patrick.net

Thanks for the posts. In general I'd stay away from anything with unpermitted units, for all the obvious reasons. And I take Repro's point about problem tenants. I've seen first hand what it takes to evict a tenant, and once done, the damage that such a tenant wreaks on the property. However, I think if one is cautious you can avoid all that.

What about CoCo county? I'm not too familiar with that area, but I understand towns like Concord have decent areas with potential bargains....

The title says "investment property". You mean you don't want to live in it? Forget it.
Have cash burning a hole in your pocket? Buy a Roth IRA. More cash? Buy mutual funds in an open account (non-retirement).
The NAV may fluctuate, but Vanguard has high yield corporate bond fund paying 7% today.
But reading your post, it sounds like you are not looking for an "Investment property" but rather a place to live also.
The reason I think you used the word "investment" in the title was you still have a belief that buying in California will be a good deal in the future. Right now, because of the interest mortgage deduction, it may be. This welfare program for housing may end (it should).
Save up for a few more years and see what's out there. The foreclosures are still increasing in my area, it's becoming dramatic.
Wouldn't you prefer having that $300K in a high yield bond fund wiring $21,000 per year into your checking account? That buys some beach time in Phuket, Cozumel, Costa Rica, etc.

Yeah my title was not really accurate / on point.

You are correct, I want to buy a multi, live in one, rent out the other(s). I gotta live somewhere, and if I were to buy, ideally I'd like to do it on a property where others help with the mortgage payments. Thing is, this doesn't seem all that much of a stretch for a guy in my position. But then I realize - it's Bay Area real estate, so there really isn't much room for reason.

Love the idea of 300K in some bond fund wiring me $21K while I dive in Phuket, but I don't think I can borrow $300K to buy bonds. I can borrow $300K to "buy" RE. To save $300K would take me many, many years. Too many.

There are several cities in the bay area (mostly east bay) where $300K will go a long way and get you into a decent single family home, 3+ bedrooms, 1500+ sq-ft, etc.

Oakland
Emeryville
Concord
Pittsburg
Bay Point
Antioch
Pinole
Hercules
Richmond
San Leandro
Hayward
Fremont

list goes on...

My question to you is how do you intend to buy a house with $15K? Making over $100K, I don't think you are eligible for FHA either.

Lastly, watch your mouth with the word, "investment."
Bank hears that word and you get a sizable rate hike.

Yeah the title of this thread is really a misnomer. I put it in there not really thinking what I was saying.

Re: FHA income limits. Shows how much I know. Indeed I was thinking an FHA loan. I didn't know there were income limits on that...

If the income was not a bar to getting an FHA loan, then yes, I could get into a SFH for $300K. But I wouldn't do that. The most I'd ever pay is probably 225K. But what I really want to do is buy a building with at least two units. Live in one, rent the other. For that I'd stretch it to 300K. There may be FHA restrictions on that, too.

Anything worth a crap is, as you found, sold within days to cash buyers.

Maybe if you are willing to go further out to, say, Pitts or Antioch there may be some multis in this price range.

I've been looking in OAK for a year. Not even a glimmer of hope, really. I get alerts from a used-house salesman and redfin alerts.

There is hardly anything decent coming up for sale. If it does it is gone within days to all cash buyers with the selling realtor representing both sides.

When it comes to investments in that price range, you really have to be on the ball. I've been researching this (specifically in the East Bay since I live & work here) and have found that anything worth a damn has multiple offers from investors within days of being posted.

That's not to say it's impossible. If you are really interested in this, you are just gonna have to get out there and pound the pavement to get a good feel for the market at the present time. With historically low interest rates and attractive rent:price ratios, the investment market has become very aggressive. And because there are so many cities in the east bay where $300k will go a long way, it's opened up the flood gates for a new age of "commoner" middle class investors who are in the sub $100k salary bracket.

Best of luck

Get a roommate. There are numerous colleges here and there and you can get a boarder 1. nerd 2. mousy quiet girl
Buy mutual funds with that extra dough.

Nomograph says

According to some people here, you will be able to buy a house on the peninsula for 1975 prices if it wasn't for big bad Bernanke.
I wouldn't hold my breath.

Actually its 1997 plus inflation 30-35%... as history keep pointing out.

I have been in Investment property for near 20 years as many know. I am going to upload this lil picture example again. Then maybe many of you will understand. Why people are so upset now. They have been swindeled. Really badly to.

You simply divide the total interest paid by the original principle. Thats what you paid in interest on that loan.

Big Paulie from the Soprano's wishes he could get this kind of vig on a loan. That killer interest is also why the loan swindler's own everything down the fucking block and back again. It's stealing of course. Swindeling, a huge packet of papers at closing and a slick loan conduit that works on commision. Most people don't get this stuff and of course the "lenders" or "swindlers" really don't put it ON any of their financial do gooder programming.

Of course they would put Big Paulie in jail for loan sharking. However the mega loan swindlers pretty much own Greece and Italy now. Not to mention more than likely your government.

By the way that little debt service constant in above photo is interesting.

IN RUSSIA They don't amortize loans. Or amorta them. They use simple interest. You don't start paying interest first. The first 10 years on the above pictured fucking killer loan is pure interest as many of you know. By the time some idiot can pay it off. It's nothing but principle. Simple interest is more like what you pay on an auto.

If this was really good. The builder would make and handle paying back the loan. Not the fucking loan swindel outlets. Apparently some are really into debt slavery. I have plenty of cash to lend. Come shine my shoes junior.

Another words whats in the above picture. That kind of loan sharking is outlawed. The builder simply builds gets a down payment and the person that gets the home pays back with no interest. If that person defaults well he simply takes the house and sells it again. Gets another down payment. The defaulted homebuyer looses all. Its a good deal for the builders. For the homebuyer to. There is no interest involved however. Usury simply means to use beyond a certain point. True the builder would be the lender. However there is no keeping around a person for 30 fucking years to do his bidding in life.

WOULD I WALK AWAY FROM A DEAL LIKE THE ONE IN THE PICTURE? HEY, DOES THE AMERCIAN GOVERNMENT LIKE BEING SOMEONES PRISON BITCH. The day you walked away from the above pictured deal or similar was the smartest day of your life practically. If your family or friends have any doubt just run the numbers and show them. If you want to stick around and get further into the swindel be my guest.

I whopping $15k in savings and looking for $300k investment properties? And people wonder WTF is wrong with the real estate market and our economy in general?

E-man says

However, with only $15k in savings, you're gonna have to pay a premium price due to financing with an FHA loan. FHA financing is the last offer seller looks at if you know what I mean.

Doing some more research, it does not look like FHA has income restrictions. Consider that 3.5% down on $300K on an FHA will mean $10,500 down payment + closing costs. The closing costs will likely exceed your remaining $4,500. I think you will need >$20-20k to be safe, or lower the purchase price.

BayArea says

Consider that 3.5% down on $300K on an FHA will mean $10,500 down payment + closing costs. The closing costs will likely exceed your remaining $4,500. I think you will need >$20 to be safe

Seriously? Shouldn't that be "you need 20k PLUS another 50k or so in the bank" to be SAFE?

Really? Spend every cent of your savings on a down payment? REALLY?

Tude says

Seriously? Shouldn't that be "you need 20k PLUS another 50k or so in the bank" to be SAFE?
Really? Spend every cent of your savings on a down payment? REALLY?

Tude, I am with you on this one, certainly. When I say "safe" I am not talking about safe from the perspective of the OP's best interest. I am talking about "safe" in terms of where the bank will be willing to work with him. Of course stretching every penny you have is a terrible idea.

From what I have seen however, savings reserve is typically NOT a requirement to purchase a home. Steady income is. I was also going to say good credit is as well, but FHA allows for a way around that...

E-man says

BayArea,

You can always go with a no point, no cost loan, which should take care most of your closing costs. The points will get tagged onto the FHA loan.

A friend of mine recently sold a home to a Veteran with VA financing. The buyer has $2k in his bank account and that's it. Purchase price was almost $400k. Of course, it was over 100% financing in this case. The deal, of course, went through with no issues.

Sad to say, but too many people tend to put road blocks in front of them. I help RE agents putting deals together, but most of them, as others, find a way to put road blocks against these deals for god sake crying out load. I'm glad you're on the right path. See my signature. :-)

Success isn't by chance, but by choice.

I don't have much experience with VA loans, but from your description above, it doesn't sound like much is needed at all.

With a standard FHA, I don't think you can get around the 3.5% down requirement.

Good God......

coolerinthefog says

After blowing cash on a lot of great dates,

what kind of great dates?
how do american caucasian guys treat their dates great?

chip_designer says

1. Japanese women:
First date: She's shy, so you don't get to kiss her at all
Second date: She'll take a bath in front of you and let you
smell her panties

HAHAHAHAHA

chip_designer says

Any truth to the following : it sounds true =)

Here's what happens when you date women:

i figured that was too clever to be written by you: http://www.funehumor.com/fun_doc5/fun_0577.shtml

chip_designer says

Any truth to the following : it sounds true =)
Here's what happens when you date women:

If you must ask about different kinds of women,
who better to answer than Mick Jagger, hell he done
them all for decades.

http://www.youtube.com/embed/Y78mv4cK1CI

I have dated asian women (no smart guy not body massage).
I find them l-i-b-e-r-a-l. Oh the city night life. In loves with it. I get along with women outside my little racie. In truth better. Odd how that is. I adore liberal (mostly independent as I have seen in their feelings) women. They are more fun that I have ever fucking had. Opposites attract?

clambo says

Right now, because of the interest mortgage deduction, it may be. This welfare program for housing may end (it should).

Perhaps. But I believe it will push many homeowners currently living on the edge over it. I predict another spike in Foreclosures if the mortgage interest write-off is eliminated.

ArtimusMaxtor says

I have dated asian women (no smart guy not body massage).
I find them l-i-b-e-r-a-l. Oh the city night life. In loves with it. I get along with women outside my little racie. In truth better. Odd how that is. I adore liberal (mostly independent as I have seen in their feelings) women. They are more fun that I have ever fucking had. Opposites attract?

OP here. Thanks for the comments everyone.

Tude - slow your roll, boss. The miasma that is CA RE didn't happen b/c I posed a legitimate question on this board. Remember, I didn't create nor even participate in the casino (at least directly). Which is why the post in the begining

Oh and by "great dates" I guess I meant a whole lifestyle of going out a lot, spending money on dinners, bars, clothes, vacations. Good times, all. But I've developed a new fondness for frugality...

Chip designer - As long as we are stereotyping, I suggest you meet and date a latin woman. Best there is, IMO...

Don't they have these in California?