Investment Property, does this look Attractive?

Jil · February 17, 2018, 6:36pm

https://www.redfin.com/CA/San-Jose/119-Wabash-Ave-95128/home/623458

Any takers from this forum?

john · February 17, 2018, 6:43pm

I like the area. For this particular house though, I don’t understand how they can squeeze 3 units with 6 beds into less than 800 sqft. Otherwise from the numbers, this is probably the house with the best return you can find in South Bay.

Jil · February 17, 2018, 6:48pm

Looks like one house is 794 sqft 2 bed 1 bath. Other houses looks like not accounted in county records (guess work, but realtor may know) . Or they have wrongly indicated, but List agent may know.

ptiemann · February 17, 2018, 7:04pm

Probably only 1 unit is legal.
Master meters for gas and private meters? MLS has conflicting information.
Only 1 electric meter?

Assessor shows SFR, not triplex.

wuqijun · February 17, 2018, 8:55pm

Location wise, it is wrong side of the freeway. You want to stay within the west side.

BAGB · February 17, 2018, 9:07pm

It’s close to downtown SJ or even in downtown

wuqijun · February 17, 2018, 9:13pm

When I invest in the South Bay, I’d like to pick the best location I can afford. And SFH only. I care less about cash flow. I can derive tons of cash flow from the East Bay.

BAGB · February 17, 2018, 9:24pm

What’s the long term appreciation difference between CCC and SCC? If measured at the peak, I think the appreciation could be similar. If measured at the bottom, CCC could be much worse due to its volatility.

wuqijun · February 17, 2018, 9:48pm

I have some select data for you:

4 year appreciation rate (2014-2018):

Palo Alto (94306): 31%
Sunnyvale (94085): 87%
WSJ (95130): 60%

Walnut Creek (94596): 55%
Concord (94520): 41%
Antioch (94509): 49%

BAGB · February 17, 2018, 10:06pm

Palo Alto has the low appreciation rate and low rental yield. I guess Palo Alto is the worst investment from 2014 to the distant future

wuqijun · February 17, 2018, 10:17pm

Palo Alto could have risen the fastest from 2009-2013 though. That was the beginning phase of the recovery.

manch · February 17, 2018, 10:17pm

One word: Milpitas.

Jil · February 18, 2018, 12:35am

Big question mark is “Probably only 1 unit is legal”. If City later asks to change or provides notice, risk is there.

For rentals, cash flow perspective, this side is fine. Here, you will get higher cap than west side.

West side is good for appreciation, but the price will also be higher. Going forward, traffic will be bad, multiplex near by diridon station is good for rental perspective.

wuqijun · February 18, 2018, 12:48am

When I invest in the South Bay, I’d like to pick the best location I can afford. And SFH only. I care less about cash flow. I can derive tons of cash flow from the East Bay.

Jil · February 18, 2018, 1:32am

This location is like easy bay, good cash flow and growing location, esp when Google Campus comes in reality. I would have jumped into this home, but I am looking for a primary home now.

john · February 18, 2018, 2:12am

Since you’re also looking at 95128, did you happen to buy this one?
https://www.redfin.com/CA/San-Jose/2080-Heatherdale-Ave-95128/home/899111

Jil · February 18, 2018, 2:55am

I did not buy this home.

Today, I visited almost 6 homes(SFH), looking for 4 BD homes.Main purpose is primary home to reduce my commute to office. I would also like to stay near Diridon station for easy commute to San Francisco. I look around San Jose, 95117, 95126, 95128 Santa Clara, Sunnyvale…etc many places.

BAJacket · February 18, 2018, 3:25am

I thought you already had a primary around here?

Jil · February 18, 2018, 3:29am

Correct, I already have one. Current Primary, bought in 2011, will be turned into rental. This one has 45 to 60 minutes traffic to my office daily each way. Looking for new Primary.