Sherman Oaks Dr SAN JOSE, CA 95128 - Duplex

I consider this as one of the attractive duplex for better returns. This is mainly for cash flow.

Nice, buy!

All these multiplexes are redfin HOTHOME now.

https://www.redfin.com/CA/Sunnyvale/1131-Ayala-Dr-94086/home/1683957 Recommended previously !

2011-2012…there was this house by that area, 2/1, $255K, nobody put an offer on it. Too small for us we said, but when we tried to buy a property in the same area months later, they were $100K up. Too late!

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Nice. But again, SJ has rent control.

What is the issue with rent control? My rental homes (SFH) are only in San Jose ! Almost 10 years, I do not have any issue. Practically, we will not be able to increase the rent more than 5%. As the rent itself higher, I have never seen rent is raising above 3% in any year.

5% is no problem. But they may tighten it in the future. Also they may put in eviction restrictions later.

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Eviction issue already present by CA law. Even if they tighten rent % later, city range is very reasonable. Even though I do not like any undue control, city rent ordinance keeps the limit beyond limit practically not possible level.

Based on past 10 years, I really do not see any issue with San Jose rent control (even though I do not like any such control) !

Is not a serious issue because techies change jobs within 1-3 years, so they move on.

Techies won’t stay long as they are very calculative and buy their home soon.

Once a year move out is not a real issue, it will rather help you sync with market rent.

Once positive cash flow starts, we won’t even mind little expenses after every move it as we are will be used to it and tax deductible expenses.

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If you only rent to high income young people at high rent, it might be ok. These high income young folks will buy a house sooner or later, or even move to Seallte. But if you have a low income family tenant, they can stay there for generations and eventually make the rent really low. From what I see in SF and Oakland, those long term low rent cases are usually from low income families.

Maybe they should change rent control to 5 year only. If the tenant stays in a house for 5 years, they should get one market rent raise or move. Rent control should not be a lifetime limit, it has to be temporary.

I don’t believe the rent control ordinance covers SFRs.

Correct as of now. Some bAd liberal assemblymen are working to get your SFR and condos under rent control.

Exactly. So for the same outlay, I would rather not buy in Oakland and SF, instead I buy in Austin and rent out to middle income.

SJ rent control used to be 8%. Now it’s 5%. As housing price continues to squeeze voters the pressure is there to clamp down even more. Soon enough it will 3 or even 2%.

Friends don’t let friends buy multi-fam in Bay Area.

I’ve been wondering why Texas has so few poverty but California has so much. SF and Oakland at least can give you a first hand social study.

I passed on AUSTIN years ago when its price was at a 10 year plateau. Will it have another 10 year plateau?

This is true of anywhere though.

True, it was 8% when were paying $1250 for 2 bed room rent. Nowadays, Apartment rents for single bed room starts from $2000 and two bed room rent starts from $2500. Reduction in rent control will not affect. I am have few SFH rentals and none I had increased almost 1.5% or max 3%.

Even without rent control, I have not increased more than $100/year. Last year newly purchased home, I was renting $550 less than break even. The appreciation is giving me back and filing tax loss gives me benefit (as if savings for my retirement).

I am not supporting rent control, but what I try here is with rent control, we will be able to manage our rentals. We prefer no rent control area, it is irking unnecessary additional burden, but can run the life with SJC rent control.

Multiplex are great cash flow and we should not miss the opportunities thinking about rent control issue.

I do not know about SF rent control, but I am able to manage for last 10 years in San Jose.

No idea. But I won’t use the past to project the future. Austin economy is pretty diverse. However, recent growth is mainly driven by tech. Prices have stalled since mid last year after about 3 years of double digit increases, and have not shot up following Trump victory and stock market appreciation like in SV. My guess is because of many new construction. Even so, some areas have very low inventory e.g. in 78759 where I owned 2 houses, used to be a lot more.