Napa Anyone?

Anyone has invested in Napa or Sanoma? Just saw this on BP and curious.

I just wanted to share my success on a duplex I have in Napa.

I bought a duplex of two 2/1 units right next to downtown on a “for sale by owner.” The front was remodeled already and I remodeled the back to match. I focused most of the money on a extravagant kitchen. The units are right next to the new Culinary Art Institute/ Oxbow market.

Purchase Price was 640k and I put an extra 15k into the back unit.

Debt and Expenses with reserves come out to be about 3900/month and each unit rents for 2300. It cash flows at 700/Month.

In terms of equity, comps in the market are in the 740-770 range.

Cap rate 1.3% less than what you get in Black Hawk.

Mine came out about the same as Black Hawk, but I like it is closer to home and Prop 13 protection.

What was the user from Napa on redfin? He was one of the biggest bears.

Where is black hawk?

I’m surprised that Napa is so expensive. Could not understand why Napa is interesting at this price. Sac could be a better bet than Napa.

Black Hawk is in Austin (actually Pfluggerville), TX. It is sub-division there for new community.

I don’t know much about Sac vs Napa, but Napa might have better tenants demographic? Lower cost area in Sac might be in only available in C neighborhood?

Did not realize that Myo is also a TX investor. Been to Austin years ago, like the place, but did not buy when I saw the enormous amount of land and many new subdivisions. Clearly I underestimated Austin appreciation.

Napa could be a challenge to find tenant when economy is bad.

I have a TH in Santa Rosa. Bought it super cheap in 2011 and value has almost tripled. I don’t know what people do up there either but apparently there are quite a few of them… :smile:

RE prices in Austin shoots up only about 10 years ago, previously hardly move, 1% per year then is very good, since 2010, double digits appreciation. I believe is because of tech.

Housing price shot up in all the cities in TX. There might be other macro economic reasons than tech. Oil boom could have attracted construction workers and the financial crisis also destroyed new home construction.

Santa Rosa is within commuting distance to SF. I heard 2 bedroom condo is selling for 400k.

Some houses in Oakland are selling for 5 times of the price in 2010.

I really wish that I was in Bay Area (or US) in 2010 or 2011!!

Actually BA housing appreciation has lagged India and China a lot. People are talking about doubling in one year and 10 times appreciation in a decade.

We should wish to be in India and China.

But because we can leverage 5 times here, the total return might still be good. 25% down and 200% appreciation is equal to 8 times of return on cash.

I’ve been wondering whether I’ll see my house appreciating by 10 times.

If you can stomach the risk, invest in war torn countries or currently in economic crisis.

Personal safety is a must. War and crimes should be avoided at any cost.

Economic crisis? Not a problem. Where now?

I’m sure Venezuela is cheap…

In Santa Rosa condos can still be cash flow neutral, but SFH’s can’t. Duplex and multi-fam in general is a good way to cash flow in places that otherwise don’t. For now I still don’t want to touch it because of the increased rent control risks. Santa Rosa itself just passed rent control laws last year. There is also a rent freeze memorandum for one year or two, I forgot. But that’s only for multi-family. That’s the risks I am talking about.

Some people like @sfdragonboy thrive in multi-fam. I am still a bit uneasy.

mediaguru? Where is he now?

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Mediaguru is enjoying his illgotten gains…Couldn’t stand being a hypocrite any longer…Or he sold and moved to his beloved DC…Downtown Napa has been great for flipping. One on my wifes agents has been working it for a couple of years…Tahoe is better for cash flow… I bought 8 units for $660 net in July…Grosses $105k…nets about $70k…more than a 10cap…

Well, thriving is an exaggeration, but I do think ultimately it is hard to do it on condos and SFHs alone, especially in these parts where pricing is just too high and the cost of money is now going up some. Then, you may have to resort to doing things like going farther out from your immediate living area and buying in the fringe areas. Come on, isn’t that pretty risky in itself? Yes, rent control and tenant rights are risks perhaps more associated to multi unit dwellings but the tenant rights stuff hits you too. And with everyone clamoring for rent control, who is to say that jurisdictions won’t finally say ok to have it for SFHs too or for all dwellings regardless of date built? Doing business of any kind has a certain element of risk. For that “heightened” amount of risk, you hopefully get a corresponding real heightened amount of cash flow. If you do the best you can, you ask for advice from the experts when you are not sure, and you stay away from homes with 4s in the address and you should do reasonably well…

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