Last time I checked Hayward rent control does not apply if the owner has less than 5 rental units.
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Wait, if rent is $2500 and piti is $2800, thatās not breaking even, that is a monthly negative cash flow of -300! You canāt cheat by taking depreciation into account, because you donāt get to depreciate your asset on a monthly basis to offset the piti.
Like I said before, the only place in the Bay Area where you can still derive positive cash flow would be in Contra Costa or Solano counties. Some Oakland areas might still be doable but you donāt really want to go there because of the crime.
Could be. I didnāt look into it in great details.
Question is does anyone even want to walk to South Hayward BART for 18 minutes without feeling his/her safety is jeopardized.
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Hayward has JCE, but my understanding is it applies to rent controlled units only. Here is the details of Haywardās rent control ordinance.
That house has potentialā¦
I was talking to a builder. They are building around 500 (can be more) Single Family Homes across the other side of Mission Blvd., Hayward.
These are 2,500-3,100 square feet, 4-5 bed, 3 bath, 2 car, 2 store SFHs. Starting prices around $1M (realistically will be around $1.1M to $1.2M after options & lot premiums.) Many of these homes will have bay views.
And by knowing builder strategies, they will increase the house prices, in each releases.
http://www.drhorton.com/California/Bay-Area/Hayward/The-Reserve
It will take a short few years to finish & sell all hundreds of these new SFHs. After that, these hundreds of households (with income bracket for $1.X Million home) will become a community and will change the area.
After all, Hayward is in the center of Bay Area, with nice bay-weather very similar to the Mid-Peninsula.
The builder said most of their buyers work at Fremont, Mid-peninsula, Palo Alto, and Dublin.
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Youāre confusing non-financial folks.
Profit & Loss is not the same as cash flow 
Hehe, donāt want to talk about accrual concepts here. May be too much for non-financial guys.
Btw, I didnāt read the thread at all, just want to clarify your statement
The houses around Cal State seem to be selling pretty well. Many of the lower priced ones are Redfin Hot.
Well, there is such a thing called an automobileā¦ and yes there is a parking lot there (3 bucks daily now?)
Come on, where are you going to find a SFH for this pricing in the Bay? (sounds of cricketsā¦) Typically, it would be a tear-down or need a lot of work. This one supposedly is even mostly done for you.
BUY IT!!!
Walking score is millennial bullshitā¦Why walk to a starbucks. ā¦Make your own coffeeā¦or better yet get it free at workā¦Everybody drives, even in the Sunsetā¦lol
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Many people encourage here going hayward, but I do not.
The issue is location, the income of the people who resides in such location. Their income is not steady, jobloss or business loss during slight change in economy affects you by domino effect. Many people surrounding the location gets hit when economy go south, leads to eviction or income loss and finally you will home of property with no income for few months and will not be able to sell during during downturn.
These are the locations suffered heavily during 2008-2011 downturn.
See the history, it was sold 199k and now you are paying 498k. In fact, if you buy now, you may be buying at the highest price !
I do not see margin or safety esp if you are depended on this home income.
IMO, it is better to seek safety than later sorry.
I would prefer homes like this better for safety
https://www.redfin.com/CA/Milpitas/1460-Saturn-Ct-95035/home/1853555
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But milpitas was also hit by the downturn and its home value plummeted by 50%. Nowhere is safe when recession arrives. Even Palo Alto dipped a bit back in 2009. Best thing to do is to have good cash reserve to ride out the recession when it does hit.
Whole America went down during 2008-2011. Whole stocks are going up and down, none has exceptions.
Neither Milpitas, nor Cupertino, Nor Hayward is safe. It is up to the individual to see which is risk free and invest it.
Here, the hayward seller is intelligent than hayward buyer.
IMO,at this current seller market, Hayward is not financially safer than Milpitas.
Many people, mainly investors, knows the truth and trying to compete at Milpitas home !
I agree on āBest thing to do is to have good cash reserve to ride out the recession when it does hitā.
And Milpitas is not financially safer than Cupertino! However, buying in Cupertino is a financial drain on your resourcesā¦ so good luck building up that cash reserve if you own a home in Cupertinoā¦
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Yes but I am referring to the fact that @e_z said itās an ā18 minute walk to BARTā. The time mentioned here is irrelevant then if one is to drive.
A lot of millennials I know actually donāt own a car (donāt ask me whyā¦beats me too), so walking score is important to those people.
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Not owning a car is like living without a pair of legsā¦ extremely inconvenient.
I am with youā¦places like Hayward, San Leandro, Oakland all kind of fall under the same bucket.
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True, I vote for options like this only ! I see both rent+growth as total, but not rent (cash flow) alone.
This is exactly like evaluation stocks like NLY or AAPL !
NLY provides good cash flow REIT, high yield, growth is questionable (hayward home), high risk Mortgage based REIT.
AAPL, safe investment with moderate dividend and growth (Cupertino home)
There are many styles of investing. Itās like venture capital. Some like to do angel rounds. Some like to do A rounds. And still some like to wait a bit longer and only bet on late rounds of already big companies.
Thereās no right or wrong.
Hayward is a big town. There are Class A parts and B/C parts. For me, problem with OPās house is that only B/C tenants will rent that location. The A people all live on the other side of Mission. Now overtime gentrification may seep thru, but between now and then you have to rent it to B/C tenants. With no-cause eviction and rent control, I am not sure you can get rid of the tenants to take advantage of future gentrification. I guess most likely you can. But do you want to take that chance?
So here comes the differences in personalities. I donāt like to take that chance. @sfdragonboy and @wuqijun would say why not?
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