After having interviewed a dozen or so real estate investors who successfully transitioned to multifamily investing, one thing has become clear: Your first deal is the ONE THING that changes everything. After having done that first deal, they were able to replace their income with the next 2-3 deals — and within 3-5 years.
Don’t believe me? Then check out Drew Kniffin from Minneapolis-St. Paul. Drew bought a small 4-plex with a friend, and then they bought a 5-plex together with their property manager. That gave them the confidence to look for larger deals; they pooled their resources, refinanced one of their previous properties, and closed on a 32-unit building in the Twin Cities.
Dude, I and many others here have said multi-family is going to be ultimately the way to go (rent control or not). Sure, more headaches but more potential for massive cash flow for you too. Where have you been???
How are you going to buy real estate in Sacramento or Vegas or Austin? You will need to travel and spend time there which will require $$. How are you going to manage these rentals? You’re going to need to hire a property manager who charges you $$. How are you going to sell them eventually? You’re going to need to travel there again ($$) and will have to oversee some contractor to fix it up ($$).
Bay Area has everything real estate has to offer. Why buy real estate elsewhere? Saves time, hassle, management headache, and most important of all, $$!!!
Look, The Big Apple and the Fab 7x7 have rent control and yet both RE markets are as resilient and prospering as any other town (generally speaking, long term) if not tops in the country. Investors and owners obviously work through it (rent control) and still manage to do ok if not well. Piece of cake? Of course, not. Mines all over that minefield, just waiting for you to step on. But there goes that saying again, no guts, no glory. And as you have eloquently stated, rent control will soon cover the land anyway. So, what are you going to do then when that does happen? Embrace it now, so that you don’t miss out on any more decent deals that may come along. Or, you’ll be sorrrry…
Rent control will cover the entire Bay Area, at least the pricey parts. No doubt. Whether it will cover Central Valley I am still thinking it over. It will not happen in Florida and Texas in my lifetime.
Different people excel in different things. For people who don’t mind rent control and can make it work? All the power to them. I don’t like to deal with that, so I choose a different venue. It’s a big world, brother. Read that article. Even people in West Virginia make it work with real estate there.
What you have compleeeeetely forgotten (conveniently) is that all those other States look to places like Cali and the Bay Area for many things including laws and ways to do things. Why wouldn’t those places consider it (rent control) as well when there is certainly a large renter class there as well as lower income folks? Wouldn’t those ingredients if you will breed interest for rent control??? Of course they will.
This is fixed upper redwood city, slightly traffic connecting road, but fine to rental Multi family. RWC is growing as it is near Stanford and other Tech Companies. With 25% money down and may be another 50k (max), you are getting this good deal. Rent is bound to go up in the long run. This has both cash flow and appreciation potential.
No, they are connected via garage. But I will admit that I’m surprised no one bought Orchard yet. They did a very nice job on the flip at least the back half. I wasn’t able to see the front half. Only thing is that there’s no backyard. But I think there are three garages. Or maybe they turned the front garage into living space? If so, I’d have to give them a B for not having removed the door.
I wouldn’t necessarily agree. If Orchard/Wheeler are considered their own little neighborhood, and you don’t throw in Carlos/Roble/Nueva, then I’d say that they are the same, but Orchard as a street is better as it has way more privacy and a lot less traffic. If you’re going to throw Orchard/Wheeler in with everything up to 101/Woodside, then fine, but that’s kind of like throwing Selby Lane and Carlos into the same neighborhood too.
Orchard area has to much density, too many rentals, too much multi family, no sidewalks…My office was right by the KFC, know the area well, hasn’t improved much since 1986 when I opened my office…Of course I amazed at the prices on Oakwood, which was a dog race track in 1909…Close to Atherton. …