Homeowners rent out rooms to stave off foreclosure

Reeling from the recession’s one-two-three-punch of job woes, climbing mortgage payments, and evaporating equity, desperate Silicon Valley homeowners are dipping into a nearby income stream to avoid foreclosure:

That bedroom just down the hall.

While renting out a room has been around for years, especially in the South Bay’s Latino neighborhoods, sharing a home in order to save it has become an increasingly popular way to hang on to the front-door keys to the American dream.

"I’m up against a wall and I had no other place to turn for income," said Rafael Porras, a 50-year-old waiter who began renting out a room in his downtown San Jose condo this month after he was squeezed by pay cuts at work and a mortgage payment about to rise. "But I had to do it because I don’t want to walk away from this place. My credit’s excellent, and without good credit, you’re nobody."

Whether they’ve rented out rooms in the past to make ends meet, or a job loss has prompted them to tap into their inner landlord for the first time, many people say their rental income is the only thing keeping them from losing their homes. And for many homeowners — even those whose property is worth less than their loan amount — losing their home is not an acceptable option.

"I can’t imagine life anywhere else," said 71-year-old Margaret Licon, who bought her San Jose house 40 years ago and raised six kids in it before losing her husband 25 years ago.

—

"Renting out bedrooms is a growing trend," says Sunnyvale housing counselor Maritza Wong, who works for the nonprofit Project Sentinel. "And it’s not just lower-income people doing it, but even people who were making good money before losing their jobs.’

At Project Sentinel, where staffers report as many as 20 percent of their clients becoming landlords under their own roof, counselors are recommending the practice as a way for homeowners to tweak their debt-to-income ratio in order to qualify for a modification. But a word of caution: becoming a landlord, especially for someone with little or no experience, can bring headaches, from tenants who fail to pay rent to those who are just a pain in the neck to live with.

Did you see that? “I can’t imagine life anywhere else”. That’s just how amazing Silicon Valley is – people would rather rent out their homes than leave!

Really, this is a reflection of two aspects of Silicon Valley’s nature:

1: Generosity. Just like how companies love to share stock options (equity) instead of paying something dinky like cash (like they do on Wall St), homeowners love to share their houses so they can offer others the opportunity to move to Silicon Valley!

2: Entrepreneurship. Silicon Valley folks are incredibly resourceful in finding new ways to raise revenue. Besides, how much of a 1100 sqft house do you really need?

Congrats Bay Area! Congrats! The rest of this nation could really learn from us!

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I thought it might be good to take a break from books for a little bit. Let’s face it, here in Silicon Valley there is so much cash floating around that you may have trouble keeping track. For example, you may heard of people using their houses as ATMs – well, in Silicon Valley, because houses are guaranteed to appreciate, houses really can have ATMs built in!

And then there’s the fact that every time you go outside in Silicon Valley, there’s practically money raining down from all the startups, the virtual farms, the social networks, the virtualization, the clouds, the cupcake stores. Do you have $20000 or $200000 in your backyard today? You’ll need a counter to be sure!

How do you handle your daily uncovering riches today?

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536 Laidley St San Francisco, CA 94131

$875,000

Beds:	5
Baths:	3
Sq. Ft.:	2,136
$/Sq. Ft.:	$410
Lot Size:	-
Property Type:	Single-Family Home
Style:	Contemporary
View:	Panoramic, City Lights, Bay, Park, Hills, Mt. Diablo
Year Built:	1906
Community:	Glen Park
County:	San Francisco
MLS#:	364602
Source:	San Francisco MLS
Status:	Active This listing is for sale and the sellers are accepting offers.
On Redfin:	24 days

Great extra wide property on quiet Laidley Street in Glen Park. There are two separate detached units, each with a garage. The front 3bd. 2ba. house has new central heating, 2nd floor deck with crow’s nest, ground floor studio, views of Mt. Diablo, San Bruno Mtn, and Bay views. The rear unit is a legal 2 bd. Each needs some work. 4 blocks to GLEN PARK BART. This is a short sale. Offers will be reviewed as they come. Open Sundays 2 – 4pm and Tuesday Tours. Call or write for other times. Come see!

Some people trash their house when they know they’re going to be foreclosed… these folks apparently decided to paint the exterior to vent their frustrations.

Seems that with tenants, the owners would’ve been able to keep up with the payments.  They originally put 20% down to buy it (according to PropertyShark).

This seems to imply that the design was in malice. Personally, I think this is exactly the kind of house that San Francisco is famous for – individualized, iconic, controversial. Just think of how this house is already cheering up this Friday at Burbed!

If you’re not proud of owning this house and its color scheme, then this house probably isn’t for you.

Now, to onto the nitty gritty: offers will be reviewed as they come. So, it’s definitely in your best interest to bid early and at a very high price. Otherwise, this could easily slip away. Maybe you should even go as far as to place multiple bids under secret names – each higher than the last! Now that’s a strategy that any realtor would approve of. Ignore the fact that there are no interior pics – it’s probably just too fabulous.

And, with the separate detached units… in a word… cashflow. Sweet sweet cashflow.

Happy friday!

372 EL CAMINO REAL Atherton, CA 94027

$1,315,000

Beds:	2
Baths:	2
Sq. Ft.:	1,330
$/Sq. Ft.:	$989
Lot Size:	8,500 Sq. Ft.
Property Type:	Detached Single Family
Stories:	1
Year Built:	1922
Community:	El Camino to Alameda
County:	San Mateo
MLS#:	81005654
Source:	MLSListings
Status:	Active This listing is for sale and the sellers are accepting offers.
On Redfin:	7 days

Complete renovation 2 years ago! Beautiful chef’s kitchen with granite countertops, stainless steel appliances, breakfast bar, & wine fridge. Living room with access to patio/lawn, 2 remodeled baths, dual-paned windows, hardwood floors, surround sound, and lutron switches with remotes.

It’s search engine Thursday!

Usually an actual search query is featured.However, lately there has so many “cupertino union school district lottery date” and “cusd lottery” (what’s that all about?) in the logs that it wasn’t particularly interesting. So, let’s examine a different potential query: is new york too expensive compared to california

The answer is a resounding yes. New York is absolutely too expensive compared to California… the Bay Area should definitely be more expensive. We’ve got sushi, world class universities, El Camino Real – what do they have? Jersey Shore?

Now let’s give credit where credit is due – we are certainly getting there. Out in the suburbs, we’re beating them soundly. Take this for example:

1.47 acre house – with access to Wheatley Schools

versus this:

Duc & Elliot built good houses in Cupertino

Oh yeah. Beaten.

More importantly, I think we’re even making progress against Doomedhattan with its Doomed Bankers.

For example, some of you may recall that the “smallest apartment in the city” at 175 sqft sold for an astounding $150,000. At the time, it made all the headlines!

Do the math people. Is it any wonder why all those Bankers failed and our VC succeeded? $150,000/175 is a mere $857 per square foot. Palo Alto… even Cupertino can beat that on most days!

Great work everyone! Don’t worry… 2010 is the year we’ll beat Manhattan and take the reign of “most expensive”! It’s our destiny!

The new hot spot in Silicon Valley? That’s right, Campbell!

Along the cul-de-sacs that eddy out of Cambrian Drive, a civil war is being fought on battlefields with names like Sweetbriar and Stonehurst, where residents are waging a determined campaign to get into what they are certain is Silicon Valley’s most desirable dwelling destination.

San Jose’s city limit is only a few hundred yards away, but that’s not the velvet rope they’re trying to slip under. These people are attempting to drive a stake through the municipal heart of the Bay Area’s biggest city, planting yard signs that rise like middle fingers to declare: "We’re For Campbell Annexation."

That’s right, Campbell. These days everybody wants to be in Campbell.

"To me, it’s more prestigious to say we’re in Campbell," explained Lisa Dow, a real estate agent who lives in this unincorporated pocket of Santa Clara County that wants no part of San Jose. "Campbell is kind of the hip place now. Affordably hip."

With the city’s sixth hotel — a 162-room Courtyard by Marriott on Creekside Way — opening Thursday, and with businesses such as Katie Bloom’s Irish Pub and Chacho’s Mexican restaurant moving to its downtown shopping district from San Jose, Campbell is viewed by some of its most recent transplants as the "anti-San Jose."

Campbell sits comfortably at the hub of San Jose, Los Gatos and Saratoga, much as Switzerland forms a beautiful bull’s-eye amid France, Germany and Austria. According to Courtyard general manager Michael McClintock, Marriott picked Campbell in part because its guests can step out the door and board a light-rail train to HP Pavilion for a Sharks game, or be at eBay’s headquarters in a matter of minutes. Campbell is in the middle of everything.

…

"People used to say we were the next Los Gatos," said Low. "They don’t say that anymore." Not long ago, the merchants association from Los Gatos — with its famously bustling little downtown — sought advice on how to generate foot traffic from Campbell.

Natasha for this find!

Wow! Who knew that Campbell was the Bay Area’s Switzerland! Or that it was such a hip and happening place! Heck, it’s going to be the NEXT Los Gatos. THE NEXT LOS GATOS! Wow!

Let’s just say that NY and Washington DC had best be shaking in their boots. With San Francisco, Palo Alto, Cupertino, and now Campbell – the Bay Area is fast becoming the place to be in America.

What this really means is that if you haven’t bought a place in Campbell yet, you really should because soon it will be too late and you’ll be priced out forever.

Let’s have a vote: which store will next move into the Pruneyard?

1. Tiffany’s?
2. Nordstrom’s?
3. Nieman Marcus?
4. Apple Store?
5. A Wolfgang Puck restaurant?

Thanks to Burbed reader Sam for this find and write up! (Unfortunately this got caught up in my spam folder, so the situation has changed since the original write up…)

Here we go!

Oh yeah- it’s dueling houses time in the city of SM!  Both 500K.  Both 3 bedrooms. One has two baths, but only has 1 car garage; the other has 1.5 baths and a 2 car garage. Which house will prevail?!

Fighting in the dark gray shorts, priced at 500K, this house comes with 3 bedrooms, 2 bathrooms and a 1 car garage in a spacious 1080 sqft of living space perched on a spawling 5200 sq ft lot.

1532 KEHOE Ave San Mateo, CA 94401

$499,000

Beds:	3
Baths:	2
Sq. Ft.:	1,080
$/Sq. Ft.:	$462
Lot Size:	5,202 Sq. Ft.
Property Type:	Detached Single Family
Stories:	1
Year Built:	1955
Community:	South Shoreview
County:	San Mateo
MLS#:	81004982
Source:	MLSListings
Status:	Active This listing is for sale and the sellers are accepting offers.
On Redfin:	12 days

Great Opportunity for fist time buyer, excellent area, ready to move in! close to shoping Centers and transportation. Beaware of DOGS ON THE PROPERTY)

Fighting in the light gray shorts, priced at 500K, this house comes with 3 bedrooms, 1.5 bathrooms and a 2 car garage in a spacious 1010 sqft of living space perched on a spawling 5500 sq ft lot.

1301 S NORFOLK St San Mateo, CA 94401

Listed at: $499,500

Beds:	3
Baths:	1.5
Sq. Ft.:	1,010
$/Sq. Ft.:	$495
Lot Size:	5,460 Sq. Ft.
Property Type:	Detached Single Family
Style:	Ranch
Stories:	1
View:	Neighborhood
Year Built:	1955
Community:	South Shoreview
County:	San Mateo
MLS#:	81004737
Source:	MLSListings
Status:	Pending With Release This listing is in escrow and all contingencies have been fulfilled. "With Release" means that there’s a release clause with the offer stating that the buyer is trying to sell his current home before closing. A release clause lets the seller back out of the deal if the buyers can’t sell their home within a set time frame.
On Redfin:	13 days

Rancher oversized corner lot. Great conditions, ready to move in. Double window pannel, additional room with out permit. This house has a large yard with a covered patio. See it, make your offer, get the deal!

One house is on Kehoe- who wouldn’t want to live on a street terminating into a freeway entrance!  Talk about convenient access to transportation!

But wait, the other is on Norfolk and Kehoe!  Corner lot bliss!  Not only can you get on the freeway faster than you can slam and tint a late-90s civic, but you also get to live on the avenue d’grace that is Norfolk.  Don’t forget to budget a little extra to put up the chain link fence in your front yard- you wouldn’t want to fall out of step with your neighbors!

BUT WAIT THERE IS MORE!

Before you think dark shorts will give up without a fight- make sure you read the realtor’s description "Great Opportunity for fist time buyer, excellent area, ready to move in! close to shoping senters and transaportation. Beaware of 9DOGS ON THE PROPERTY)". (sic)
THAT’S RIGHT YOU GET SHOPPING SENTERS AND TRANSAPORTATION!!!  I for one don’t know anywhere else in the Bay Area you can find shopping senters and transaportation.  Transa-portation.  Dayumn. 

NOT ONLY THAT BUT IT COMES WITH 9DOGS!  Sweet Jesus, hallelujah!  The lord has come down from on high and found me my dream house complete with a breeding operation/dog fighting ring.  LAWDY-ME I’MA SAVED!

I’m a little afraid of "fist-time" buyers, but hey, San Fran isn’t too far away, I guess it’s time for me to start broadening my horizons.

Man, and to think that these places sold for 750K just 4 years ago. I-N-S-T-A-N-T E-Q-U-I-T-Y!!!!!!!!!
What!?!? They are both short sales!?  The winner gets sold. The loser ends up REO.  Will this end in a draw?

So far, it looks like 1301 is winning… but who knows! It’s going to be a photo finish!

1200 SQ FT HOME ,NEW ROOF, ELECTRICAL, ANTIQUE BEDROOM& EVERYTHING – $20000 (los gatos)

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Date: 2010-02-03, 4:50PM PST
Reply to: sale-tkk3y-1584878278@craigslist.org ^{[Errors when replying to ads?]}

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BEAUTIFUL AND STURDY STRUCTURE.
ROOF NEW MADE IN 2005.
EXCELLENT CONDITION.
APPX. 1200 SQ FEET HOUSE.
YOU TAKE EVERYTHING AND MAKE YOUR OWN HOUSE.
ANTIQUE STYLE BEDROOM IN HEXAGONAL SHAPE.
EXCELLENT FIRE PLACE.
EVERYTHING WORKS.
INSTALLMENTS ACCEPTABLE.
COUNTY HAS ASKED FOR MANY THINGS – ONE OF THEM IS TO DEMOLISH THE HOUSE.
GAS TANK ETC. – IF YOU WANT THE PRICE WILL ADD UP.

Thanks to Burbed reader RemodelNerd for this peculiar craigslist find.

Here’s what he wrote in to say:

Even though it’s been awhile since I checked in, just wanted to let you know I still get my daily dose of Burbed.  I found this fascinating post on Craig’s list and I just know you needed to see it (just in case the link stops working, I pasted the entire page below).

http://sfbay.craigslist.org/sby/mat/1584878278.html

At first I was excited to think one might be able to obtain a house for $20,000 in Los Gatos, but as I started reading the details, I began to smell a rat.  For one thing, apparently the county has asked for “many things”, including “to demolish the house.”  Wow.  Talk about your liberty-stealing, all powerful meddling government officials!  This is a house in excellent condition, with an excellent fireplace, and “everything works”!  How dare they ask “to demolish” it.

Also, if I want the “gas tank, etc.” the price will add up.  This is where I start thinking the whole thing is just some kind of bait and switch- add up to what?  Kind of an important detail, don’t you think?  Probably at this point I need to just turn the whole thing over to the experts at Burbed-I’m sure they can make more sense of it than I am able to.   

Damn gubernment! Always taking and taking and taking. Always making ridiculous demands… like asking to demolish the house. Quick! Call the Tea Party! This is something they would/should care about!

That said, what the heck is going on in this listing? Can this really be $20,000? Any Los Gatos experts here?