Bay Area, California market - Posted by Mike

Posted by Mike on February 07, 2006 at 13:25:00:

I’m finding all this out. I’ll post in few hours.

Bay Area, California market - Posted by Mike

Posted by Mike on February 06, 2006 at 22:48:50:

Hello, I’m a beginner investor and I’m planning to invest on a brand new two story three bedrooms loft that comes with a retail space on the first level. The price is about $650K. With the recent scare of housing price going down, does any one feel this is good investment given that price?

Mike

Re: Bay Area, California market - Posted by buying

Posted by buying on February 07, 2006 at 12:02:34:

Ah yes, from out here out in cyberspace that looks like a great deal! Better buy it immediately!

Just being sarcastic—nobody can really know if it is a good deal or not without the FACTS. What facts you say? I’d start first with its current value based upon solid comps. Then a rental/income review for each unit. The property’s condition. Your purpose for buying. Financing. Etc.

You don’t buy bargains based on FEEL. You buy based on NUMBERS.
A good deal is when you immediately profit upon buying-- meaning that some of those numbers can go right into your pocket if you turned around and sold it or rented it out.

Re: Bay Area, California market - Posted by Gebe

Posted by Gebe on February 07, 2006 at 24:03:23:

My quick math would suggest with a reasonable loan (30% fixed 20% Down) the property would need to rent for $5200 a month to cash flow.

Re: Bay Area, California market - Posted by whyK-CA

Posted by whyK-CA on February 06, 2006 at 23:42:29:

Tell us more about how you are planing on making money with this property.

Re: Bay Area, California market - Posted by mike

Posted by mike on February 07, 2006 at 24:31:11:

Thanks for your reply. Actually, I’m planning live in the loft and rent out the retail part for small business. I decided to live in the loft for at least two years to avoid high capital gain tax. This is based on my amateur experience. If you have better suggestions, I’m eager to hear them.

Re: Bay Area, California market - Posted by Brian (UT)

Posted by Brian (UT) on February 07, 2006 at 09:18:02:

Mike

Not enough detail, sq ft? what city and section? able to enter living space without using retail space? current rents for a retail space in that area.?

I represented a spec builder who built these kind of spaces in the late 80’s and early 90’s in SF, Oak, and Berk. and at that time the trend was for owner users of the spaces, in some of the the units the buyers managed to rent out some of the work space or share it but the rents were lower than market, so I would really check out demand for the work space and see if the numbers work.

Brian