Considering an investment property in Bay Area, where I currently am. Aiming for passive income that pays for itself at the moment. Need some guidance on where to start to check the feasibility, condo or sfh, etc..

like
Posting as :
works at
You are currently posting as works at

Bay Area (and other HCOL areas) rarely math out when you compare renting vs buying. Meaning you’ll spend $1m on a place and have monthly liabilities of $9k to $10k (at current interest rates) but only be able to rent it out for $5k, meaning you’d be cashflow negative each month. Also, California is not a landlord friendly state, so if someone decides to squat, you’re up against a very steep hill (and a lot of financial pain) to get them out. I’d highly suggest looking into owning investment properties in more landlord friendly states (often in the Midwest or South)

like

Chicago is not representative of the midwest. Being a landlord is great in places that are not liberal shitholes.

There's a ton of more detailed information out there on sites like BogleHeads or YouTube. They may also provide some resources for crunching numbers.

Generally, you're looking at how much will it cost to get into the deal (down payment / closing costs), am I doing any rehab (budget and short-term financing / holding costs), long-term financing and expenses (management, maintenance, CapEx, Vacancy, taxes, etc). Compare the costs against rental income to see ROI / cashflow.

I can help as I am loan officer licensed in CA. Shoot me a dm and I can go over what payment may look like and how much you could afford.

Related Posts

Best website or realtor o company or way to find and buy a condo in NYC(Queens, Bronx or Manhattan), 2-3 bedroom.

like

Looking to acquire Practices in the greater Providence, RI area. Message me for a discussion. Deals are 95% cap gains and not ordinary income.

like

My portfolio has been stagnant for a week now. Last few times this has happened, market has tanked. Anyone else feeling we’re at an event horizon soon?

like

Anyone else into Bank Bonus churning?

like

Got a loan rate for 3.375% for an appt. This seems a little to high. Thoughts?

like

To take advantage of the next big economic downturn, should I set up a Robinhood or Charles Schwab account?

likehelpful

Hi fishes, need urgent advice. How is the HDFC Index Sensex Plan? I have invested 75K but it's in loss as all others. Should I continue to average it out or stop investing in it? The loss is higher in this compared to other funds.

Serious question...should I sell or hold my Dogecoin? It makes up half my portfolio now and made me $40,000 this week. Think this is as high as it will go or is there still room to grow?

Post Photo
likefunnyuplifting

Is 80k cash + 20k company share a good deal for a junior dev role in the bay area?🙏

like

Newbie trying to get a better understanding: is it better to max the 401K or just hit company 401K match and max Roth IRA first?

like

Hi IBM sharks,
My friend received bluepoints, what's the conversion rate to rupees? Can we redeem it as cash components?@ IBM

like

Does anyone know how to declare in my individual tax return, RSA and Stock Options from a US Company that I have? Non exercised yet.

like

Does anyone have any good mortgage broker recommendations that will help find a way to not pay PMI?

like

Anyone holding Hyln for long term ? What did you buy it for and what is your price target ?

like

Looking to transition to a new career, possibly to SWE. I have a physical science background with some student loan debt. Before I dive into more student loans, I wanted to check out some Software Engineering boot camps....

Any recommendations? What's your personal experience? Are they worth paying, or is college the way?

likeupliftinghelpful

Need help looking for a 1 bd, I’ve tried domu/Zillow but none of the options are appealing. Should I be using a realtor?

Budget: $1,200
Areas of interest: LP, Lakeview, Wicker Park, Old Town, Streeterville, West Loop, River North

like

Anyone have any tips or ideas on how to collect money owed from a client? In a few months it’ll be two years since the debt was incurred. We send monthly reminders of the bill. It’s a significant amount (well to us) and the client is now starting to open up and telling everyone about the situation that we helped to resolve.

like

Current Tenant Rent: $1075, Monthly Payment: $400 (with property management), Initial Repairs: $2-5K, Down Payment: $12K

At surface level, do these numbers check out?

like

Can you set automatic investments in TD Ameritrade? Looking to DCA at the start of every month into index funds without having to manually buy. Thanks!

like

How many index fund stocks do you own and which one? Deciding between VOO and SPY and wondering if smart to just put some of my monthly income into that. Need to put that big law money into good use!

like

More Posts

Can you negotiate with apartment buildings on rental units? If so, how much wiggle room is there typically?

like

My mom has been sick for nearly a week now (fever, fatigue, nausea) but isn't able to get help or tested because she doesn't have respriatory symptoms...yet. Our numbers are definitely underreported.

likesmart

Hi Fishes, Is the office final location finalised yet for pune? I am going to join in a month..

like
like

Current Tenant Rent: $1075, Monthly Payment: $400 (with property management), Initial Repairs: $2-5K, Down Payment: $12K

At surface level, do these numbers check out?

like

Can you set automatic investments in TD Ameritrade? Looking to DCA at the start of every month into index funds without having to manually buy. Thanks!

like

Anyone there ?

like
like

I recently joined TW some months back and I dont know why I think have made a wrong choice for myself. I am feeling like I am lost. I am not able to fit in in this high expectations environment. I am used to working in a place where we always worked by taking help from others and here it is sort of assumed that we would be knowing everything right from day 1. Also there is no pairing in my project. Any suggestions on what should be done would be welcome.

like

I got job offer in Philips engineering solution team,Pune
Any one has idea about this function?

Philips

like

Hey new members,
If you have joined recently, please be active by posting your views or questions so that we can grow this bowl

Hi Guys,
Do you have any idea on TE-DL-CloudEngg Team in
KPMG Global service like WLB and Projects.
If you have any details please share . My Joining is in next week.

like

When you leave your firm, how does the PTO get paid out? Direct deposit? Check? What's the timeline?

like

I have a experience of 7 years in digital media.
Currently managing a team of 20 members, handling 50+ clients.


I started my career in the same company i am currently working.

It was a start up and i started very low.

Now I am currently getting 7.8lac per annum.
I am being underpaid and i know it.

I am sure there is alot of opportunities out there.

Just wanted to know, for my experience. What kinda salaries can I look for?

Is the SAP practice in India at PWC any good?

like

Hello Fishes I need honest feedback from you people. I have three offers for the role of Scrum Master (Yoe:10.2)

1.
Philips : 30 lpa
2. Capgemini: 36.5 lpa
3. Wipro: 37.5 lpa

Should I negotiate with Philips or suggest me which one would be better choice!

like

Does ibm GBS send hacker rank test for recent candidates(java)?I joined 2 years back at that time there was no test at that time.Any one has an idea?

like

Hi Fishes,

Please suggest :

Data Analytics - 5.4 YOE | 11 LPA CTC

Skills - Python, SQL, Power BI, Azure

Have one offer from EY GDS - Tax GCR - Data Analytics - Senior with 17 LPA fixed + min 10% variable VPB.

Need views on this offer/package & opportunity.

Suggest your views. @EY

like

Hi! How long is the bench duration here? Is there lack of projects?

What are some companies (big and small) working in interesting neuroscience/neurology related projects including pharma, med tech, ect.? How do you all keep up with neuroscience news to stay in the know?

like

Additional Posts in The Real Estate Bowl

Finally got an offer accepted on a home I love! (In DC) Spent months searching. Next thing is getting to the closing date.

Now I feel super anxious about everything going thru and getting the keys. How difficult is that process of getting to close, have heard the underwriting portion could be a headache?

like

Now that the rents are going higher and housing is not affordable. With wfh option is it good idea to love to ranch with house?

Anyone here invested or opted as primary living place outside of cities?

Cheers

like

Anyone punched out of state 4-10 unit apt building? How did you find the listing?

like

I thought the answer is yes but now double checking. Can we write off the interest we pay on our primary residence mortgage?

like

What's the best city in UK to buy a buy to let property, with best returns?

like

Current Tenant Rent: $1075, Monthly Payment: $400 (with property management), Initial Repairs: $2-5K, Down Payment: $12K

At surface level, do these numbers check out?

like

Hi guys! Looking to learn about real estate investing! I am a senior in college graduating with a degree in finance so I understand certain aspects, but am looking to learn more on my own about real estate specifically!

What books would you recommend I read?

like

I am moving to Charlotte, NC for a new job. I currently live in Portland, OR and have a single family home here. With my income, and current mortgage, I can afford a 350k house I’m Charlotte with about 10% down. What are the pros and cons of buying a new place in Charlotte and then sell my house in Portland?

like

Is a sloped floor of 1/2” over 10’ noticeable? I have to make room for conduit and cannot trench in my current place

likesmart

I'm early in my career, managed to save $30K to invest, and want to get my hands dirty with a rental property without too much risk (e.g. no HML/flipping). It sounds like that's a tall order in the NY/CT area given the prices, not to mention whether I'd be able to get a mortgage on anything below $100K, but I figure I'll give it a shot anyway. Any advice on what you might do in my position? Am I being crazy with this idea?

like

For people who recently refinanced, bought or is in the process of buying a new home, what APR did you get?

like

I'm under contract for a new build in progress that won't be done until much later this year. I fully expect interest rates will be higher than what I originally estimated. I may or may not try to lock in a good rate early, but I'm planning on renting it out and this throws a bit if a wrench in my margins. I can take it financially, but wondering, If I absolutely needed to get out of buying it, what recourse do I have? Or could I go ahead, and refinance later (who knows rates at that time...)?

like

Any potential flags/benefits for dual agency? My agent and the seller's agent work for the same company.

like

My assumption is that one makes money in RE with leverage. So, would you never let your equity in any given property get above certain% (I.e re-leverage and invest elsewhere) or would one eventually want to own a property outright?

like

I would like to learn more about development and real estate. Can anyone recommend any books or courses that you think are informative. Eventually I would like to own a few apartment buildings, but I know there is a lot I need to learn 1st. Any advice appreciated. 

like

Interested in development. Any recommendations on how to get started? Are there any organizations that will fund any part of a development project?

like

From a financial standpoint in this market, which would be a better approach in Austin -

1. Buy a ~8-850k house that meets most of our ideal criteria (size, schools, interiors etc) to stay long term

2. Buy a ~5-550k house that’s not ideal with the plan of moving into an ideal home in 4-5 years when kid is ready for school.

How easy is it to get a mortgage for the second home?

Household income - 300k

Happy to add more details as needed

Thanks

Does anyone have experience managing an out of state property yourself? Are there any tips/services you use?

like

For anyone that has bought a townhome from Lennar, are the walls fairly well insulated for sound?

What, if any, were your main complaints?

like

How might I start to evaluate whether or not it’s worth it to keep my current primary residence and turn it into a rental, instead of selling and using the cash to roll into the next down payment for our next home? Currently in our “starter home” and thinking to upgrade in a few years. Some figures to consider for current house - 299k purchase price, 240k left on mortgage, could prob rent for 2250-2500/month, or sell for 375k. It’s in a desired school district, but in the “city” tax district.

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal