Comments on: Multifamily Dwellings: Tips and Leads to Consider

By: Krunching: A Tool for RE Investors | Redfin San Francisco Sweet Digs

Krunching: A Tool for RE Investors | Redfin San Francisco Sweet Digs — Fri, 26 Sep 2008 15:24:30 +0000

[...] property or a duplex to live in and rented one unit. I recently wrote about this topic in “Multi-family Dwellings: Tips and Leads to Consider.” But the skill set to determine what is feasible in this realm and to keep on top of it on a regular [...]

By: Susan Brady

Susan Brady — Mon, 22 Sep 2008 17:47:25 +0000

I’m so often baffled by the need to start out with something bigger than a 2/1. I grew up sharing a room until I was 12 with my brother. My own children grew up sharing a room until they were 10 and 12 (boy and girl). While its not ideal as children get this age and are of different genders, and probably we should have moved a bit earlier, it never felt too tiny or without space. With two active children, the smaller sf made it easier and quicker to clean so I could spend more time with them, and they rarely used their rooms for more than sleeping.

I suppose it is all in what you get used to, but I never want to assume that 2/1 or 2/2 or even a 3/1 is too small, particularly with small children.

By: netreality

netreality — Fri, 19 Sep 2008 23:48:33 +0000

I’m all for buying a duplex and living in half, but anyone with a growing family needs more than a 2/1 half. The rental income doesn’t make up enough of the difference to make it worthwhile.

Also, I looked at the Pine st, Menlo Park one… Very weird layout. High end features but rooms the size of shoe boxes. Seriously overpriced for what you get. It begs for an addition on the front to have a livable sized living room.

By: David

David — Fri, 19 Sep 2008 04:26:04 +0000

There are other things to consider, such as the ability to essentially “pay for” your kids education by being able to move into a better public school district by defraying the cost of your dwelling through your renters (and build a little equity rather than paying for private school). Cap rate isn’t everything when it’s owner-occupied.

By: susan.brady

susan.brady — Fri, 19 Sep 2008 02:30:35 +0000

I wasn’t thinking that they would be cash flow positive, or just an investment. I was thinking owner-occupied. Buy, live in one of the units and your monthly payment would be less because of the tenant’s rent. A way to get in the door, maybe, depending on the price of the units, down payment, etc.

By: San Mateo Home Sellers in Trouble

San Mateo Home Sellers in Trouble — Thu, 18 Sep 2008 23:31:47 +0000

I’m pretty familiar with the San Carlos & Redwood City neighborhoods. They’re nice areas, but unfortunately neither property would be cash flow positive with a regular 80% loan. Even if they were bought with cash the return is very low since rents in those neighborhoods would give you anywhere from $25000 to $36000 a year. After you take away maintenance fees you’d come out with maybe 2% capitalization rate. So if people want to make a profit, they should probably buy a multifamily home elsewhere.