If it’s just 2 years, you’d be lucky, 2 years at 7500$ makes way less than the price discount this got.
Hawthorne sold for… 3.35
Panchita sold for… 3.1
960 Parma wanted 6 year rent back for free and money immediately to take care of the aging person who was living there .
Most people would pass on such a
Deal and only CASH-CASH can buy such a deal. No trandiional or hardloney lender would finance such a deal
You could probably actually do investment loan. Not a bad deal either.
Very large lot, the only downside is a bit busy street. The house would probably rent for 6-7K max given its condition (i assume it’s not great), 6 * 12 * 6 = 420K presumed future income at constant rent. They bought for 2.3M. not too shabby.
Stopped by los altos downtown, aka dead town. Almost no one is outside.
Huh… i also visited Los Altos downtown Saturday morning. It was lively yet peaceful and i really liked it.
There was huge long line in my fovorite bakery.
What time did you visit?
If the seller dies before 6 year term, can the buyer occupy the home then?
If the seller can live for many more years, she would not care much about 6 years of rent free living.
around 3-5 maybe? Dont’ really remember.
Yes, probably. I would totally buy the place, this is the second deal i am seeing, and they have both been heavily subsidized.
Will your wife approve this deal? You can’t live there for 6 years so it’s apparently an investment property
With the recent price stagnation, not so sure. but otherwise, you are getting a couple hundred thousand discount. Not too significant, but not too shabby either.
This kind of deal suggests that many retirees prefer to stay put and live in the same house forever. So housing supply is low for desirable places for a reason.
This can be a great deal for a 24 yo. He can buy this and rent in SF. When he turns 30, he can move down here to start a family.
Or as an investment for sure. I am still not clear on the full numbers though. Couldn’t find a recent comp on covington with 0.3+ acre lot size. Assuming 3M, this is 700K discount. 7K/month rent, 6 years = 500K already. No rent increase is assumed. Then there’s tax implications if the buyer decides to sell… so gets trickier?
I wouldn’t buy this as investment. You can buy 10 similar houses in Austin and collect a huge amount of rent. And Austin appreciation is higher than SF
This is los altos, appreciation was about 25% last year.
What’s the rate for the last 30 years?
probably about 7%
BABG is right, never consider Los Altos for investment property like stocks, getting 25% up…Read about dot.com period and RE-downturn period. For investment property, cash flow is very important to sustain.
For rental investment, go for multiplex like 4 plex or more and at low cost locations.
I would prefer in this order (look at Gross Rent Multiplier).
Appreciation may not be that great, but cash flow is too good.
If you need appreciation and cash flow, go for this kind of homes
The above are just samples for you to look at it.
Seems well bought. Do flag lots usually go for a discount? I’ve always appreciated the added privacy. Surprising to me.