Silicon Valley…
What? SF is impacting SV!
Choi plans to move to the North Bay where she can still work remotely, with the added bonus of a large backyard.
“While pressure for rental units in San Francisco may be down in some sectors, pressure for home ownership has increased,” Starks says, “especially in suburbs in the East Bay.”
Rental prices in some areas have been increasing, including Sacramento, which has been featured Realtor.com’s top 10 list for biggest rent hikes.
This phenomenon is different from previous downturn. Prices and rents in Fortress are steady while more outlying suburbs and exurbs drop significantly. Now, their situation is swapped.
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An agent in Santa Clara is pushing me to buy this multi family.
2M list price (can go little lower)
9K total rent
Was sold 3 years ago for 2.1M
What do you think?
It’s a decent price (if the remodeling is decent and there’s no deferred maintenance). Do be aware not a lot of free cash flow based on current rents. That said i think it’s about market price. You will be able to cover mortgage plus operating costs, not saving much for vacancies or major repairs. If we are at the bottom and the economy picks up, it will start throwing off more cash.
NOI?
Cap?
Assuming 10% vacancy and some maintenance NOI should be close to 0.
With 40% down and 2% rate.
+9k rent
-7k interest + principal + insurance + tax
-1k maintenance + garbage + pg&e
-1k vacancy
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2% rate? ARM? Mortgage only? I don’t see any lender offering 2% for a 4-plex
Note that NOI is almost 0 after 40% down. If it’s still a decent deal?
We have special arrangement that minimizes bank risk.
At 3% market rate this should have negative cash flow.
See my previous comment. Cashflow is 0 as i called it earlier. it’s a decent deal if market is ticking up or if you think we hit bottom. South bay 4-plexes are always low CAP rate. but it has paid off in the past. Basically this place is back to 2017-2018 prices.
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Wonder how many think we hit the bottom.
nice which bank is it?
Bank of America
NOI doesn’t include mortgage.
It looks like a pretty poor investment to me. There are better deals. But maybe not in the BA.
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Fourplexes are hard. Not a nice enough area or building to expect significant appreciation in value or rents. At the same time, not enough units to be cash flow positive early on.
Okay makes sense but don’t you think interest is included?