Spending $100 Million on Real Estate: Fremont, CA [HouseHack Trip 10]

I found it it's a model too

that's another one they're everywhere so

we're in Hayward it's uh on the East Bay

the thing about like the Bay Area is

it's like 20 or 30 cities that people

just call the Bay Area you can find

wedges everywhere we can find wedges

everywhere except in San Francisco a

wedge like starts at 1.5 the issue is

rentability after the wedge it has to

make sense rent wise and if you're

paying 2 million dollars for a house

that's worth three that's fantastic for

the point of view of a wedge but if it

rents out for you know Seven Grand it's

just not gonna work what's dim sum oh

it's good food because it's dim sum all

day I've never heard of that what is it

no is it like

I actually love Oakland I love the

culture I love like it's beautiful the

food is amazing it's just the crime I

feel unsafe let's get some coffee did

you even use acorns bro bro I don't have

acorns man what am I doing you didn't

even Round Up 40 cents in this over the

next 40 years

40 Years of thirty dollars in your

future dude at a compounded rate that's

like 800 dollars look we got a handsome

guy coming through baby

I'm gonna go look at some real estate in

Hayward and Fremont if we're lucky we'll

see Elon highly doubt that but is that

Elon Musk oh no it's just Sebastian

whoops my bad look at the little dog

it's got a little sweater get in buckle

up I'm about to learn y'all about real

estate

population in hayward's about 158 000

poverty rates only eight percent

probably because quite frankly to live

in Hayward at all you can't be in

poverty we're looking at homes out here

to see what's close to the Tesla

gigafactory Fremont we have power lines

that's for sure

these are cable TV it's nice to meet you

how do you guys fare with investors and

rents and stuff what do you see whether

that's San Fran like SF or out here so I

own properties in the midwest it's a

better cash flow yeah yeah exactly here

there's no cash I generally speaking

unless you have like 50 60 down there

just like two percent yeah it's a crappy

cash on cash return the value here is in

speculation of appreciation luxury flips

remodel long-term appreciation you can't

build anymore here it's one of the

strictest places as far as like building

permits or Hayward specifically is

location wise one of the most epic

locations because it is no traffic 30

minutes to Silicon Valley 30 minutes to

Oakland 40 minutes or so to San

Francisco you have Bart here right so

you have the freeways that'll take you

there you have Bart here which is like

the public train whatever Bay Area Rapid

Transit yeah yeah yeah and so that'll

take you to downtown SF in about 30 40

minutes

um if you don't get beat up by a

homeless person

um

they don't beat up that's a joke they

just yell at you and stuff they're

mostly verbal attacks

uh hashtag not guaranteed yeah yeah

definitely not guaranteed oh no they're

getting they're getting more aggressive

nowadays this one's listed at a million

bucks wow they're in my opinion they're

out of their mind popcorn ceilings gotta

scrape those new floors paint

um water heaters new garage door has no

motor

um but it's a newer garage door so I'm

like put in a motor needs new windows I

would probably do that I would probably

get rid of the bars obviously that

signifies like oh danger you know to

people who are coming through has has

that was did that used to be a problem

in Hayward has that been changing I

would say that Hayward is again like

socioeconomic Blue Collar you know below

median price point area more tenant

filled than a lot of the other uh areas

of the Bay Area right the tape looks so

beautiful so on terrible well I mean if

you look in the kitchen it's all warped

and damaged the lights right there

because I've always wanted what you

don't like the 299 like a porcelain uh

uh hold yeah it's the bulb those are

like 299 at Home Depot but the cabinets

are actually not terrible I mean the

fact that you've got them going from

where they are to the ceiling you can I

mean I don't know if the market would be

okay with it but I mean I I would be

okay with painting this uh I I think

these are actually in great shape you

know it it looks gross but I mean really

if you take the hardware off give it a

little sand maybe some new hinges and

spray these nicely this is a fantastic

cabinet I mean for me these would be an

excellent candidate for painting you get

rid of the backsplash on the countertop

the sink of the appliances start over

there but new hardware and paint on

these caps they're in great shape so but

yeah I mean you know this probably has

to get rebuilt you know this has had

some water leakage in the past and so

you would rebuild that it's not a big

deal the floor's got to go it's pretty

pretty beat up over here especially in

the kitchen but this is your highest

wear and tear area here this floor plan

is funky though I mean you couldn't

touch I like the fact this is a million

dollars and it's this is the floor plan

right it's also kind of crazy because

you've it's like they've done something

to this house where it's been added onto

but this is the hallway and the hallway

goes into your vanity so if you're

brushing your teeth over here and

somebody walks in and you're like oh

I'll be right there the problem with

with NorCal and this was my concern is

that it's tough to get get properties to

cash flow at all so really for everyone

that one really good deal you buy in

door Cal in a great neighborhood you'd

probably have to buy five or six in

Arizona or Vegas or maybe even you know

two or three in the midwest to offset

this so you could get a blended cash

flow are you playing PM do you play yeah

what do you play Beethoven go

okay holy I'm blown away yeah well

you want me to oh bro come on not on

camera

Sam this is how the properties over time

get their foundations really messed up

too this is where you get the rot right

where the rain basically splashes up

against and then you get this is all

rotten over here yeah you've got this

person over here who's basically doubled

the size of their home with a massive

addition they've done a massive addition

to the top nowhere near the size of this

but it's actually a great sign when you

see people adding on because it means

they love their neighborhood and they

don't want to leave most buyers in most

areas that I sell homes like most of the

people coming through need to be close

to the parents a San Francisco Bay Area

will always be the Bay Area and people

will always want to live here where else

are you going to build anymore I almost

bought one of the uh the Painted Ladies

and I saw that video oh you saw no way

dude I made an comment about I'm

sorry oh dude what did you say don't

tell me what'd you say you were talking

about doing a condo conversion about

buying it and turning it into two units

turning a condo conversion I commented I

said you can't do a condo conversion in

San Francisco because the lottery is

gone and the only way you can do it now

you know the person who bought that

Painted Lady worked at Twitter just got

laid off Saturday two years and 500

Grand of paperwork just to get approval

I think the cost of rhinos were

somewhere in like five six million

dollar range is crazy Mikey tell us more

about Hayward what is this place so like

where's the best area we could buy homes

and just have the best appreciation if

we wanted to pump up the numbers of

appreciation a little bit Palo Alto

that's a uh I don't know about Palo Alto

it is already very expensive and

everything's already kind of in good

shape I don't think there's like we're

gonna find many wedges or many fixers in

Palo Alto it's always a wedge there's

always if there are flippers there is

always a wedge so what you're saying is

there's zero flipping in Palo Alto no

flippers uh the flippers are gone

the area it's pure speculation even he

even said himself so it's all

appreciation yeah low caps still

everything so crime and stuff so like if

people do happen to leave this area even

more and it does happen to get worse

then you're left holding the bag and it

might appreciate though it could do what

it's done for the past 20 years but

right from an investing standpoint I

don't I wouldn't invest it comes down to

the location and it is I would say one

of the most affordable cities in the

East Bay that's not Oakland where like

you're literally worried about getting

shot like he was he was kind of joking

around but I've literally stayed up at

night before looking through my blinds

because there's a couple dudes with guns

across the street and they broke into

the store and I'm just making sure they

don't come for the house next so like

that was a very real fear in East

Oakland yeah

Property Management here oh God you'd be

scared like if you did happen to get

some bad tenants like you'd be scared to

play for your life dude you scared for

your life and your property yeah can't

evict Provo for example you had people

who move or who were buying property

there because they could rent out the

rooms they knew that they could rent out

the rooms so they were willing to pay a

higher price for the properties because

they're like I'm gonna get higher cash

flow I worry that here in the Bay Area

you're getting people who are like I

will buy a home here because I believe

the appreciation is going to be massive

and hugely so you're almost prepaying

for some of that appreciation kind of

like why are you paying 700 grand for a

dump in Provo well you're pre-paying for

all the cash flow you're potentially

going to get uh why are you pre-paying a

million dollars for you know a dump in

Hayward oh well because you're prepaying

for the potential appreciation that's

called a wood Shake roof your insurance

premiums are about 3x because those

things light with a cigarette that was

probably built in the 40s

really well detached single car ah no

that's a double car that's a two car

right there wow there's a lot of

variants over you see that adobe style

home right there I bet you that's 20s

with the detached garage in the back

yeah this could be going down into 20s

over here who's the second person uh

That's Mike

is they work together Mike Hunt yeah my

name is Mike hawk or my friends call me

Little Mikey I'm taller lying down see

and that's always the thing in these

older neighborhoods you get somebody

who's done a lot of improvement I mean

but that's also a potential risk factor

because how do you comp I mean obviously

they've done a lot of work they've got

the newer roof they spent a lot of money

on that type of shingle you can see it's

like a two to three colored shingle

that's by Design as opposed to uh you

know a typical roof like this one which

they probably spent some nice money on

that house as well they've got sort of

the typical uh you know blue style

shingle you could actually see those two

homes right next to each other the one

on the right has the multi-color all

both of these homes dual pane windows

nice paint jobs on the outside uh the

multi-color is more expensive so they've

done it over here with even a larger

shingle to make it look like an older

kind of shake and the stone work they've

done but the issue is the more you get

these customizations the harder it is to

also comp these homes because every home

on the street is starting to look

different even though they were all

potentially built by the same Builder

some of them like that one has an add-on

above the one car garage

uh you know some of them have one car

garage and some of them are detached

some of them are attached some of them

like this one has expanded to a two-car

garage you can actually see here one car

garage here two car garage and so you

have to adjust for so much stuff it does

increase your risk as well uh because

then you might be overpaying misaligning

with the console this is why you could

never use cost per foot if you ever hear

somebody in single family real estate on

cost per square foot bad sign

see but then here's potentially your

wedge like the overgrown yard and then

see that has not been painted in about

50 years on the side over here the water

heater's got a bunch of junk on it to

where the vent has been bent over you've

got orange trees everywhere so you know

this place is like they're rats

everywhere on this place I guarantee you

this place is rats everywhere okay so

what is it is somebody pass away or oh

those are my favorite the almost horror

style nobody's pretty much there yeah

okay oh a good old laughing plaster on

the homes out here yeah these are

definitely 40 or this is probably more

like 20s I mean with this almost Spanish

style uh 1929 29. yeah yeah I mean the

fireplace gives it away and even the the

sort of coved ceiling over here that's

gorgeous I mean these are actually

really nice homes obviously it's not

with all the junk that's in it and then

you've got some kind of water intrusion

this whole window is just shot I mean

this is probably all mildew well I mean

Stone laugh and plaster but still

fantastic I mean I love this kind of

stuff this this is easy for me I yeah

yeah seriously looks like is

you know this is a this is such an

incredible sink actually they and see I

mean these are the sort of the the

little details that you don't see

anymore uh in uh in newer cabinets I

mean these these hinges over here so is

it normal you all have basements over

here really depends I mean this is more

of just it could be just like storage

because it's not below grade you could

see that you have an exit actually yeah

you're right so you said there's a

toilet that somebody threw in here I'm

sure it's permanent that's the half

bathroom Christian you want to show off

the the half bath we got over here with

the single wall Construction

Wall that they threw up definitely 100

uh this is not enough clearance you mean

this is not the Adu

we run into this all the time uh you

know garages uh basement areas just

anything below that they can add square

footage oh that part down there yeah and

you also run into deals like this though

often you just get like just people

who've moved on so to speak uh in the

older homes and then this is again this

is an off-market opportunity so this is

something that most of the Public's not

seeing so this is a great opportunity to

come in and see if you can work a deal

and you know snag it before they do any

work to it oh yeah he's a little bit of

work yeah yeah but I love it uh yeah

that's that's fantastic so now there's a

staircase here I feel like back in the

20s they didn't do this but then again

this is such a I feel like this is built

almost on a slope and that's why maybe

we have that a little bit Yeah okay

exactly but right above you you can see

same kind of leaks mold it'll do yeah

yeah we'll just spray some paint and

it'll be fine

you've got the rat droppings next to the

scale I feel like rats died on that

scale oh this used to be a sink yeah so

there was a sink here too so originally

probably this home was a 2-1 right yeah

yeah yeah I would agree we added that uh

half excuse of a half bathroom

downstairs

um this room is is really wild oh they

for sure cooked meth here

that's where the breaking bad stuff

happened wow Kevin let's cook

hey look at the old luggage traditional

luggage I love it

yeah yeah here's your thumbnail

yeah this is all two one you got the old

picture rail up here

well that's because you have uh laugh

and plaster walls are really hard to

hang things on so you would hang them by

a wire off the picture rail wow goodness

gracious Cafe pictures it's always

interesting seeing uh people's things

probably buy something like this without

even thinking about it for more than 20

seconds like yeah yeah this is this is

awesome I would not buy anything other

than this with like a huge margin of

safety huge margin yeah this is a huge

margin safety which is great but do you

want to be in Hayward in the first place

that's the other thing so like long run

does it make sense to have the low cash

flow and the headache right because

that's the other thing is all the render

that has to go into that is a hell lot

of headache so apparently this place is

a flip let's see what it has so what do

you think of Harvard Heyward is that

nice I like it it's more affordable some

of the neighborhoods is a little spicy

right right so I mean you've got you've

got like a creek over here you've got a

lot next to you to be developed you've

got somebody who's added onto or turned

a garage into what looks like maybe a

four Plex right here then you've got the

apartment building here massive

apartment building over here and this

apartment building's got a little rust

what tenant wants to live here next to

all this well convenience I mean it's

good location as far as like just

commute just into SF just in general

yeah

because the bridge is close to here yeah

of course well Hayward in general is on

the bridge yeah exactly so okay

on the street here like we were there

are two units here yeah this is a duplex

oh okay so you could because that was

the garage I'm assuming that's no longer

the garage then because it has a

bathroom window in it yeah we're like

why is that in the garage all right

let's take a peek let's see what they

did all right let's see the duplex oh

well they did a nice job I mean visually

uh this looks quite nice so what's in

here oh this is just another bedroom

this was your grocer that's not a

bathroom window they put a very small

window there's no way that could be

permitted

maybe no I don't think so I don't think

so because this is a bathroom window and

the problem is that windows and bedrooms

need uh need enough egress so you need

enough square footage to be able to get

out you couldn't even get out so that's

really interesting that kind of makes me

think this whole garage conversion was

probably not permitted uh just based on

yeah what happens if you do something

that's not permanent like what's the

worst thing like they could do well if

you have tenants the tenants could sue

you for all the rent back that they paid

and then you you have to go through Code

Compliance so they double all your fees

yeah it's just not not in California not

not like that where is the second unit

has anybody found it

oh yeah oh let's take a peek oh good so

okay oh yeah you're right oh interesting

wow the heater's been running in here

oh wow trying to burn the place down

somebody was trying to do an insurance

claim yeah yeah seriously right

oh man yeah hey you guys want to come to

sauna with me

I'll start stripping yeah let's not take

it off is this for the YouTuber the only

fans which one are we recording right

now let's post on both

I don't know man I mean I know we picked

Hayward but

I'm not jumping up and down at least

these guys do the whole Bay Area eh you

know how this is Grandma's house in

Grandpa's house they haven't driven in

so long that front tire has been flat

for years and the pet outside of the

home hasn't been painted forever you got

the older Windows right here I don't

even know how they get upstairs it's

very looked like you had some 80s no

that Arch is like 70s that's the 70s

Arch here like late 70s maybe mid to

late we'll find out I always like the

challenge even if I'm wrong that's 70s

man that's 70s uh this one's a 1979. oh

yes

79 late 70s yeah oh yeah well this would

have given it away if I just went inside

I would have known right away 70s with

the rock yeah I mean stuff like this I

love with the like the uh you know water

intrusion and the the ceilings I mean

stuff we could do stuff like this all

day long what's cool about the floor

plan on this one you can knock this down

pretty much it would be totally worth it

to have this be like an open kitchen uh

living room family room floor plan I

would just get rid of it and just make

it part of the backyard make it a nice

backyard oh these oh it's these old

rooms yeah these guys always leak after

like 10 years they just start leaking

these are easy reduced oh the old

wallpaper everywhere and see because you

put you put wallpaper in the bathroom it

all just basically starts wanting to

come up uh although that could also be

thick texture that's back there oh they

rented rooms over here that's what they

did these were room rentals yeah that's

how they locked the double lock these

there well that's one way to hold up the

house

two nails and a and a two by six yeah a

little a little plywood exposed plywood

yeah this is not a rundown neighborhood

but I do see the freeway right there so

welcome to Fremont I don't know anything

about Fremont do you need a gun no okay

no not at all Fremont is a huge Indian

Community okay so it is like I think

some people call it like little Mumbai

or something like that basically it's

very similar to Hayward but maybe homes

are a little bit newer neighborhoods are

a little bit nicer and much better

School District fantastic yeah I I this

is like straight out of the 90s

I mean I know this is older but

yeah yeah this is very

this is easy actually this probably is a

90s kitchen nice little three and two a

normal floor plan yeah exactly oh yeah

they did these in the 90s no no somebody

cared about this house I mean this is

like the perfect kind of thing because

the Cosmetics are old right but like the

person who owned this property cared

about it all right guys if you don't

mind a little yeah absolutely let's do

it it's a play appreciation yeah

um

so my dad said before he left her family

mine said I'm gonna go grab cigarettes

I'm just kidding I'm just kidding I

never met him go ahead

how do people get in touch with you man

and what shall we go into for The Improv

tonight Joe poliak my friends call me

Joe swolliak Rise homes rise homes local

San Francisco Bay Area real estate agent

I got my main man Mike sunitsky also Top

Dog agent on my team oh contact

everything is Joe poliak so at Joe

poliak um at Mike sinitzki and at rise

homes this is where the that Tesla

employee filmed himself like having the

FSD crash into one of those and it like

slightly scratched his bumper It's

probably that one right there and then

he got fired for posting about it and

then you interviewed him

yeah

just yeah pretend like you work here go

from where like I've been before I know

we're allowed

why are there so many Teslas here this

is where customers drive up and pick up

their cars

so this is employee parking here okay

perfect

yeah this was pretty close to uh the

house we just looked at it's a model too

convertible there it is that bro here we

go yeah yeah do it dude is that the

Tesla Model too yes yeah he said yes

I'm buying call as soon as we get back

there's another one they're everywhere

wow so there's already more of those on

the road that there are lucids

all right we're out here at the Hayward

Executive Airport pretty nice out here

how'd you like it Connor okay all right

that's roughly how we felt about Hayward

is I mean uh Fremont was fantastic

Fremont was great we got to drive by the

uh the Tesla gigafactory there and uh

and then now we're leaving

we got kicked off the plane foreign yeah