Comments on: $290,000 for a house that’s in Silicon Valley and not in East Palo Alto! http://www.burbed.com/2008/08/05/290000-for-a-house-thats-in-silicon-valley-and-not-in-east-palo-alto/ San Francisco Bay Area, Silicon Valley House Price and Mortgage Insanity Blog Thu, 09 Feb 2012 09:21:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: anon http://www.burbed.com/2008/08/05/290000-for-a-house-thats-in-silicon-valley-and-not-in-east-palo-alto/#comment-13255 anon Thu, 07 Aug 2008 07:56:30 +0000 http://www.burbed.com/?p=2141#comment-13255 Well, the guns was a quote from Madhaus, so ask her. My comment was simply to REMIND everyone that its special here. Who cares if you're surrounded by guns, smog, traffic, entitled yuppies and such? It is the BAY AREA. I think that people may forget how special the bay area really is. In fact, it seems like a lot of people are forgetting when a wonderful home like this is listed for only a quarter million dollars. Well, the guns was a quote from Madhaus, so ask her. My comment was simply to REMIND everyone that its special here. Who cares if you’re surrounded by guns, smog, traffic, entitled yuppies and such? It is the BAY AREA.

I think that people may forget how special the bay area really is. In fact, it seems like a lot of people are forgetting when a wonderful home like this is listed for only a quarter million dollars.

]]> By: nomadic http://www.burbed.com/2008/08/05/290000-for-a-house-thats-in-silicon-valley-and-not-in-east-palo-alto/#comment-13254 nomadic Wed, 06 Aug 2008 05:10:06 +0000 http://www.burbed.com/?p=2141#comment-13254 anon? um. what does weather have to do with shooting guns in the air? just wonderin' anon? um. what does weather have to do with shooting guns in the air?

just wonderin’

]]> By: anon http://www.burbed.com/2008/08/05/290000-for-a-house-thats-in-silicon-valley-and-not-in-east-palo-alto/#comment-13253 anon Tue, 05 Aug 2008 22:59:35 +0000 http://www.burbed.com/?p=2141#comment-13253 "So who wants to live in a ‘hood where the way to celebrate New Years Eve is to fire guns into the sky instead of something a little saner such as opening the bubbly or party poppers?" A better question would be who DOESN'T!? BA weather isn't exclusive to the RBA, ya know! That is, after all, why this place is so special.... “So who wants to live in a ‘hood where the way to celebrate New Years Eve is to fire guns into the sky instead of something a little saner such as opening the bubbly or party poppers?”

A better question would be who DOESN’T!? BA weather isn’t exclusive to the RBA, ya know! That is, after all, why this place is so special….

]]> By: madhaus http://www.burbed.com/2008/08/05/290000-for-a-house-thats-in-silicon-valley-and-not-in-east-palo-alto/#comment-13252 madhaus Tue, 05 Aug 2008 22:28:06 +0000 http://www.burbed.com/?p=2141#comment-13252 <b>Ross</b>, OMG when you said something about a plane at Reid-Hillview getting shot, I thought "I know someone at RHV who that happened to," and it's the SAME GUY! Did you know he died in a plane crash last year? I went to his memorial service. The only reason I have any knowledge of the Tully/Quimby/Eastridge area is because I knew that dude. He lived in the hills high above all that but you had to drive past it to get there. So who wants to live in a 'hood where the way to celebrate New Years Eve is to fire guns into the sky instead of something a little saner such as opening the bubbly or party poppers? Ross, OMG when you said something about a plane at Reid-Hillview getting shot, I thought “I know someone at RHV who that happened to,” and it’s the SAME GUY! Did you know he died in a plane crash last year? I went to his memorial service.

The only reason I have any knowledge of the Tully/Quimby/Eastridge area is because I knew that dude. He lived in the hills high above all that but you had to drive past it to get there.

So who wants to live in a ‘hood where the way to celebrate New Years Eve is to fire guns into the sky instead of something a little saner such as opening the bubbly or party poppers?

]]> By: rick http://www.burbed.com/2008/08/05/290000-for-a-house-thats-in-silicon-valley-and-not-in-east-palo-alto/#comment-13251 rick Tue, 05 Aug 2008 21:27:32 +0000 http://www.burbed.com/?p=2141#comment-13251 WG, Actually I am more concerned with getting shot or deal with tenant problems. I am not sure whether you read my comment about being a landlord in Oakland or Detroit. Cash flow positive means nothing when you might end up dead. I agree with you on this, but I think the uncertainly has more to do about the crime factor and the toughness of the neighborhood. WG,
Actually I am more concerned with getting shot or deal with tenant problems. I am not sure whether you read my comment about being a landlord in Oakland or Detroit. Cash flow positive means nothing when you might end up dead.

I agree with you on this, but I think the uncertainly has more to do about the crime factor and the toughness of the neighborhood.

]]> By: WillowGlenner http://www.burbed.com/2008/08/05/290000-for-a-house-thats-in-silicon-valley-and-not-in-east-palo-alto/#comment-13250 WillowGlenner Tue, 05 Aug 2008 21:13:47 +0000 http://www.burbed.com/?p=2141#comment-13250 rick, what I mean to say is, if you invest in something, commit your time and resources and money (there is always some kind of down payment involved and closing costs to buying RE)- you are expecting that your asset will appreciate, usually. With these, even though you might be cash flow positive by about $100/mo, the possibility of making money on this is much less certain than another part of San Jose. I'm all for buying cheap property- thats my game after all, but buying in 95122 is pretty uncertain. You might make money but just as easily you could lose or break even rick, what I mean to say is, if you invest in something, commit your time and resources and money (there is always some kind of down payment involved and closing costs to buying RE)- you are expecting that your asset will appreciate, usually. With these, even though you might be cash flow positive by about $100/mo, the possibility of making money on this is much less certain than another part of San Jose. I’m all for buying cheap property- thats my game after all, but buying in 95122 is pretty uncertain. You might make money but just as easily you could lose or break even

]]> By: rick http://www.burbed.com/2008/08/05/290000-for-a-house-thats-in-silicon-valley-and-not-in-east-palo-alto/#comment-13249 rick Tue, 05 Aug 2008 21:04:10 +0000 http://www.burbed.com/?p=2141#comment-13249 WG, Why they are of no value? As long as there is rental income there should be value right? I don't see this area change a bit in recent years. I think area with no value means that normal investors don't find it worthwhile even though there is income. Pralay, You are right, I often overreacted to the punks in downtown area, maybe they are even students from SJSU. But I do think that area is a crime rotten neighborhood. Even though I lived in Berkeley student neighborhood before (and there are a lot of weird dudes out there), I still cannot distinguish student from street punks. WG,
Why they are of no value? As long as there is rental income there should be value right? I don’t see this area change a bit in recent years.

I think area with no value means that normal investors don’t find it worthwhile even though there is income.

Pralay,
You are right, I often overreacted to the punks in downtown area, maybe they are even students from SJSU. But I do think that area is a crime rotten neighborhood. Even though I lived in Berkeley student neighborhood before (and there are a lot of weird dudes out there), I still cannot distinguish student from street punks.

]]> By: WillowGlenner http://www.burbed.com/2008/08/05/290000-for-a-house-thats-in-silicon-valley-and-not-in-east-palo-alto/#comment-13248 WillowGlenner Tue, 05 Aug 2008 21:01:52 +0000 http://www.burbed.com/?p=2141#comment-13248 rick, that shopping mall on Tully is Eastridge mall. It was built in the 70s to great fanfare and was THE mall in the peninsula/south bay when it initially opened, I think around 1972. Many jr high schoolers from all the way up the peninsula spent the ENTIRE DAY taking the BUS to eastridge mall in the 70s just because it was so huge and new. The developers built eastridge not to cater to the east san jose clientele (which was bad then too)- but because the perception was that east san jose was the ONLY undeveloped land left in the bay area. There lies the error in trying to build into an "emerging" destination. My guess is many properties were bought around the emerging eastridge at the time. As time passed a few things happened- 1)indoor huge malls became passe, 2)east san jose never really improved, etc and the landlords had a huge mall on their hands to lease without the customer base to support it. That eastridge mall would never have been built today. The irony is that the land it is built on also doesn't have much value as buildable for housing either, which is why it is still a mall. Many other dead malls on hte peninsula like fashion island in San Mateo were plowed under to build other things. But eastridge just sits there like a white elephant. the original eastridge center http://mallsofamerica.blogspot.com/2005/10/eastridge-center.html rick, that shopping mall on Tully is Eastridge mall. It was built in the 70s to great fanfare and was THE mall in the peninsula/south bay when it initially opened, I think around 1972. Many jr high schoolers from all the way up the peninsula spent the ENTIRE DAY taking the BUS to eastridge mall in the 70s just because it was so huge and new.
The developers built eastridge not to cater to the east san jose clientele (which was bad then too)- but because the perception was that east san jose was the ONLY undeveloped land left in the bay area. There lies the error in trying to build into an “emerging” destination. My guess is many properties were bought around the emerging eastridge at the time.
As time passed a few things happened- 1)indoor huge malls became passe, 2)east san jose never really improved, etc and the landlords had a huge mall on their hands to lease without the customer base to support it.

That eastridge mall would never have been built today. The irony is that the land it is built on also doesn’t have much value as buildable for housing either, which is why it is still a mall. Many other dead malls on hte peninsula like fashion island in San Mateo were plowed under to build other things. But eastridge just sits there like a white elephant.

the original eastridge center
http://mallsofamerica.blogspot.com/2005/10/eastridge-center.html

]]> By: WillowGlenner http://www.burbed.com/2008/08/05/290000-for-a-house-thats-in-silicon-valley-and-not-in-east-palo-alto/#comment-13247 WillowGlenner Tue, 05 Aug 2008 20:33:15 +0000 http://www.burbed.com/?p=2141#comment-13247 the problem with cash flow in this area historically is the quality of tenants. The truth is that many east side properties had almost **no** value all through the 90s- a lot of Alum Rock properties were valued at 80K, for example. Only in the Real Estate bubble did these things get bid up to 400-500K. Actually I am surprised this one had a value of 162K in 1997, thats pretty high. A lot of them were worth less, then. At the same time, over time, even bad areas gentrify in the bay area. As was mentioned here once Sunnyvale High school was practically a hood. Just because something is east side does not mean it is not a good investment, you need to look at the area and evaluate its potential to turn around. But anyway, unless you think this place is in one of those areas that has potential to improve, it isn't a good investment even at cash flow positive rent. You are going to have headaches with a lot of tenants, it just isn't worth it. Story and Alum Rock ave have a foothills area that could improve over time also. Alum Rock above Fleming is actually pretty nice. the problem with cash flow in this area historically is the quality of tenants. The truth is that many east side properties had almost **no** value all through the 90s- a lot of Alum Rock properties were valued at 80K, for example. Only in the Real Estate bubble did these things get bid up to 400-500K. Actually I am surprised this one had a value of 162K in 1997, thats pretty high. A lot of them were worth less, then.

At the same time, over time, even bad areas gentrify in the bay area. As was mentioned here once Sunnyvale High school was practically a hood. Just because something is east side does not mean it is not a good investment, you need to look at the area and evaluate its potential to turn around. But anyway, unless you think this place is in one of those areas that has potential to improve, it isn’t a good investment even at cash flow positive rent. You are going to have headaches with a lot of tenants, it just isn’t worth it.
Story and Alum Rock ave have a foothills area that could improve over time also. Alum Rock above Fleming is actually pretty nice.

]]> By: Ross http://www.burbed.com/2008/08/05/290000-for-a-house-thats-in-silicon-valley-and-not-in-east-palo-alto/#comment-13246 Ross Tue, 05 Aug 2008 20:32:25 +0000 http://www.burbed.com/?p=2141#comment-13246 "My guess - the faux rockface acts as bulletproofing." Hey, don't be so hard on east SJ. I keep my airplane at RHV, and know of only one instance when an <a href="http://groups.google.com/group/rec.aviation/msg/5d74dd36620a5f36?hl=en" rel="nofollow">airplane has been shot.</a> But I still don't go out there on New Year's Eve. “My guess – the faux rockface acts as bulletproofing.”

Hey, don’t be so hard on east SJ. I keep my airplane at RHV, and know of only one instance when an airplane has been shot. But I still don’t go out there on New Year’s Eve.

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