There is no universal definition of what a “starter” home is. For SFH’s in PA I recall the minimum is just slightly less than 2M. Not sure why he made it to look more expensive than it really is…
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For sure, entry-level around here usually means some serious sacrifices. I’m not sure of John Fyten’s definition of entry-level. I do know from open houses & trolling redfin that a basic home built the 50s in Palo Alto is around $2.5m. Perhaps his entry-level is better described as mid-range?
I’ll take your word for it then MM_HH.
John Fyten’s website is old, the original is probably >10 years old. I used his previous website 5 years ago. Even though it is old, I believe he has made some updates. And the detailed description on different neighborhood is invaluable. These information I don’t find anywhere else. And I learned more from his site than from many agents who are supposed expert in peninsula.
What about this: https://www.redfin.com/CA/Cupertino/10315-El-Prado-Way-95014/unit-A/home/1683863
One to stay and one to rent. Not sure about the area, I am not very familiar with the location.
Area is good, well known Monta Vista school. Again, this is duplex…investors area
With 2.2M level income group may look nicer place for social life with friends & family, parties, privacy etc.
Has been sitting on the market for 60 days with no buyer though. Why is the rent for the 3/2 so low? Only $2200.
Yea, rent number seems low. Maybe long term tenants, who know. But if I were to consider Cupertino, seems decent given you get good school and you have control on at least one of your neighbors. Given it is side by side, I don’t mind too much about privacy. It is me looking with investor eyes to my primary home.
sfdragonboy is the landlord, otherwise should be $3500.
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So the 3/2 is $3500, and the 2/2? Let’s say $3000. Together rent is $6500. The cap rate is so extremely low it will be difficult to defend because of the negative cash flow.
I also wonder how much appreciation upside it will have? If it’s 1.5 or 1.6 that would be far more interesting.
If it is SFH, rental would be max $5500.
Good one, hanera…
Did your UC Davis get any better yet???
Rent $2200 is too low, but it should be around $3500-$4000. But, Duplex is expensive List price, may be under negotiation. Good for owners to hold as rental at property tax $2758/year. If I guess right, this may be inheritance sale as this may be tax free at step-up basis. The listing agent may know the reason.
I think students don’t like UCB because of stress and many recent crimes.
High school counsellors advise students to choose Campus first before degree, and majors. Is it the Campus life you want for four or more years? Don’t forget, it could be your best four years in life. Don’t spend them in a Campus you don’t like.
they either started renting 20 years ago or in 2009. Slow increase or low starting price.
Just saw 100K price decrease.
Go make a 1.5m offer. 
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I would probably take 1.5m, with 30% downpayment & 3000 income on one unit, your cost of living in Cupertino school might be just 3000/month
Assuming home rents $3500 (2BD) and $4000 (3BD), and $2000/month expenses, yearly income is $66000. With 1.5M cash price, cap rate is 4.4% which is high…Home is 5%-7% appreciation rate at this place.
If they reduce to 1.5 M, it goes to full cash offer. The place has Monta Vista school, highest sought Cupertino location.
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Just upon looking closer, they have 3 duplexes in the area with same asking prices and they are all reduced 100K yesterday. I wonder if it is same owner and will be interesting to see how much it goes for. Unless sellers really want to unload them quick, normal seller won’t list all of them at the same time. Here comes our theory of inheritance sale.
https://www.redfin.com/CA/Cupertino/10315-El-Prado-Way-95014/unit-A/home/1683863
https://www.redfin.com/CA/Cupertino/10335-El-Prado-Way-95014/home/1065187
https://www.redfin.com/CA/Cupertino/10271-Lockwood-Dr-95014/home/1415466