What will you offer this home (assuming 25% down payment)?

Take this as real estate riddle ! Often these questions are in everyone’s mind when they see a home.

You assume your own interest rate and mortgage assumptions (arm or fixed or current rate of interest), except down payment minimum 25%.

What will you offer this home so that you hold at least 10 years as rental?

What cap rate you expect out of it, now and later 10 years?

Answer. Most landlords are not that smart as you are. :stuck_out_tongue_winking_eye:

Multiplexes are never a desirable or a hot item. I would pay no more than the listing price, if at all. Better to buy a single family home if you are looking for asset appreciation down the road. Yes it does generate better cash flow but if you really wanted the cash flow why invest in the South Bay at all.

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I was exactly thinking the same in the past left 4-plexes in hot Monta Vista area. Big Mistake, multiplexs are too good on cash flow and appreciation when the location is super good. They appreciate equally well.

Across bay area good locations, 2016 & 2017, multiplexes are selling faster than SFH now !

Wrong !!! So many are smarter than me.

I recently lost a multiplex with 17 offers !

Many folks are awakened that RE in SFBA is the best ever investment, any decline is temporary, 100% sure investment, buy before you can’t afford it.

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You mean out there? Oh yes! :stuck_out_tongue_winking_eye:

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