EPA wrote:
In 2009 I bought a property in East Palo Alto for $220 K (currently owe ~185 K on it). I've fixed it up and now estimate I could could sell for 350 - 400 K. The property has been slightly cash flow positive however it's been a headache and is dated. My plan is to free up the equity by selling the EPA property and buying a new townhouse/condo (built in the last 10 years) rental in Las Vegas area with cash (~100 K) and use the rest as a downpayment on a larger SFH in the Salt Lake City area (which should be cash flow neutral).
I've chosen the LV market because I already have a house there and am familiar with the market. I like the SLC market because I think it is poised for significant growth (and wouldn't mind living there one day).
Am I making any big mistakes here? My thought is that I would basically be increasing my cash flows because I would own the LV property outright. I would also likely have a much nicer newer property in Utah that I could should be cash flow neutral on (and maybe even have some capital appreciation).
Should I wait until summer to see if I can get more than $400 K for East Palo Alto property?
Does anyone have any good resources for 1031 exchange information?
Your question is basically if you can time the market. If you read the forum, we have bulls and bears. So many bull-S... and so many bears
As you can witness, appreciation is on its way from San Francisco to San Jose, there's no town left that hasn't seen an increase in prices. But the stigma of EPA still exists and you won't get people with guts to rent there. I lived in EPA for quite 10 years and I know the area pretty well. I rented a room from 1998 to 2004 in this guy's home and never had any problems with the thugs around. I basically was a friend to them by not showing signs of cowardice.
Lately I heard the old EPA is coming back. Shootings and so on. So, if you want to hold on to that property chances are you won't get more than what you're getting now. The stigma of the old EPA still lingers around.
Michelle1x wrote:
buyinghouse wrote:Lately I heard the old EPA is coming back. Shootings and so on. So, if you want to hold on to that property chances are you won't get more than what you're getting now. The stigma of the old EPA still lingers around.
Is that happening in all the bad areas, then? Oakland is also really bad again. I am wondering about Alum Rock San Jose, I want to buy a house there but what is it going to take for the gangs to go away?
I don't know about Alum Rock beyond my area (King/Alum Rock/McKee) but where I live so far the only crime I witnessed was this xxxxx killing a possum and leaving it on top of his abandoned car, right on front of everybody's eyes.
Remember the home we discussed months ago on Platinum Ct? That's my area. Almost 30% price increase. I heard in the news this morning KGO radio about this town, forgot what it is, where the crime is spreading rapidly.
You can't time RE market, neither you can time crime.
I will send you my phone number if you want to discuss about this area. 
