Ok, so enterprising RE agents have presented me with some interesting properties on the westside peninsula from SSF to RWC/Woodside that has me considering at the moment the selling of my Fremont home and doing another 1031 exchange. This would allow me to have a property that is closer to manage, not that the Fremont home has required much attention to now.
So, would you trade a home in Fremont for one that is comparable in SSF or RWC? These areas seem to be doing well economically, perhaps not as great as Fremont but still on the upswing. What I get out of it is potentially more rental income by having more units (duplex or single fam + legal inlaw) and again closer proximity.
Or, should I hold and remodel the 3/1 Fremont home to say a 4/2 which should make it maybe 1M+ and then decide to sell or exchange it to a larger pool of possible properties?
Some of you know the whereabouts about my Fremont property, so if you are interested and have a piece of property that is on the westside/peninsula to exchange for, give me a holler. We can do business over chicken wings…
I’ll admit I don’t follow those cities super close, but my impression is Fremont would not be eager to pass rent control. I think SSF would and RWC could too. Fremont would seem least likely of the 3. You should wait until after the November vote on rent control. I think you’d really regret selling a non-rent control property for one that ends up under rent control.
You have a nice appreciation, appx 80%-100% benefit over the purchase price.
Unless you see considerable benefit in cash flow from RWC/Woodside home, which I really doubt at current price, there is no point in exchanging as you need to pay additional property tax for new buy (forever holding term).
IMO, The Fremont one is better to hold. If possible add one more bath, that is all to do now. You save 4%-6% on selling expenses.
If you find it hard managing yourself, employ a PM who can take care of it. IMO, Fremont is grown up well and growing faster.
See @sfdragonboy, you don’t need to spend money on that financial advisor. I’m sure you’re not going to get better advice from him than what you can get on this forum.
Appreciation is higher in RWC. I know this firsthand. Rent increase and appreciation outpace F. North F has zoomed quite a bit over the last year or two, but the rest has been slower.
I have been in RWC for sometime and I see the appreciation effect.
He has to spend 6% (assuming 4% commission)
His appreciation is 80%-100% from purchased price.
His cash flow is low current home (4%-5% yield, not cap)
Assuming he is going to 1031 exchange, he need to consider property tax changes.
If he gets better opportunity to buy a duplex or cash flow property, he has to calculate which one is better.
Agreed that he will have to endure some costs to make the switch, but that will eventually be paid back over time. The only one that is problematic is the property tax.
SFDB discussed an addition awhile back. If you can add a bathroom in the existing footprint, it’s a smart move. If you can’t, I wouldn’t bother.
Geez, lunch time and the responses!!! Thanks, guys/gals!! Ok, @wuqijun, you’re probably right, save the money on the financial advisor and ask you cats…
Exactly, @ww13, that RWC appreciation or the thought of it has me wanting to make the move. Yes, Fremont is no slouch by any means and if I can be that much closer even better right??? I think if you can get ANYTHING in RWC for a decent price (Class A or not) one should grab it fast…
@Jil, I am too embarrassed to tell you how low that Fremont rent is. Yes, I plan to raise it soon. Currently $2,200… What, OMG!!!
Great points, everyone. Yeah, maybe hold due to lower property tax basis and just expand Fremont some. That was an idea before. These damn RE agents are trying to drum up business by making me drink their Kool-Aid that’s why. Make them stop!!!
